What is Personalization and Why Does it Matter in 2022?
According to research, 76% of consumers get frustrated when personalized interactions don’t happen to them. What is personalization and why does it matter in 2022?
It feels good to be remembered. It feels good when the business you patronize remembers your name. It feels good when you don’t have to repeat yourself after every transaction as a customer because they already have data about your previous purchases.
It feels even better when in the future the brands you interact with offer you products and/or services that are relevant to your needs and preferences. That there’s value in the content they’re delivering— content that you’d actually want to read and use.
All of these are benefits of personalization— which is why almost 90% of online businesses invest in it.
So what is personalization and why does it matter in 2022?
What is Personalization
Personalization is the process of designing and producing a product and/or service that meets a target customer’s individual requirements.
For example, when sending emails, instead of a generic greeting like “Dear Customer,” you’d use the target customer’s name like “Dear Anna” or “Hi Joe!” to make it sound like the email was specially written for them.
Another example is sending a promotional email that is hyper-relevant to their needs. So a customer that is interested in, for example, automobiles, will receive future content about the subject matter. And another customer that’s interested in, for example, agriculture, will receive future content and topics based on that specific interest.
Personalization guarantees that the person receiving the email will open the email because they’re interested in it and they’re more likely to find value in it.
There are many examples of personalization and it has more application in business than just email. But using email automation for personalization is a good way to start for many businesses.
Why Personalization Matters in 2022
Personalization is one of the top business trends in 2022. Why does it matter this year? Let’s investigate.
● There’s a surge in digital behaviors during the pandemic
McKinsey’s Next in Personalization 2021 Report revealed that around 75% of consumers tried a new shopping behavior in the previous months— and more than 80% of them intend to continue with these behaviors.
These new shopping behaviors include trying a new store, product, or buying method. Many of them switched to online interactions to overcome restrictions on physical mobility.
● Consumers now expect companies to deliver personalized interaction
There are things that matter to customers the most. In 2022, one of them is personalization.
According to the same research conducted by McKinsey, 71% of consumers expect companies to deliver personalized interactions— expecting businesses to recognize them as individuals and know their interests, and, in general, make them “feel special.”
● Companies grow faster with personalization
McKinsey also found that consumers considered a brand due to receiving personalized communications (76% of surveyed respondents) which made them more likely to repurchase (78%).
The company also found that personalization results in a 10 to 15% revenue lift. The company however cautions that skill in applying data is required for greater returns.
This helps businesses generate better long-term customer lifetime value and loyalty, which overall drives business growth.
● Consumers are willing to provide data for personalization
More than ever, consumers are willing to provide their own data for personalized offerings.
According to 3radical’s 2022 Consumer Survey Report, 54% of consumers signified their willingness to exchange their data for tailored offers and promotions— as long as brands are transparent (84%) about what information they collect and how they will use them.
Make Personalization Part of Your Business
The best way for you to start with personalization is to use software that allows you to collect consumer data and implement personalized interactions with ease. Want to know more about this type of technology? Get started here and see how far personalization can take your business.
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