In 2021, the Next in Personalisation 2021 Report from McKinsey& Company found that companies that excelled at demonstrating customer intimacy had faster revenue growth than their competitors. The closer businesses get to the consumer, the more they profit.
Personalisation is not only a necessary skill, but one that punches well above its weight whether the business is a digital native, a physical presence, or an in-house producer or supplier.
Consumers demand personalisation, and they won't settle for anything less. Consumers are looking for more flexibility in return. Roughly 75% of customers have attempted a new shopping habit in the last 18 months, with over 80% of them continuing to try new habits.
Furthermore, the study found that top-quartile personalisation performers earn 40% more revenue than average competitors. Personalisation initiatives at the top quartile in the United States would add over $1 trillion to the economy. Players who are leaders in personalisation achieve results by tailoring products and outreach to the right individual at the right time with the right message.
Digital marketing has been a boon to personalisation because of its ability to target consumers with laser precision and track their interactions to see what's working. But as personalisation evolves, it will encompass not just digital but all channels, including in-store experiences. In fact, the most important trend in retail today is the blurring of the lines between the physical and digital worlds.
These seven graphs illustrate how consumer opinions on personalisation are evolving and what outperforming corporations are doing to increase customer lifetime value at scale.
Personalisation matters more than ever before
Since the start of the epidemic, online interactions have been increasing at a rapid rate—expectations have risen and everyone else has to pick up the pace. From web to mobile and in-person interactions, consumers now consider personalised interaction to be the norm for connection. The survey discovered that 71 percent of customers want personal interactions from businesses. When this does not happen, 76% of consumers become irritated. It's getting more difficult for companies to keep the customers happy than it's ever been because three-quarters of people switched stores, goods, or buying techniques during the epidemic
Research shows shoppers have a strong point of view on personalisation
Consumers want companies to know them as individuals and understand their interests, according to 70% of respondents. When asked to define personalisation, people think of pleasant experiences of being treated as exceptional. They react favourably when brands show that they care about the connection rather than just the transaction. Positive brand impressions are generated by thoughtful touchpoints such as checking in after they have purchased, sending a how-to video or asking consumers to write a review generate positive brand perceptions.
And consumers reward those that get it right
Personalised content is especially useful for encouraging repeat engagement and loyalty over time. Personalisation is particularly effective at generating recurring interactions that produce more data for marketers to create ever-more relevant experiences, resulting in a flywheel effect that generates very substantial long-term customer lifetime value and loyalty.
Performance propels outperformance
According to the recent study, most businesses revenue increases by 10% to 15%, with sector and ability to execute driving the remainder. The greater a company's ability to use data in order to increase client understanding and intimacy, the better the return. Personalisation isn't only a marketing strategy for digitally native businesses that have a data-backed, direct-to-consumer approach.
Those that lead the charge in personalisation have superior customer experiences. Their emphasis on the relationship and long-term value results in improved upward migration, retention, and loyalty.
Personalisation may also be a revenue accelerator for businesses that don't normally have direct access to consumers, such as consumer packaged goods companies. Those with the quickest growth in revenues were approximately 30 percent more likely to prioritise customisation than those who grew at a slower rate. Even modest changes in enhancing customer intimacy can provide competitive advantage—and these advantages increase over time.
Outperformers organise their business around personalisation
Rather than focusing on immediate wins, they look for long-term drivers of growth and emphasise customer lifetime value when it comes to personalisation. Rather of seeing personalisation as a marketing or analytics problem, these businesses see it as an opportunity for the entire company. They seek out longer-term drivers of development instead of concentrating solely on short-term gains.
How can I achieve personalisation in my branded content with interactive video?
When used correctly, interactive video can make a big difference in the level of personalisation that is possible with your branded content. By allowing viewers to control what they see and when they see it, you can create a much more customised experience that feels less like an advert and more like a personalised message from your brand.
Interactive video can also be used to collect data about your viewers, which can then be used to segment them into different groups and create even more targeted content. By using video analytics, you can see how long each viewer watches your video, what parts they skip, and what type of interactions they make with the video. This information can be used to create even more personalised content in the future.
It's easy to see why personalisation is such a powerful force multiplier—and a corporate need—when you consider that over 70 percent of customers now regard it as a fundamental right. Organisations in which the capacity to build and activate at scale may be built and unleashed can put client lifetime value on another path, resulting in double-digit revenue growth.