From Netflix to Nike, customers are surrounded by hyper-personalization every day. They have come to an extent when they expect the same personalization level from companies of all sizes. Investing in hyper-personalized solutions to build long-lasting relationships and create seamless experiences can pay off with severe brands' rewards.
While the vast majority of companies are focused on improving customer experience through personalization, companies that don't prioritize creating an omnichannel experience run the risk of getting left behind by losing revenue and customer loyalty.
Since customers become both critics and experts, they demand more personalized service and expect to be involved in the process of products and services they consume.
According to Accenture, more than 90% of consumers say they are more likely to shop with brands that provide offers and relevant recommendations. Furthermore, Deloitte's research shows that more than 70% of consumers expressed interest in customized products or services in some categories. Not only are they willing to pay more for a personalized product or service, but they would also like to be actively involved in the process.
Hyper-personalization has become the ‘new normal’
Hyper-personalization has become the ‘new normal’. With the advent of digital, modern manufacturing processes and technology, personalization reached the next level. Businesses have developed the capabilities to precisely measure what each consumer wants and link their processes and resources to provide it.
Therefore, delivering personalized products and experiences can provide ‘paybacks’ for both the business and the consumer.
Hyper-personalization enables businesses to demonstrate the value consumers get from their data being used. At the same time, enterprises gain a more in-depth insight into consumer behavior. It also allows businesses to simplify their product and service range, which means lower marketing and production costs while creating more predictable demand. Besides, it makes it easier for consumers to understand the offer while getting better value for money.
As a result, personalization will help reduce costs, offer a path to sustainable growth, and improve efficiency. For many businesses, the priority is to connect the dots between multiple platforms and devices to develop a more comprehensive view of their consumer profiles to personalize the shopping experience further.
More and more companies are heavily investing in the right capabilities to boost innovation and personalization, such as digital commerce, machine learning, artificial intelligence, and 3D printing, all making personalized product and service offerings more cost-efficient.
According to the Deloitte research, around 60% of consumers are concerned about the number of information businesses hold about them, and, currently, only one 22% is happy for companies to use their information to offer them personalized products or services. However, based on the recent BRP Consulting’s study, around 70% of consumers are okay with retailers saving their purchase history and preferences if it allows them to offer more personalized experiences.
Luckily, more companies secure their customers' data and are highly concerned about privacy and regulations.
For instance, Revieve adheres to the strictest privacy and data security standards. We operate a secure, enterprise-grade CCPA, and GDP-compliant infrastructure for data transmission, processing, and storage with relevant encryptions, safeguards, and practices to ensure the protection and privacy of any data. We never sacrificed on our customer data!
According to Statista data, almost 94% of U.S. respondents find personalization experience very appealing. Therefore, businesses that embrace personalization have an opportunity to create a differentiated proposition that may command a price premium and improve consumer traffic and conversion.