As the new year approaches, brands are in a race to deploy various strategies to enhance personalized experiences in order to increase their market share.
Leading experts also acknowledge that personalized experience will become a trend in the future, as consumers constantly seek new and unique experiences.
Numbers speak for themselves
According to the report, “Consumer Attitudes Towards Personalized Experiences” by Salesforce conducted in May 2022, 73% of customers expect brands to anticipate their needs and expectations. 56% of customers expect personalized offers. Meanwhile, 88% of customers believe that the experience a brand provides is as important as its products and services.
Another study by Deloitte revealed that 60% of Gen Y are willing to share their information with a brand if it improves their experience, and 59% of consumers are willing to pay more for a better experience.
Personalization not only enhances customer loyalty but also creates new value for businesses.
40% of customers spend more when they have personalized shopping experiences, even if the products or services are more expensive than initially expected. This is because a one-size-fits-all approach fails to meet every consumer’s desires. As their expectations for personalized experiences continue to rise, particularly among Millennials and Gen Z, businesses that do not constantly innovate in their journey to provide personalized products and services will be left behind due to low conversion rates.
One notable example of successful customer experience personalization is the music streaming application Spotify. When it first emerged, this online music service had to compete with strong rivals like Apple Music, Google Music, and Tidal.
They improved product quality by utilizing data analysis, leveraging user profiles, and personalizing customer service to introduce new features for their premium version. Specifically, with current user data and analytics technology, Spotify is implementing a strategy consisting of four key actions:
- Reorganizing and optimizing user music libraries in playlists
- Personalizing playlists
- Creating campaigns to connect local artists with users.
Spotify’s strategy focuses on improving the user experience while introducing new features for premium customers who expect exclusive perks. This forward-thinking approach has made Spotify a dominant player in the market.
Recently, Spotify’s annual campaign, Wrapped, made a significant impact on users and artists. The opening event for this year’s year-end summary campaign stirred up the global online music industry and received enthusiastic responses from many young people.