How Personalisation Improves Customer Retention

June 21, 2019 - Reading Time: 3 minutes

Loyal customers are the bedrock of every successful business. It is easier to convince a previous customer to buy your product or service than to persuade someone completely new. In fact, it costs five times more to attract a new customer than to retain an existing one. Personalised marketing helps your brand stay relevant to existing customers, thereby retaining them.

Personalised marketing is the use of artificial intelligence (AI) to collect and analyse data in order to deliver individualised content to customers. Netflix, for example, customises recommendations based on user behaviour and viewing history.

Here are some ways you can incorporate personalisation into your marketing strategy.

1. Email Marketing

Customers are more likely to open an email that speaks directly to their wants and needs than an email that is generic. Personalisation doesn’t just increase the chances of your marketing email being read, it also increases the likelihood of conversion. According to a survey by Infosys, 86% of consumers say that personalisation has some impact on what they purchase.

ZALORA, one of Asia’s biggest online fashion retailers, evidently understands this well. The company uses data on their customers’ purchase history to notify them when their favourite brands are on sale. They recommend new products to customers based on their previous purchases.

2. Content marketing

Creating personalised experiences can make customers feel appreciated and create a positive image for your brand. Customers who feel valued tend to be more loyal.

Spotify: Personalised Playlists

Spotify is a great case study. The music streaming company is constantly working to improve and implement new individualised music experiences for users. Just early this year, Spotify announced that it would be personalising mood- and moment-related playlists that were previously human-curated. This decision came about after the company discovered that users listened to personalised playlists for longer periods of time, with many proceeding to seek out their favourite tracks for repeated listening. Spotify has also been actively boosting user engagement by sending individual users a compilation of their most-streamed songs at the end of the year.

Personalisation has helped Spotify retain users as well as set itself apart from competitors like Apple Music and Pandora.

Nike+: ‘Our Year’

Nike+ is a mobile app that tracks and documents users’ workouts. As part of Nike’s efforts to build user engagement, the brand sent its users personalised videos reviewing their fitness progress over the past year.

It might seem like a small gesture but it will go a long way in making customers feel seen and valued.

Furthermore, personalised content – like what Spotify and Nike have done – are highly shareable. This provides brands with higher visibility on social media which in turn helps boost brand awareness.

3. UX Design

UX Design is an important aspect of every website, particularly so for e-commerce websites where it could make or break a sale. The success of an e-commerce business hinges upon the ease of purchase. A website that remembers the details of existing customers – such as delivery and billing addresses – makes future purchases hassle-free. Be that as it may, companies should still give customers the option to choose whether they would like their details saved due to privacy reasons.

Advancements in data mining technology and automation have empowered marketers to personalise marketing messages according to the needs and wants of individual customers. The goal of marketers should be to help customers see the relevance of their product or service; it is to say to the customer: “I have what you want”. Customers will stay with brands that they perceive they need.

It’s time to get personal.

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