In today's competitive market, delivering exceptional customer experiences is non-negotiable. And at the heart of that lies one powerful concept: personalization.
The numbers speak for themselves. A striking 71% of consumers expect companies to deliver personalized interactions, and a nearly identical 76% get frustrated when this doesn't happen.
The upside? 60% of consumers say they will become repeat customers after a personalized shopping experience.
With these statistics, perhaps we shouldn't spend more time debating ig personalization is important for customers. The real question for businesses is: How does personalization translate into success for owners and shareholders?
The answer is clear: significantly.
Here are a couple of powerful examples showing how major brands have leveraged personalization to drive massive results.
Hanna Andersson: Turning Personalization and Rewards into a Multi-Million Sales Machine
The premium childwear brand Hanna Andersson made a strategic investment in 2022 under its newly appointed CEO, focusing on a re-sale marketplace and the Hanna Rewards Loyalty program.
This loyalty program quickly exploded, gaining nearly 1 million members. Today, the Hanna Rewards program is an absolute powerhouse, driving about 70 percent of the company’s $135 million sales. Furthermore, the brand's commitment to its customers is reflected in its high feedback average rating of 4.5 out of five stars.
With Hanna Andersson's projected annual growth sitting at a robust 10-15%, it's easy to agree that investing in personalization and loyalty programs offers a massive, almost instant, return on investment.
Saks Global: A Personalization Strategy That Really Paid Off
Saks Global is leveraging cutting-edge technology to transform the shopping experience for its 30 million US-based customers. They utilize Salesforce B2C Commerce Einstein to deliver hyper-personalized customer journeys.
By using AI-powered personalization that learns from customer behaviors on the eCommerce site, a customer’s Saks.com homepage is now uniquely curated based on their activity. This includes:
The initial results of this strategic rollout, which began with just 5% of Saks customers, are phenomenal. According to Saks Global, this level of personalization resulted in a 7 per cent increase in revenue per visitor and an improvement in conversion by almost 10 per cent.
“It’s the first step for us as we think about the personalisation journey of the eCommerce experience,” she says. “It makes sense to start with the homepage: it’s the storefront to the overall experience." - Emily Essner, chief commercial officer for Saks Global
Personalization Also Lowers Costs
The benefits of personalization aren't just about boosting revenue; they're also about dramatically improving the bottom line.
Repeating customers cost over 5 times less than acquiring new customers. In a world where marketing expenses have skyrocketed by 40-50% in the past five years, a loyal customer base directly and significantly impacts profitability. Investing in personalization is investing in customer retention—your most cost-effective growth strategy.
How to Start Your Personalization Journey
The technology to achieve these results is more accessible than ever before.
At Digital Commerce Advisor, we help brands personalize customer experiences using proven, data-driven methods powered by Data + AI.
For example, implementing a personalized homepage, similar to Saks Global's strategy, is an innovation that can be enabled within a rapid 2-3 weeks.
Our expertise spans the whole customer journey, from the first click to fostering a long-lasting customer relationship.
Ready to see how you can unlock a 7% revenue uplift and gain a sustainable competitive edge?
You can book a live demo here to see our personalization solutions in action.