According to SmarterHQ, 63% of consumers stop purchasing products and services from companies who poorly execute personalization. Personalization is good for business. In fact, Adweek reports that personalization can reduce acquisition costs by as much as 50%, increase revenues up to 15% and increase marketing spend efficiency as much as 30%. No wonder that, according to Forrester, 89% of digital businesses—including Coca-Cola, Netflix, Sephora and Wells Fargo—are investing in personalization. So, what’s the catch? Effective personalization requires organizations to be truly customer-centric and have the ability to seamlessly share customer data across their tech stack.
According to MarketingProfs, 52% of companies cite data silos as the biggest challenge to being customer-centric. Silos segment channels, departments, functions and customer information. According to a recent Forbes article, “Internal organizational silos can lead to inconsistent and undefined processes, disparate or missing data sources and systems, and misalignment across the supply chain. These challenges can drive up costs and negatively impact accuracy and quality, ultimately impacting the health of the company’s bottom line.” Breaking down silos can help brands better understand their customers’ journey and troubleshoot any gaps or areas that need improvement.
Silos often result in customers having to re-enter their basic information, which is extremely frustrating, undermines trust and gives them good reason to shop elsewhere. Given that, everything has gone digital, being able to deliver a seamless, consistent customer experience is more important than ever. The pressure is on for businesses to tear down silos in order to better engage and delight customers, with the goal of building lasting relationships that ensure retention and loyalty.
Loyalty has evolved way beyond points for purchases, it’s now a business-critical strategy. Why? KMPG International reports that mature brands derive more than 85% of their growth from their most loyal customers, and 86% of loyal consumers surveyed say they’d recommend a brand to family and friends.
Here are just a few of the ways breaking down data silos leads to increased loyalty and, ultimately, business growth:
- When everyone in the business has a shared vision of the customer, experiences across the organization can be more relevant and personal—creating lasting, emotional bonds.
- You can identify your most profitable customers and create unique, exclusive experiences that make them feel special, incent them to spend more and inspire them to share their great experience with others.
- Product development and innovations can be focused around customer feedback, and when these customers see their feedback in action, they will be more likely to upgrade and refer others.
- Every customer-facing contact can be empowered with accurate, relevant customer details in real time, so they can better serve customers and deliver a unified and consistent experience.
According to Deloitte, client-centric companies are 60% more profitable, and being able to dynamically leverage your customers’ data across every touchpoint is a great start. Annex Cloud’s Loyalty Experience Platform is purpose-built to feed first-party data across your tech stack, so you can start building lasting customer bonds, starting today. Contact us to learn more.