The world is seeing a change in how consumers respond to advertising. Everyone is being bombarded with thousands of irrelevant ads daily. Companies that provide the most effective personal experience will gain the competitive edge in the market. We're going to discuss a few reasons why customer personalization must be part of your long-term marketing strategy.
More Revenue
Creating a unique experience for your current customers can lead to an increase in revenue. Did you know acquiring a new customer costs five times as much as retaining current ones? It's to your advantage to create a strategy that keeps current customers returning. By focusing on creating a personalized experience, you're going to retain more customers. Keeping current customers will ultimately lower your acquisition cost per customer.
Customer Loyalty
Personalizing the consumer experience is one of the major factors in creating customer loyalty. Amazon generates 35% of its revenue through recommendation engines. This means whenever you shop at Amazon, you can expect Amazon will provide you with recommendations based on your search history and online activity. Loyal customers can become raving fans that tell other people about your service.
Organic Marketing
Creating a unique customer experience can be used to fuel word of mouth for your business. Nielsen study reveals that over 80% of Americans seek recommendations when making a purchase of any kind. The majority of people will be interested in using your services based on what current users say. By providing a tailored experience, you're creating the opportunity to give customers memorable experiences in which they willingly share.
Alex Brooks is the founder and CEO of AE Brooks, LLC (d/b/a, Entreprov), a small Seattle-based firm that helps small and medium sized businesses increase their customer base and retain current customers through machine learning and business strategy.
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