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Personalization Impacts Customer Loyalty
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Personalization Impacts Customer Loyalty

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August 22, 2014
By Anuradha Shukla
TMCnet Contributor


Eighty-four percent of marketers find personalization impacts customer loyalty and retention, according to a new commissioned study conducted by Forrester (News - Alert) Consulting.


Another 86 percent use personalization and targeting based on broad segmentation and simple clustering. But personalization is not easy and 48 percent of marketers said they face challenges in personalizing each customer interaction.

According to the study, “The ability to deliver personalized customer experiences and contextual, unique offers is essential to retaining and converting customers to brand advocates. But the expectations of empowered, connected consumers make this easier said than done. They have instantaneous access to information across multiple devices and want to interact with brands on their terms across channels and whenever they want.

Even though 42 percent of respondents said they find it difficult to meet expectations of the always-connected customer, the same percentage also said they struggle with analyzing the constant flow of customer interaction data.

So what’s in store for the future? Findings from the study, “Refresh Your Approach to 1:1 Marketing,” indicate that 58 percent of marketers plan to increase spending in site optimization tools. A whole 52 percent of marketers said they intend to increase spending in real-time interaction management and another 51 percent plan to increase spending in predictive algorithms, while another 51 percent said they intend to increase spending in guided selling.

“The future of marketing is the customer journey. Today's hyper-connected consumer requires companies to create personalized experiences and deliver value at each touch point to increase brand loyalty and drive sales,” said Woodson Martin, chief marketing officer, ExactTarget Marketing Cloud. “Marketers need to be empowered to use data to drive these 1:1 journeys and experiences with their customers.”�




Edited by Stefania Viscusi

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