There are economic ups and downs, and customers have high expectations. It’s not enough to just get new customers anymore. The key to long-term growth is to build a loyal customer base.
CX leaders are prioritizing personalization
Many other organizations are also facing this challenge. Statistics show that most businesses are working hard to improve customer experience. To stand out from competitors, increase customer engagement, and attract more customers, it’s crucial to offer a distinctive and exceptional experience.
This is not done through normal marketing and boring loyalty programs, but through building genuine relationships from the start of the customer journey. At the same time, for this to be effective and something your competitors can’t replicate, it needs to be based on your unique audience’s context.
Loyalty starts way before customers pay. And that early you can understand their unique context to better engage with them.
This shift in mindset is particularly crucial for mid-sized and mature organizations, where competition is fierce and customer experience (CX) is a key differentiator.
Today you’ll learn why prioritizing customer loyalty is essential for your success, and how to leverage the power of personalization and video marketing to achieve it.
Why Loyalty Matters More Than Ever
The enterprise marketing world has traditionally emphasized customer acquisition. However, research paints a clear picture: retaining existing customers is significantly more cost-effective and impactful. Therefore, customer engagement pays back.
40% of consumers link “recognition” with the brands they are committed to
Here’s a stat to consider: acquiring a new customer can cost five times more than retaining an existing one. Loyal customers are not just repeat buyers; they are your brand advocates.
According to this survey, they readily:
- Bypass competitors: A loyal customer chooses your brand even when faced with readily available alternatives on platforms like Amazon (37.9% of loyal customers do this).
- Practice patience: They’re willing to wait for your products to restock, demonstrating unwavering trust (36.1%).
- Embrace loyalty programs: They actively participate in your programs, seeking deeper connections (43.5%).
- Subscribe and engage: Loyal customers actively seek out your updates and offers, opting-in to emails and texts (20.8%).
- Become recurring subscribers: They value convenience and consistency, subscribing to your services for a seamless experience (19%).
- Engage on social media: They actively participate in your online communities, fostering a sense of belonging (16.5%).
- Pay a premium: Loyalty translates to a willingness to pay more for your products, even when faced with cheaper options (26%).
- Become brand ambassadors: They readily recommend your brand to others, driving organic growth through word-of-mouth marketing (37.9%).
- Leave positive reviews: Loyal customers are vocal advocates, leaving glowing reviews that build social proof and attract new customers (29.1%).
- Make repeat purchases: They consistently choose your brand over time, solidifying their loyalty with each transaction (35.6%).
- Embrace new offerings: They’re excited to be early adopters of your latest products, showcasing their adventurous spirit (21.8%).
These statistics highlight the immense value loyal customers bring to your business. As you can see, customer loyalty is the foundation of sustainable growth, boosting revenue, reducing churn, and acting as a powerful marketing force.
The Personalization Imperative: Creating Experiences that Resonate
The majority of people dislike one-to-many marketing
To cultivate this loyalty, especially in the competitive mid-market space, personalization is key. Generic marketing tactics simply won’t cut it anymore because your customers live in an information-saturated world.
Here’s how personalization empowers you to create impactful experiences that win over customers:
- Transforming First-Time Buyers into Repeat Customers: While discounts can be a good initial motivator (28.1% of customers return for a second purchase due to sales), true engagement lies in understanding their needs and recommending relevant products.
- The Power of Relevance: A whopping 57.5% of customers prefer to receive information about sales and discounts directly from the brand itself, but only if it’s relevant to their interests. This highlights the importance of tailoring your communication to each customer’s unique preferences.
A Compelling Example of Personalization in Action
Consider a utility company that uses personalized video marketing to create a “year-in-review” for each customer. The video above utilizes personalization to demonstrate the customer’s unique usage patterns and to emphasize the service’s value proposition.
To enhance viewer engagement, this utility company can showcase personalized videos on a uniquely tailored landing page, as exemplified below. This type of personalized video is made with Pirsonal’s leading personalized video software.
Personalized landing page and video made with Pirsonal’s video software
However, effective personalization means providing customers with support throughout their journey, often through a clickable call-to-action (CTA).
To enhance the experience and broaden marketing impact, the utility company should consider adding a clear, personalized CTA to their videos to increase video conversions .
Here is an example:
Pirsonal’s interactive video player with personalized call-to-action.
This personalized touch fosters a sense of connection, appreciation, and ultimately, loyalty, encouraging positive word-of-mouth about the brand.
Should they just stop there?
In most cases, it’s crucial to provide follow-ups, just as in sales. Keeping this in mind, this utility company has the opportunity to enhance their customer experience by including the data-driven video on pages that are frequently visited by their customers. This will ensure that the message is effectively communicated.
One way to achieve this is by embedding an interactive video player or leveraging tools like Pirsonal Widget, which allows you to easily add the interactive video player to your own website.
