If you’ve ever shopped on Amazon, you’ve experienced firsthand the company’s recommendation algorithm that upsells and cross-sells products based on your tastes and personality. Perhaps you’ve even purchased one of the recommended products. If so, you aren’t alone. After its deployment, Amazon experienced a 29 percent increase in sales over the same quarter in the previous year.
Starbucks, on the other hand, launched a mobile app that combines its loyalty program with personalization, giving customers the ability to fully customize, preorder and pick up drinks from any location. Currently, the app drives approximately 22 percent of all U.S. sales. These are just two examples of the impact personalization can have on companies, yet it’s a strategy that is gaining ardent support across industries. In a study by Researchscape International, the majority of respondents (87 percent) reported a measurable lift in their personalization efforts and more than three quarters (77 percent) believed personalization should be a bigger priority for their organization.
It’s not just companies that can benefit from personalization. According to a Gartner study, the majority of respondents felt that personalized messages geared toward helping consumers gives them a better deal, and nearly half feel it saves them time.