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Personalized customer experience: is the customer really interested?

Companies are always more attracted by the personalization of customer experience, so that even from a report of Everstring, come out that 70% of the brands considered it a “top priority”.

How incident is the ROI?

Due to a study “Personalization development” in 2019,it is highlighted that: 

  • The personalization of the customer experience leads to a growth: the 93%of the companies adopting a strategy of “advanced personalization onsite”, saw an increase of revenues.
  • Higher is the investment, higher is the return:Brands that reached a double ROI (Return Of Investment), affirmed that the personalization represented a 20% of their budget
  • Personalization leads to a long term customer value: Infacts, brands with an higher personalized ROI (x3 or more) imposed this strategy as their principal KPI. 

So personalized customer experience make customers take action, so that they ask for more. In a recent study, it has been found that the 31% of the consumers wish that their experience could be definitely more personalized.  


The answer is due to cocktail party effect

This effect has been found in 1950 by a british cognitive scientist Colin Cherry, that wanted to understand where people focus and why. After an experiment in a noisy room, he found something interesting: our brain divides the overlapping of conversations in two different auditory stream, and after decide if to discard non relevant information. 

How can our brain decide to which information to pay attention?

This effect suggest that people focus on information that they consider relevant. Due to a research published in the Brain research journal, a fundamental key is when people hear their own name.

But what is truly the personalization?

Personalization is an hot topic and does not involve only the insertion of the customer name in communication reserved to him or the visualization of personalized ads, it is more than this.

Seth Godin says that:

“[Personalization] is a chance to differentiate at a human scale, to use behavior as the most important clue about what people want and more important, what they need.”

In order to activate the strategy of personalized customer experience, it is suggested to start with an analysis of the customer journey of users, once identified channels and customer needs, you can serve the best message at the right moment and so obtain focused outcomes. 

How to apply the Cocktail party effect to your company?

  1. Specialize yourself in the customers’ world
      • Know the name: 56% of them appreciate if their own name is recognized.
      • Know the past: 65%of them prefer to buy from a seller that knows their order history.
      • Know what they want: 58% of them prefer to buy from who suggest option based on their past purchases.

    A practical example is the personalization of the newsletter, where in the letterhead, there is the name of the receiver and the proposed images referred to a behaviour manifested by the received user.

  2. Personalized visual, copy and messagesIt is proved that personalization of contents, other than optimize the conversion rate, is also pushing people to add more products in their cards and diminish the abandonment rate.
  3. Give importance to dataIt is useful to create a progressive accumulation of data regarding the behaviour and preferences of the users.
    Other than ask straight to consumers if your marketing strategy is in line with them, you should provide a path through automation marketing.

Why to rely on this strategy?

Personalization can be a top priority for brands, but not everyone has reached their expectation.
Due to Gartner, this problem is caused by the fact that there is a lot at stake.
In a recent survey, brands have a 38% of risk to loose their own consumers due to low personalization.
In order to do that, marketers need to work tight with IT, operations and digital teams; but at the end the potential revenue is huge.

Science supports it and customers are asking for it.

Instead of asking yourself what personalization actions to activate, the question to ask should be: how can we make it a priority?

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