Blog Post
When Personalization Hurts Your Business
by Ed Murphy
“When done right, it's what sets you apart from the competition and keeps your customers coming back for more. ”

Today’s customers expect personalized experiences. Personalization often makes customers feel more valued, which inspires greater brand loyalty. A 2018 survey revealed that 91% of consumers are more likely to shop with brands that provide personalized offers and recommendations. That appeal is so attractive that almost a third of customers, 31%, wish their experience was more personalized than it is currently.

When executed well, such experiences enable businesses not only to differentiate themselves but also to gain a competitive advantage. Highly personalized customer experiences are difficult for competitors to imitate. Providing a personalized customer experience at scale can be operationally challenging.

But beware, an organization can take personalization too far?

We recently worked with a subscription-based business that promoted a highly personalized monthly product offering model. The marketing, enrollment process, and communications did an amazing job setting customers’ expectations. When customers signed up for membership, they completed a product preference survey, and each month were offered an opportunity to choose from a selection of curated products.

Our research confirmed that customers wanted the promised highly personal experience, in fact, it was one of several key experience drivers. However, through root cause and experience design workshops, we learned that as the business grew, they were operationally unable to meet the high expectation they created in their customers’ minds and as a result, that was driving down NPS.

While every organization will have unique issues to deliver more personalized experiences, some typical challenges to overcome are:

  1. Incorrect or not up-to-date data
  2. Non-unified customer profiles
  3. Poor or no customer segmentation
  4. Lack of collaboration across departments
  5. Technology challenges (from data management to integrating different channels and systems)
  6. Implementation and delivery cost
  7. Scalability

All of this means that companies need to invest time and resources into determining the right level of personalization and to get it right. Personalizing the experience is expected by customers. Ensure you work collaboratively across the organization to design a level of personalization that is right for your business. When done right, it’s what sets you apart from the competition and keeps your customers coming back for more.

Here at ImprintCX, we understand the challenges organizations face to deliver personalized experiences and can support you across your customer journey. Let’s get started.