With the ongoing economic uncertainty, consumer brands must focus on sustainable growth and customer retention. The number one way to drive this is through personalization. However, there are certain misconceptions about personalization that can hinder your ability to build deeper connections with your consumers and grow your business.
In this article, we’ll demystify the most common personalization assumptions and cover strategies to personalize the ‘right’ way.
Reality: While pricing is an essential factor for consumers, it's not the only consideration for making a purchase decision. Consumers are increasingly looking for personalized experiences that go beyond the price tag. They want to feel valued by the brands they engage with. 56% of North American consumers prefer a curated shopping experience from the brands they shop from regularly. Similarly, 58% of consumers are frustrated when brands send generic and inconsistent communication.
Reality: Consumers don’t want to be bombarded with irrelevant or generic messages. Instead, they want customized and timely brand communication catered to their interests and needs. Here are some statistics from the Personalization Pulse Check 2023 report which showcase this:
Reality: Personalization doesn’t just include addressing a consumer by their name in your brand communication. There is so much more to personalization than that. You can personalize the customer experience based on buyer behavior, purchase history, content browsed, channel preferences, the best time to send communication, geolocation, etc. In fact, over 49% of North American consumers want brands to personalize their shopping experience based on purchase history and product/content preferences.
Reality: Consumers expect more personalized experiences and don’t mind sharing their information with brands. 67% of North American consumers are comfortable or slightly comfortable sharing their personal information with a brand to get a better customer experience.
Now that you know the reality behind some common misconceptions about personalization, you should focus on creating an exceptional customer experience. Here are some things to consider:
Personalization is no longer a buzzword but a critical component of customer retention. As a consumer brand, you need to move beyond the common misconceptions surrounding personalization and embrace it as a strategy to create relevant and valuable experiences for your consumers. Doing so can increase customer engagement and loyalty and ultimately drive sustainable growth. But remember, the key to building deeper connections with your consumers is leveraging the right insights and having a transparent relationship with them.
Grab a copy of MoEngage’s Personalization Pulse Check 2023: North America report to learn about more personalization misconceptions, trends, and strategies.