Hyper-personalization: how retailers can get more out of their existing customer database
Are you investing enough in your existing customers, or are you focusing primarily on acquisition? We won’t deny that attracting new customers is important for any business, but sometimes the focus on acquisition gets in the way of long-term success. That’s because while companies invest heavily in the acquisition of new customers, they tend to disregard retention and customer loyalty, the very area where they stand to gain the most.
From acquisition to customer lifetime value
To improve the bottom line, it’s necessary to broaden your focus from acquisition to customer lifetime value (CLV). Besides the fact that selling to an existing customer is 5 to 7 times cheaper than acquiring a new customer, existing customers also spend more. By investing in your existing customers, you turn consumers into long-term loyal fans.
Start with personalization
Consumers want to feel understood and helped by companies. The best way to achieve this is by responding to their individual needs and desires. More brands are recognizing this and have already taken the first steps through actions such as segmentation and the manual creation of marketing flows. This will get you a long way, but scaling up for hundreds of thousands or even millions of consumers is complex, labor-intensive or even impossible. True personalization on a 1:1 level unachievable in these conditions.
AI as the key to success
There is only one way to successfully deploy hyper-personalization at scale: AI. If you use an AI decision engine such as Inspire, it doesn’t matter how many customers you have, products you sell or channels you use. AI personalization technology is scalable, objective, self-learning and automated. Inspire enables you to develop a personally relevant journey for each customer, optimized for your business and goals.
And the best news? You can get started right away. There’s no need to overhaul your existing marketing systems and IT infrastructures. You can use Inspire even if you don’t yet have the marketing automation or CDP in place to give you a fully detailed 360-degree customer view. AI personalization will enable you to get more out of your existing customer database by starting with low-hanging fruit and using available data. That’s essential for improving the customer experience, fostering loyalty, and increasing your retention rate.
Download the free white paper
Would you like to know how to approach this, and what Inspire can do for your business? Download the white paper with three essential lessons to significantly improve conversion and customer loyalty with AI-driven 1:1 personalization. Click here, and receive the white paper in your inbox within minutes.