Understanding the Growing Demand for Personalization in Digital Business
In the digital age, customers have increasingly high expectations for personalized experiences and customer service from businesses. A recent eMarketer report highlights the change in attitude of consumers towards personalization and customer experience between 2020 and 2022. With the growing importance of tailored experiences in digital business, companies need to incorporate personalization into their strategies to meet the needs of their customers. This Article explores why customers expect personalized digital experiences, the importance of personalized experiences for digital businesses, consumer comfort levels with personal information, types of personal information consumers are willing to share, and how marketers can use personal information to create a customized experience.
2020 vs 2022 change in attitude of Consumers Worldwide Toward Personalization and Customer Experience Provided by a eMarketer
According to a 2022 Salesforce report, 73% of consumers expect companies to understand their unique needs and expectations, while 62% think businesses should anticipate their needs. These figures are a significant increase from 2020, indicating the growing importance of personalized experiences in digital business.
Why Customers Expect Personalized Digital Experiences from Businesses
Customers expect a personalized digital experience because it makes them feel valued and understood by the brands they engage with. By providing tailored experiences based on individual preferences, businesses can build strong emotional connections with their customers, leading to greater loyalty and repeat business. Moreover, customers understand that brands use personal data to craft and deliver tailored messages. A February 2022 Merkle study found that nearly 9 in 10 respondents are likely to enjoy receiving personalized offers based on their interests and browsing/purchase history. About the same number of customers are willing to provide more information after a positive experience with a brand, especially if they receive custom offers or products tailored to their interests.
The Importance of Personalized Experiences for Digital Businesses
Incorporating personalization into a digital business strategy has become essential to meet the growing demand for personalized experiences. By leveraging customer data and insights, businesses can create personalized content, recommendations, and offers that cater to each customer's unique needs and preferences. By doing so, businesses can improve customer satisfaction, loyalty, and retention rates, leading to higher revenue and growth opportunities. Moreover, personalized experiences can help businesses stand out from the competition and create a competitive advantage in the market.
Consumer Comfort Levels with Personal Information
According to a September 2021 survey conducted by Sapio Research for Airship, consumers are more comfortable sharing their email address and name than their address or phone number. This comfort level varies based on data types and generation. Not surprisingly, younger consumers, including Gen Z adults and millennials, are more comfortable sharing all forms of data than their older cohorts. This information is vital for marketers to understand as they tailor their personalized communication and offers.
Types of Personal Information Consumers are Willing to Share
The same study revealed that the types of personal information consumers are willing to share vary by generation. Gen Z is willing to share more personal information, with 73% of Gen Z adults willing to share their mobile number for text messages, compared to only 49% of Baby Boomers. Similarly, 56% of Gen Z adults are willing to share their browsing history on a brand's website or app, while only 44% of Baby Boomers are comfortable sharing that information. Marketers need to tailor their personalization strategy based on the data types that each generation is willing to share.
Using Personal Information to Create a Customized Experience
As consumers become more comfortable with sharing personal data, marketers can use this information to create a customized experience. Personalization involves delivering a tailored experience or communication to an individual using information a company knows about them and their needs. By analyzing consumer data, marketers can anticipate their needs and provide personalized offers that meet their unique expectations.
However, it's important to exercise restraint and only use the personal information that consumers are comfortable sharing. Marketers must respect consumer privacy and avoid causing discomfort by overusing personal data.
The change in attitude of consumers towards personalization and customer experience has been significant between 2020 and 2022. With customers expecting businesses to understand their unique needs and preferences, incorporating personalization into digital business strategies has become crucial. By leveraging customer data, businesses can create personalized content, recommendations, and offers that cater to each customer's unique needs and preferences, leading to higher customer satisfaction, loyalty, and revenue.
However, it's important to respect consumer privacy and only use personal information that they are comfortable sharing. As consumers become more comfortable with sharing personal data, marketers must tailor their personalization strategies based on the data types that each generation is willing to share. Overall, personalization has become an essential aspect of digital business, and companies that can provide tailored experiences will have a competitive advantage in the market.
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