Here is an example:
Screenshot of Pirsonal’s widget, which allows you to easily add personalized interactive videos to any website.
Both marketing and CX teams need to work together to make sure the experience offered to customers also aligns with the growth and retention goals the business has.
Similar to the example I just shared, “Tom” receives precise information that enables him to grasp the energy he has used and the money he has saved by making clean energy decisions, and is also encouraged to share his accomplishments and story with others.
That’s smart and impactful personalization!
The Power of Video Marketing for Customer Loyalty
People love video. In fact, when asked how they’d like to learn about a product or service, 44% say they’d most like to watch a short video.
And, as you saw in the utility example we covered earlier, when you add personalization to video, brands can see an average of 116% increase in conversions.
Personalized videos are particularly effective as they can dynamically tailor the message to each customer’s needs and interests based on data from a spreadsheet, CRM, marketing automation tool, and more.
Building Loyalty: A Journey, Not a Destination
Personalization extends beyond video marketing. It’s a strategic approach that permeates every touchpoint of the customer journey, from initial interactions to post-purchase experiences.
Here are some additional ways to leverage personalization for loyalty building:
Personalized Email Marketing
Example of personalized email with data-driven video
Segment your email lists based on customer demographics, interests, and purchase history. Craft targeted email campaigns with personalized greetings, product recommendations, and relevant content.
Depending on the tool you use, take it another step and personalize paragraphs and email content based on buyer persona. In this video, I share a few segmentation tips to help you do this:
Personalized, Data-driven videos:
These videos are an effective way to engage your customers right away and help them grasp important information within their own context. Using personalized videos is a compelling strategy to nurture customer loyalty.
Take a look at the personalized video demo below to see how it explains the forbearance process to a mortgage customer named “Henry”:
Dynamic Website Content:
Cater to individual customer needs by dynamically tailoring website content based on browsing behavior and purchase history. This could involve showcasing frequently viewed products, offering personalized product bundles, or highlighting relevant blog posts.
Want to take this to the next level?
Retarget leads and customers with personalized videos right from your website. This is possible with Pirsonal’s interactive video player.
Personalized Chatbots:
Utilize chatbots for real-time customer support, but ensure they offer a personalized experience. Integrate customer data so the chatbot can address customers by name, reference past purchases, and offer tailored solutions.
Personalized Loyalty Programs:
Go beyond generic reward points. Design loyalty programs that offer personalized rewards based on customer preferences. This could involve early access to new products, exclusive discounts on relevant items, or personalized birthday offers.
Remember: Personalization is a continuous process. As you gather more customer data, you can refine your personalization strategy to deliver even more meaningful experiences.
Building Loyalty Through Every Stage of the Customer Journey with Personalization
Context is crucial regardless of the customer’s stage.
Personalization offers the necessary context to enhance their experience. When this aligns precisely with their needs, they are more likely to take the desired actions.
This potential is immense.
So, how do we achieve it? In my experience, marketing is like a conversation. And the best conversations are based on mutual context.
How?
Let’s embrace the opportunity to capture, manage, and utilize the data we have at our disposal. Each piece of information adds more context. If this is your first attempt, don’t worry, take it step by step.
Start by asking yourself:
“How can we utilize the available data to better assist this client?”
Then, let your team’s creativity flourish. While customers already know their own name, they might struggle to comprehend the forbearance process and payment options, for example.
Let’s be creative alongside our team to bridge this gap.
Here are some starting ideas. For more advanced scenarios, make sure to watch the tutorial above.
- Pre-Purchase: Personalization in the pre-purchase phase involves understanding customer needs and pain points. Provide targeted content that addresses these challenges, such as blog posts, ebooks, or webinars. Utilize retargeting ads to showcase products relevant to their recent browsing behavior.
- Purchase: Personalization during purchase can streamline the process and improve customer satisfaction. Offer a smooth checkout experience with guest checkout options and saved payment information. Upsell and cross-sell relevant products based on the customer’s current purchase.
- Post-Purchase: The post-purchase phase is crucial for building long-term loyalty. Send personalized post-purchase emails and videos with helpful information on using the product, offer complementary product recommendations, and actively solicit customer feedback to understand their experience.
Conclusion: Investing in Loyalty is an Investment in Growth
By placing customer loyalty at the forefront and harnessing the potential of personalization and video marketing, businesses can excel in a competitive market.
In my experience, a collaborative effort between CX and marketing teams is crucial, and even more effective when everyone is on board.
Remember, loyal customers are not just satisfied customers—they are your biggest advocates, driving organic growth through positive word-of-mouth and repeat business.
Ready to take your customer loyalty strategy to the next level?
At Pirsonal, we specialize in assisting businesses like yours, as well as agencies that support them, in utilizing personalization and video marketing to generate outstanding customer experiences, which in turn foster loyalty and drive sustainable growth. Get in touch with us today to discover how we can assist you in reaching your customer engagement objectives.
