5 Ways Personalization Drives Sales Success

For many companies, personalization remains a top priority in this new year. Many brands are achieving this goal by offering stronger service and personalized content through artificial intelligence and geolocation. However, the human touch should not be underestimated: From customer service agents showing empathy to salespeople making recommendations in-store, personalization starts with an authentic human connection. Here are five ways personalization impacts customers’ purchasing habits and drives sales success.

They spend more

Offering personalized content motivates customers to spend more than they had anticipated. According to the E-Tailing Group, increasing personalization on more channels can increase overall consumer spending by up to 500%. While an omnichannel approach is essential to connecting with more customers, always remember to offer customers better service and content on their preferred channels for greater customer satisfaction.

They make impulsive purchases

Personalized recommendations often compel customers to buy products they had not even intended to purchase. According to a survey by Segment, 49% of customers have made impulse purchases upon receiving personalized recommendations. Your company may make these recommendations within a brand app, use chatbots to generate recommendations within messaging apps, or train employees working at physical stores to sharpen their cross-selling and upselling skills.

Ebook Personalization

They keep what they buy

The same survey found that once customers make purchases, they tend to keep their items. 85% of customers claimed to be happy with their impulse purchases, and only 5% of the items were returned. If your brand makes an effort to closely match products to your customers’ tastes, their satisfaction will increase.

They become loyal customers

When customers feel that your brand is paying attention to their needs, they tend to become loyal. A Wunderman study found that 56% of customers feel more loyal to companies that demonstrate a deep understanding of their preferences and priorities. In addition, 79% stated that brands must show this understanding before a purchase is even considered. Making your customers’ lives easier by anticipating their needs is a sure way to win their loyalty.

They feel an emotional connection to your brand

Ultimately, personalization makes customers feel more emotionally connected to your brand. This, in turn, leads to greater sales and customer retention rates. According to Harvard Business Review, customers who feel “fully connected” emotionally are 52% more valuable to brands than those who claim to be “highly satisfied.” In addition, Wunderman reports that 89% of customers are loyal to brands that share their values. When your brand creates engaging, authentic content tailored to customer profiles, your brand projects a humanized identity to which customers can relate. Personalization is key to fostering long-term relationships with your customers. From addressing them by name to offering in-depth support for their individual needs, a personalized approach should be integrated into every omnichannel experience for maximum customer satisfaction and brand growth.

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