With more brands competing for customers’ attention and money, customer experience is becoming increasingly important.
In fact, a survey by Broadridge Financial Solutions Inc found that 65% of shoppers in the US and Canada feel companies need to improve their overall customer experience.
At the same time, 77% said they will spend more with a company that provides a good customer experience.
Investing in building a better customer experience is a major competitive advantage in today’s retail. Notably, Gartner reported that 86% of professionals engaged in or leading CX expect to compete based on customer experience.
Personalization Matters More than You Think
One way to achieve this is through personalization. A study by PYMNTS found that one-third of consumers will spend more with brands that they have a relationship with.
Customers are actively looking for retailers to provide this. The tech that improves personalization and product recommendations was a major want by UK consumers in a survey by Klarna. In fact, 80% of UK shoppers think retailers need to invest in new technology.
Relevancy is key in all interactions with brands and retailers. A survey of US consumers by Optimove found that 63% dislike receiving irrelevant messaging from a retailer. Plus, 47% will unsubscribe from a retailer's promotional messages if they get too many messages.
This makes sense. If you send customers too many messages that aren’t relevant to them, they won’t see any value in the communication.
Unfortunately, retailers aren’t giving customers what they want. 24% of UK retailers surveyed by MoEngage said they only use basic customer data – like name or location – for personalization.
This means there is a massive opportunity for retailers to get ahead by investing in things like clienteling tools and recommendation engines to build a more personalized customer experience.