What is customer experience personalization?
July 3, 2022Businesses always strive to bring the best experience to their customers, and one of the ways to do that is to personalize the customer experience. In today’s article, TekLabs will help you better understand what is customer experience personalization? As well as how to personalize the customer experience
What is customer experience personalization?
Customer experience personalization is the act of tailoring experiences or communications using the basic and detailed customer information a business has collected to create promotional activities. target potential customers.
Each business will have different visions and business goals, so the way of personalization in business activities is also different. However, the key goal in each personalized strategy is to impress customers, satisfy their needs and enhance their experience with your products and services.
One of Netflix’s breakthroughs is using Artificial Intelligence (AI) to uncover new aspects of user behavior and make strategic marketing decisions.
With the data collected from users in the past, they used it to create programs tailored to the insights of each user.
For example, the data obtained shows that people who watch less than 15 hours of content in a month are more likely to have their accounts canceled, Netflix will find out which shows and videos can attract these users. . The app automatically sends marketing emails, in-app notifications, or favorite show reminders. All are designed to increase user engagement on the platform. In this way, Netflix can reduce the probability of losing paying users.
As another example, if users watch or are interested in survival games like Squid Game, Netflix will recommend similar movies to keep users engaged with platforms like Alice In. Borderland, The Hunger Game, Battle Royale…
Why Personalize Customer Experience?
Attract potential customers
The application of customer experience personalization helps businesses easily attract and reach potential customers to quickly convey meaningful service messages.
Enhance customer experience
Research conducted by Salesforce has found that customers are willing to provide more data in exchange for personalized marketing: with 58% of respondents saying a personalized experience is very important. important when buying from a company.
The reason to explain the above number lies in the constant development of the digital age and the ever-changing needs of consumers. Not only using a product or service, customers also want to find the uniqueness, attraction and self-affirmation more during the experience.
Customer retention
Attracting customers is difficult, retaining customers is even harder. Personalizing the customer experience helps customers stay engaged with your brand.
According to a study, 44% of customers are likely to become engaged with a business after experiencing a personalized service. Meanwhile, 49% of customers bought a product they didn’t initially intend to buy just after experiencing the service.
In the 4.0 technology era when the competitive environment is increasingly fierce and strong, a well-personalized product and service that matches the needs and preferences of consumers will be a customer retention strategy. effective. This is a necessary “competitive weapon” that businesses need to focus on.
How to personalize customer experience
Collect customer data
If you want to provide consumers with personalized content, it is important to analyze all data related to your customers. This is an important initial step you need to take to get valuable feedback to help you design a working strategy. Here are three ways to get started.
Conduct customer polls and surveys
Monitor all social media comments from social media followers and email subscribers
Web analytics to reveal user behavior
Segment your audience
While segmentation attempts to group potential customers into similar groups, personalization represents the ultimate goal of customizing the person’s experience to their individual needs and desires. This is based on the insights and insights you’ve discovered.
Personalization and segmentation are often used interchangeably and can be viewed as similar. Both use information collected about marketing leads to customize their experience. It’s easy to think of them as points along a custom message line.
Once you have enough material to work with, you can easily segment your audience based on different metrics. This will create the main theme for future content creation activities.
Multi-channel usage
The key component of personalization in customer service is knowing the history of customer interactions across all communication channels – in other words, to provide omnichannel service.
For example, imagine that a customer support agent receives an email from a customer about a problem, which they then help them solve. Some time later, the customer called with the same problem, but this time another agent came to pick it up. In this case, having a system in place that lets the agent see that it’s a recurring problem will not only give the employee context, but can also help resolve the issue faster. And, it will show customers that your company cares about their particular communication history.
Solutions that provide a unified view of all interactions across channels help you achieve personalized and omnichannel service. Conversations become more targeted and relevant, as agents know what customers have asked before or what they searched for.
Leverage technology
Using advanced technology in personalizing the customer experience is important. It is known that organizations have increased their use of machine learning or algorithms and personalization over the years, from 26% in 2018 to 40% in 2019 to 46% in 2020.
A big part of that is using conversational AI to answer questions and make relevant product recommendations. For example, Chatbots can collect data and use management software to store and analyze the data to understand what each customer might be interested in.
Respect privacy
Personalizing the customer experience is only possible when the customer agrees to share their data with you. Despite widespread concerns about data collection and privacy, 83% of customers are willing to share their data to deliver a personalized experience. Here’s the problem, though: they expect transparency, and they’re unlikely to accept your use or collection of their data without their knowledge.
