The holy grail of marketing is creating powerful customer experiences, in order to create deep relationships that will drive brand loyalty. This is what every marketer out there is striving to achieve.
Unfortunately most of the martech solutions brands are using to create those experiences are only creating incremental improvements:
Ultimately, the consumer is left with the same poor experience, offers are transactional and brands are losing market and wallet share. In fact, 33% of consumers say the offers they receive are not relevant and 75% of consumers have tried new brands in COVID due to a poor customer experience.
And customers are having poor experiences - basic personalization techniques, like different types of creative or adding someone’s name to an email, are having little impact on consumer retention or driving brand loyalty. In fact, consumers are actually deleting huge amounts of what brands offer. Based on a recent study of more than 1000 consumers in the U.S.:
The data is there for brands to create these kinds of customizations, and brands are actively asking their customer base to share their personal information. However there is a difference between asking for the information, and activating it in ways that create truly personalized experiences for consumers. Nearly 60% of respondents believe they’re getting the same offers as their peers, even though they have different shopping habits and preferences.
In addition to being unimpressed by mass offers, modern consumers are demanding speed from brands in how they utilize the data that has been provided through purchases, loyalty programs or other means. When they provide their data, over 50% of consumers expect it to be used in personalized offers within a week of it being provided. But based on the amount of offers that are being deleted, clearly that activation of data is not happening.
There is some good news though. The survey also showed that consumers are positively influenced by personalization when it goes beyond simple creative changes or adding a consumer's name to an email subject line:
This means that brands do have a chance to positively influence their customers' loyalty and retention, if they put the right tools in place to personalize the elements consumers actually care about. In order to build relationships with the modern consumer, brands need technology that enables them to adapt to changing market conditions fast. In order to stay competitive with digitally-native companies, brands must think like technology companies, and completely revamp how they address retention and loyalty.
Learn more how dynamic offer optimization enables brands to get personalized offers to market faster, with less operational overhead and achieve higher ROI from their campaigns.