Personalization - knowing how: How brands skillfully stand out from the crowd in the current times

The current pandemic shows that digital transformation is not a fad, but essential to survive as a company. Although the top priority in the current situation is to keep operations running, many companies and entire industries have had to switch to a purely digital business model in a matter of weeks.

A recent study by McKinsey shows that customer behavior has changed dramatically with the transition to purely digital retail. In Italy, an increase in e-commerce sales of consumer goods was recorded in just one week by 81 percent recorded. It is likely that many will maintain a digital-first mindset long after the pandemic is over. In China, for example, the number of people who say they will switch to online shopping permanently has increased, already increased by 55 percent. It is therefore crucial, both now and in the coming years, to offer high-quality online experiences and meet the needs of customers in order to win their loyalty.

Communicate effectively thanks to personalization

One area of customer experience that brands should be focusing on right now as part of their revamped online offering is personalization. Before the pandemic, personalization made e-commerce experiences easier, faster and more convenient for shoppers and created an emotional connection with a brand. Now, more than ever, it is an essential component of e-commerce. Customers who previously would not have opted to use a digital offering now have no other choice. Companies are therefore faced with the challenge of communicating equally effectively with inexperienced and experienced digital users at the same time.

A survey by SoDA commissioned by Sitecore shows that while the majority (85%) of senior marketers see personalization as a major competitive advantage, less than a quarter (23%) are able to personalize beyond a basic level. Most marketers are also unsure how to leverage available data and technology to use personalization in a more differentiated way. There are a number of steps that can help brands optimize their own personalization activities and keep pace with advancing technology.

For every personalization project, brands should start with a single, clearly defined customer segment. Selected approaches should be continuously tested and refined. Approaches that work can then be extended to other customer segments. Even simple personalizations can lead to strong sales.

Another step would be to consider the customer journey, as successful personalization begins with an understanding of this. Creating a map of the customer journey for your own company often proves to be very informative here. Such a map should show all the ways in which customers want to get in touch with the company via digital channels, which questions they ask in the individual phases of the customer journey and where their questions were answered.

Recognize and use customer wishes

A good way to offer customers what they need is to look at the customer journey from the perspective of the target audience. For example, the content a customer sees can be adapted according to their usage history, geolocation or whether they are a returning customer or visiting the website for the first time.

Customer interactions offer brands valuable insights. They are therefore essential for efficient personalization. While interacting with customers and prospects, brands should collect and analyze all the data they receive through these channels. With each data element collected, the opportunity to create an even more compelling digital experience increases.

In addition, as part of any company's personalization initiative, careful consideration should be given to how to communicate with the market. The ability to communicate concerns in a simple, straightforward and transparent way, without using jargon, is one of the keys to personalization.

It is unclear how the current pandemic will change the interaction between companies and customers. What is clear, however, is that e-commerce is constantly evolving and brands are increasingly adopting a digital-first approach. Personalization will therefore remain an important way to meet customer demands in our "new normal" and provide customers with the customer experience they expect.