Customer personalization matters in stores and online
People like to feel valued, whether it is within their personal relationships or the connections they make professionally. This rings especially true when it comes to consumers dealing with retailers – shoppers want to know their business is appreciated, and if they feel as though they are merely another customer instead of a valued patron, they could opt to go to a competitor. Therefore, making interactions more personalized has become increasingly important for merchants. Failing to do so could result in a loss of not only customer satisfaction, but sharp drops in retention as well.
However, with today's multichannel retail industry, companies have to ensure they are personalizing various elements both in their stores and on their websites. This isn't difficult if organizations follow several steps, and with the right effort and determination, every consumer will feel valued.
Personalization not a priority
Although many businesses are fully aware of the benefits that personalization provides, especially on the internet, there are only a few that are actually making digital interactions more tailored toward individual patrons. According to a recently released report by Econsultancy and Monetate, nearly all of companies surveyed (94 percent) stated they knew that offering more personalized communications on the web "is critical to current and future success."
However, more than half of respondents (56 percent) do not engage in personalized interactions with online consumers, the study revealed. One of the main reasons companies are not yet providing these kinds of conversations is because they are held back by technology. Managing IT systems and maintaining control over databases were some of the top cited obstacles to full personalization.
"It is quite clear that personalization is seen as mission critical to the success of online business but too many organizations have yet to implement a well thought-out and tested approach," said Linus Gregoriadis, research director at Econsultancy. "Those companies focused on delivering personalized customer experiences are realizing great returns in online sales and key website performance metrics."
It's all in the details
While incorporating the right technology is one of the key components to effective personalization, there are other strategies that retailers can follow to provide more engaging communications, both in stores and online. Direct Marketing News explains that gathering simple details about customers – such as name, address, birthday and past purchase history – businesses can apply this information to in-store conversations as well as email messages. Offering small gifts on birthdays or special occasions is one successful way to make shoppers feel more valued.
