Personalisation is a great way to create amazing customer experience. Most companies realise that they can implement personalisation to increase customer engagement, but they don’t go further than addressing their customers by their names in emails.
However, research conducted by Pure360 revealed that only 8% of customers are likely to engage with emails that address them by name. Basic personalisation is not an effective strategy to increase customer engagement. Research by Infosys supports this, as they found that 31% of surveyed consumer say they wish their shopping experience was far more personalised than it already is. A Deloitte study found that customers don’t only want personalised communication, but product and services that are tailored to them.
Spotify has found a new way of personalising their service. Mood and moments playlists used to be curated by people, but now they’re automatically adapted to the listener’s taste. No two playlists are the same. The streaming service decided to implement the change after a successful trial in 2018. During that trial, they discovered that users listen 30% longer to personalised playlists.*
Spotify isn’t the only company to see the value in personalisation. Nike and Adidas have also used it to create great customer experience. In Berlin, there was a Nike Knit for You pop-up store, where customers could design their own knitwear and laser scanners made sure the garments were the perfect fit. In New York, you can walk into an Adidas store and have a shoe designed and produced right then and there.
Function of Beauty has been getting a lot of attention lately, due to their unique way of making their products. The hair care company asks you to give them your hair profile, so they can make shampoo that’s specifically adapted to your needs. First they want to know more about your hair. What is its texture? How often do you have to wash it? How thick is it? After that you tell them your hair goals. You can choose five out of eighteen different goals, including anti-frizz, heat protection and hydration. Lastly, you can choose the colour, scent and name of your shampoo.
Function of Beauty’s formula is successful. The New York based company was only founded in 2015 and is already expanding to the international market. They’ve started shipping to Canada, the UK and many European countries, including Belgium.
Personalisation is more than addressing customers by their name or sending them a birthday email. While we’re not saying you shouldn’t do that anymore, it doesn’t stop there. Offering your customers a truly personalised experience makes them more engaged. Hello Customer can help you figure out what exactly your customers want and expect from your organisation, by gathering and analysing feedback. That way, you can find new ways to implement next level personalisation. If you're interested, don't hesitate to get in touch!
*A little disclaimer, not all playlists made by Spotify are personalised. The most popular playlists, like “Today’s Top Hits” and “Rap Caviar” are still made by people.