Let’s take a look at the importance of personalising your interactions, and the benefits of doing so for customer engagement and loyalty.
Your customers want and expect a personal touch
Research shows that customers all over the world value personalised service and interaction with companies. Consumers nowadays are willing to pay more for products and services from brands who treat them as human beings, not just a source of profit.
81 per cent of Australian consumers prefer dealing with human beings over digital channels.
There’s a lot more capacity for automation today, and as a result, we’ve descended into human-less customer service for the sake of speed and efficiency. In the process, we’re losing that human touch that our customers crave.
Accenture research shows 81 per cent of Australian consumers prefer dealing with human beings over digital channels. When it comes to obtaining advice, 81 per cent again would rather deal with human beings.
Personalisation is particularly important to younger consumers; the Deloitte report “Customer loyalty: A relationship, not just a scheme” reveals personalisation and relevance are more important among those aged 18-24 compared to other demographics. In other words, if you want to keep young Australians loyal to and engaged with your brand, give them that human touch they’re after.
Clearly, the desire for personalised service is there. If you’re wondering why you’re not retaining customers, it could be because you’ve focused too much on automation and too little on ensuring you provide them with the personal interaction they need to remain loyal.
Personalised customer service is appreciated by the majority of Australians.Although we live in a digital world, the majority of Australians still prefer dealing with human beings over digital channels.
Australian customers pay more for personalisation
By giving your customers what they want, personalisation benefits your business in the long-term. Your customers are the ones paying for your products or services, so keeping them happy is critical to the future of your business. It – literally – pays to give them what they want. A Deloitte report titled “Made-to-order: The rise of mass personalisation” revealed that one in five Australian consumers would pay a 20 per cent premium for more personalised offerings. Subsequently, the research concluded that businesses have an opportunity to charge more for premium offerings.
48 per cent of Australian consumers are willing to pay more for customer service that is more personal.
The findings of this study are corroborated by Accenture research, which found that 48 per cent of Australian consumers are willing to pay more for customer service that is more personal. Accenture found the majority of Australian consumers prefer dealing with a real person to a digital channel when trying to resolve a customer service issue, and that more than half have switched to a competitor as a result of poor customer service. By offering great customer service and showing your customers that you care about them in a genuine way, you’ll be more likely to keep customers loyal to you and reap the benefits of their ongoing business.
The Commonwealth Bank has also conducted research into customer loyalty in Australia, and come to conclusions that also support the idea that offering more personalisation equates to a higher level of customer loyalty. The bank found that:
- 84 per cent of Australians are more likely to buy from a store they feel connected to.
- 82 per cent will spend more time in a store if they feel like a valued customer.
- 74 per cent would stay loyal to a business that offers personalisation.
Clearly, Australian consumers are likely to be more loyal to your business and willing to pay a higher price if you offer them a human touch. This equates to business success for you. Chief Marketer has found that personalisation encourages repeat customers and creates brand ambassadors.
When you have customers who love your brand and are highly engaged with it, you’re more likely to increase your wallet share with them, meaning they will go to you rather than your competitors for the same goods or services. They’ll also become firm advocates for your brand, which saves you on marketing costs, because word-of-mouth is free!
Personalisation gives you an edge over your competitors
So we’ve seen that personalisation is important for customer loyalty and the enduring success of your business. A related component of this is that you’ll get a leg up on your competitors.
Find personal communication strategies that will help you stand out in a competitive landscape.
By departing from the standard customer service offered by other companies within your sector, and engaging with your customers on a more human level, you’ll make your business stand out from the crowd. Consumers will see you as a company who cares about them and values their business.
Interact with your customers’ social media posts, share their content, tailor your email greetings and be quick to respond to questions and complaints and your efforts will be noticed. You’ll start to gain a reputation for treating your customers like the people they are.
PCWorld Australia recommends finding personal communication strategies that will help you stand out in a competitive landscape. One such strategy it suggests is adopting new technologies, as this could help you enhance the shopping experience for your customers. Another strategy PCWorld Australia recommends to give you an edge over competitors is re-engaging customers who become distracted and leave a session to move to another device. By adopting a cross-channel and cross-device marketing approach, you can utilise browse data to re-engage potential customers with personalised offers when they switch devices.
Let Muulla help you get up, close and personal with your customers
The importance of personalisation for customer loyalty is that it enables you to really connect with your customers in ways they love. And by engaging them and keeping them coming back for more, you’re getting more of their business. Going about this can seem tricky if you don’t know where to start, but Muulla can help.
Muulla recognises that loyalty programs need to evolve past the traditional card-based model and meet customers on the digital platforms they use the most. It leverages customer insights to create loyalty platforms that deliver rewards, incentives and engagement opportunities customers truly want: personal, human service.
If you want to ensure your customer loyalty program gets up, close and personal with your customers, get in touch with Muulla today.