Consumers no longer buy from companies that offer the same generic experience to all of their customers. Businesses worth their weight now recognise the value of personalisation and are similarly no longer satisfied with providing the same generic experiences as everyone else.
Personalisation has become part of our everyday lives, we no longer watch the same TV shows at the same times as the rest of the country, we watch what our Netflix algorithm thinks we will enjoy. And we love it. We no longer listen to the radio, but what is on our Discover Weekly on a Monday morning.
More than 70 percent of consumers now consider personalisation a basic expectation. There is a value exchange taking place which consumers recognise.
As a result of a better experience to be had, consumers choose products and services with personalisation over those that don’t. They spend more over a longer period of time and they are more loyal.
According to McKinsey, personalisation usually drives around 10 to 15 percent revenue lift. Greater gains are seen when companies become more advanced in organising and applying the wealth of data that they are able to collect, using this customer knowledge across the entire journey.
Companies that excel at personalisation generate 40% more revenue from those activities than the traditional tactics they run alongside.
McKinsey believes that personalisation, at scale has the potential to create $1.7-$3 trillion in new value for brands across the globe over the next 5 years.
Personalisation is especially effective at driving repeat engagement and loyalty over time. Recurring interactions create more data from which brands can design ever-more relevant experiences—creating a flywheel effect that generates a strong, long-term customer lifetime value and loyalty.
76% of consumers are frustrated when they receive a generic experience.
If consumers don’t like an experience, it is easier now than ever before to choose a different offering. 72% of consumers said they expect the businesses they buy from to recognise them as individuals and know their interests.
Long Term Growth
So, we’ve addressed how personalisation drives revenue and loyalty, but it is also an accelerator of revenue when done correctly. Companies with the fastest rates of revenue growth are far more likely to prioritise personalisation in their tactics than those who don’t. These tactics lead to better experiences which results in recommendations, a driver of exponential growth.
78% of consumers are more likely to recommend a service to family or friends when they receive a personalised experience.
When consumers are faced with so much choice, even small shifts in improving customer intimacy by showing that you know them and using this knowledge will shape a positive experience, creating a competitive advantage.
Companies who are leading the charge with personalisation are achieving success by tailoring their proposition and customer journey to speak not only to the right person, but also at the right time with the right experience for you.
Personalisation isn’t something you do for your customers, and it isn’t just a 'nice to have'. Personalisation has a direct impact on revenue, loyalty and growth. It is a key driver for business success in the data driven world.
Newer, digital first companies, have data baked into their value proposition whereas more traditional businesses need to put effort into finding all of their data sources and bring it together under one roof. Data alone is worthless, it’s organising it and knowing what to do with it operationally that brings value.