Always Relevant for Every Customer: Improve Loyalty and Customer Satisfaction

A satisfied customer is a customer who stays. But how can you achieve this as a retailer or e-commerce company? How do you remain relevant to the customer? The answer lies in first-party data, directly derived from your existing customers. Use that data to offer a personalized experience every time, and you will improve customer satisfaction. And thus, you will also improve the loyalty of your existing customers, acting as a catalyst for customer lifetime value.

Think back to your recent contact with a company. How did it go? Did you feel like the company genuinely cared about you? Or were you just another number, one of many customers in line? In the latter case, you may have wondered why you even ended up with this company. You might have even considered going to a competitor next time, where they hopefully communicate with you personally.

Sound familiar? You’re not alone. Research by McKinsey & Company shows that 76% of consumers are more likely to make a purchase from a company that uses personalization. That’s because that’s what the customer wants and expects. Not just now, in the digital age, but even before that. The seller in the physical store made sure to know his customers. He knew their preferences, remembered what people bought from him the week before, and tailored his conversations accordingly. The way he did it? It was customized for every customer, distinctive, and unique.

Personalization: it is the foundation for a successful business. Therefore, companies are investing in it, even digitally. A large portion of retail and e-commerce companies work with segmentation. The entire target audience is divided into an average of ten to fifteen smaller groups, each with its own customer journey for every type of customer. This makes the interaction more personalized, but still not personal enough for a dialogue with the customer. After all, with segmentation alone, you cannot move towards individual customer bonding, which requires a frictionless customer journey – and thus hyper-personalization.

As the business magazine Forbes has stated, no retailer or e-commerce company can avoid hyper-personalization. The necessary technology, intended for interpretation of customer data and based on artificial intelligence (AI), is now accessible to everyone. So, the question is: what’s stopping you? With hyper-personalization, your organization can work more concretely towards its own strategic goals. All of this is possible because relevance weaves like a red thread through the customer journey.