It’s no secret that tailoring your approach – to deliver the most relevant product, service, or experience to the right customer segment – is good for you and your customers. Simply put: personalization drives deeper customer relationships, positive brand loyalty and, ultimately, better financial results.
This is supported by the research report we sponsored with Harvard Business Review Analytic Services. Based on feedback from international, multi-industry executives, eight in 10 respondents say personalization is important to their organization’s strategy, and more than half say it is an important driver of their revenue and their profits. Even more, 81% stated personalization will significantly influence financial performance in 2020.
The report reveals several key opportunities for organizations across industries to power up their personalization efforts:
- Have the right tools + make measurement top-of-mind
- Push personalization beyond marketing
- Bring additional insights on board
Of all the stats, this one popped most for me – 90% of respondents indicated that customers expect organizations to know their interests and anticipate their needs.
We are seeing this every day, all around the world. A prime case are bespoke loyalty programs being created to offer convenient, beneficial and borderless opportunities. Consumers want greater flexibility. For example, at Mastercard, we are taking action with Mastercard Pay with Rewards and providing consumers the freedom and choice to use their rewards the way they want to – it’s your points, your way.
Having the right tools to derive insights is essential because insights drive value. According to the report, 70% of respondents cite data analytics as the most critical technology to enable personalization. We worked with a major retailer to combine artificial intelligence, our Test & Learn software and deep analytics and modeling to help them tailor customer rewards and build loyalty. The combined technologies allow them to predict and recommend unique offers to their customers across in-store and digital channels. A better, more tailored customer experience has led them to see increased customer redemption rates and incremental sales.
From personalized products and recommendations, to pricing strategies, online experiences or mobile applications, organizations need to continually assess and evolve their offerings to maintain a competitive advantage, foster greater customer loyalty and retention, and propel revenue.
For more on how personalization is critical to improving business performance, check out the full study here.