Personalisation and humanisation have emerged as the two fundamental pillars that underpin a successful customer experience (CX) strategy.
By Olatayo L-Ajai, regional manager for West Africa at Infobip
As retailers strive to create memorable and engaging experiences for their customers, understanding the core elements that contribute to effective personalisation has become increasingly crucial.
This is especially critical as retailers now enter into peak shopping season globally, with the likes of Black Friday and the festive season approaching.
Core elements of successful personalisation
Personalisation within CX begins with a deep understanding of the customer. It’s essential for retailers to identify who the customer is, their preferences, and their behaviours. This foundational knowledge allows them to tailor their services and offerings to meet individual needs effectively.
However, personalisation is not just about knowing the customer; it’s also about ensuring consistency across all channels. This omnichannel approach means that whether a customer interacts with a website, a social media page, or a mobile app, the experience remains seamless and uniform. The digital and physical CX should mirror each other, reinforcing the brand persona and values at every touchpoint.
Another critical aspect is customer support. Personalisation extends beyond product sales or brand engagement; it encompasses how customers are supported throughout their journey. Effective customer support ensures that the personalisation process is complete, providing a holistic and satisfying experience for the customer.
To determine the effectiveness of a personalised CX strategy, retailers need to track a variety of metrics. Engagement metrics are a primary indicator of success. By measuring how customers interact with the brand, companies can gain insights into loyalty and the effectiveness of their personalisation efforts. For example, an increase in customer interactions through mobile apps or social media platforms can indicate heightened engagement.
Revenue growth is another crucial metric. A well-implemented personalised CX strategy often leads to higher sales and faster customer acquisition rates. In addition to revenue, tracking customer churn and lifetime value provides insights into customer loyalty and the long-term benefits of personalisation. Lower churn rates and higher lifetime value indicate a successful strategy that fosters lasting relationships with customers.
Best practices for an effective CX strategy
A successful CX strategy that delivers on these metrics is underpinned by robust data management and governance. As customer data grows, it is important for retailers to ensure its protection and proper handling, giving customers confidence that their information is secure.
Consistency across all touchpoints is essential. Personalisation efforts must ensure that every interaction a customer has with the brand is uniform, reinforcing a coherent and positive image. Customer segmentation is also critical; understanding that customer preferences and behaviours evolve over time allows retailers to continuously adapt their personalisation strategies.
Additionally, testing and measuring the impact of personalisation strategies are essential for continuous improvement. By analysing data and customer feedback, retailers can refine their approaches to ensure they meet customer expectations effectively.
Avoiding Pitfalls in Personalisation
Despite its benefits, personalisation can fail if not correctly understood or implemented. A common pitfall is the lack of a clear understanding of the definitions and goals of CX and personalisation.
Retailers should start with a clear identification of who their customers are, how they will serve them, and through which channels. Inconsistency across different channels can also undermine personalisation efforts, making it crucial to ensure identical experiences across all platforms.
Another significant challenge is the effective use of data. Retailers must leverage data insights to inform their strategies and act on customer feedback promptly. Without the right tools and processes, it becomes challenging to develop an effective personalised CX strategy.
A winning CX strategy is one that deeply understands the customer, ensures consistency across all channels, and uses data effectively to drive continuous improvement. By focusing on these core elements and avoiding common pitfalls during the looming peak shopping season, retailers can create a personalised and humanised CX that not only meets but exceeds customer expectations, fostering loyalty and driving business growth. As the market evolves, staying attuned to customer needs and preferences will be the key to sustained success in CX personalisation.