How to Improve Your Digital Customer Experience Strategy With Personalized Marketing

July 18, 2020

Learn how bot marketing allows brands to improve customer experience through personalized marketing.

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Now more than ever, businesses that want to survive and thrive in the current increasingly competitive business landscape must invest in personalization. Regrettably, many companies struggle with personalization. Research shows that data-driven personalization is a hard task for 63% of marketers. It is consistently rated more difficult than content marketing, email marketing, SEO, and other marketing tasks. Yet, only 10% of consumers strongly agree that companies deliver a pleasant experience. And better experiences are founded on personalization.

Many brands have a long way to go to meet consumers’ expectations of customer experience and personalization. Fortunately, there is a way for brands to improve the digital customer experience by meeting customers’ personalization needs. Continue reading to learn how bot marketing allows brands to enhance customer experience through personalized marketing. The result is also more conversions and stronger marketing performance. But first, let’s cover the basics.

What is Digital Customer Experience?

Digital customer experience can be described as the sum of digital interactions a customer has with a business and the resulting impression on the customer. The interactions are both pre- and post-sale.

Today’s customers have high expectations for quality service, which makes it extremely important for businesses to deliver exceptional digital customer experiences.

According to HubSpot, a digital customer experience strategy should have six vital areas:

Reachability: which channels can customers reach you?
Service convenience: which type of channels is your company using to provide service?
Purchase convenience: how seamless is the purchase process?
Personalization: how well does your enterprise meet individual customer needs?
Simplicity and ease of use: how easy to use are your service and informational channels?
Channel flexibility: does your company use context about a customer –behavior, transactions, and conversations across all channels?

In addition to having a customer experience strategy, a business should invest in digital customer experience management to understand how consumers interact with its brand online.

What is the Value of Customer Experience for Your Brand?

Measuring customer experience is hard. However, customer experience determines whether your customers are happy and will stay with your business or are unhappy and shift to your competitors. Below are the benefits of customer experience.

Increase revenue: Customers are willing to spend 17% more in exchange for a good experience.
Attain competitiveness: two-thirds of businesses contend that customer experience offers them a competitive advantage.
Improve employee engagement: brands with exceptional customer experience have 5 times more engaged workers than laggards.
Improve customer satisfaction and retention.
Great customer experience helps reduce customer acquisition costs.
Create customer advocates: After a good experience with a brand, a consumer tells 11 people about it on average. Loyalty means your business gets free advertising.

What is Personalized Marketing?

Personalized marketing refers to the use of data to deliver messages targeted to an individual customer or prospect. Unlike in traditional marketing where the quantity of messages was prioritized, in personalized marketing, the quality and relevance of the message are paramount. How effectively you get in front of your customers is increasingly seen as more valuable than just how often you get in front of them. Personalized marketing aims to deliver highly relevant messages to the consumer at an optimal moment using their preferred platform.

Spotify is a prime example of a leading brand that has mastered the art of personalization. Their Wrapped campaign is an end-of-year event in which they reveal personalized listening data for each user from throughout the year. They connect with users on a very personal level by collecting user insights from their platform and creating hyper-personalized marketing. In the first week after Spotify Wrapped 2019 went live, more than 60 million users engaged with the in-app story experience that racked up nearly 3 billion streams from Wrapped playlists. The viral campaign turned millions of people into unpaid Spotify influencers by sharing their own favorites on social media platforms. It also drove signups for their Premium offer by highlighting the value of paid Spotify features to its free users.

Why Personalized Marketing

Below are statistics that prove the importance of personalization in digital marketing:

63% of consumers are annoyed by generic advertising messages. 63%

90% claim they find personalization appealing. 90%

86% of consumers confirm that personalization affects their purchase decision significantly. 86%

83% of consumers will share personal data to receive a more personalized experience. 83%

How Bot Marketing Improves Your Digital Customer Experience with Personalized Messaging

Bot marketing is an excellent way for brands to improve digital customer experience with personalized messaging. Bots enhance digital customer experience through personalization by:

Helping beat ad fatigue: High ad frequency is not desirable for today’s consumers. People do not want to see the same ad a hundred times – it annoys them. Bot marketing beats ad fatigue by targeting the right ads to the right audience and adding a personalized touch.
Enabling consumers to easily find products in large e-commerce catalogs: Guided shopping bots guide customers through the purchase funnel by offering relevant information and product recommendations. This type of digital personalized shopping assistant brings a more human in-store experience into the digital world.
Offering real-time communication: Bots offer real-time and customized communication to meet customer needs in the moment. You engage your customer in their highest moment of intent with a positive experience that makes buying from you intuitive and easy..
Creating a smooth purchasing process: Marketing bots customize the purchase process by identifying the customer’s preferences and making relevant recommendations.
Gathering vast amounts of customer data to allow personalization at scale in real-time chat and through remarketing that brings customers back to chatting with your business.
Nurturing customer relationships: Since messaging is natural and casual, it adds a personal touch to customer communications and nurtures existing customer relations while forging new ones.

How Chatbots Powered by Spectrm Deliver Personalized Digital Customer Experiences

Telekom

With 700 stores in Germany alone, Telekom was looking for ways to provide its customers with personalized recommendations at scale. Consumers want a convenient and effortless way to find the contract that fits their needs. But finding the right phone and data bundle is often overwhelming with so many options available. Telekom needed to bring the in-store buying experience online in order to achieve the scale they desired.

The solution was a Facebook Messenger bot powered by Spectrm to engage customers at scale and make recommendations of relevant products. The bot allowed Telekom’s customers to find contracts that meet their needs, resulting in a 9X contract conversion lift.

Purple

Purple, a D2C comfort technology brand, wanted to find more efficient ways to prospect new Mattress customers online. To solve this, Purple created a “Mattress Finder” chatbot with Spectrm that offered new potential consumers the opportunity to chat via Google Display ads. In one single ad prospects could discover the mattress best adapted to their sleep preferences, learn more about the brand and easily buy the recommended product online.

For a similar cost to regular display the first campaign resulted in 1.03 million one-to-one brand engagements, with 80% of revenue from ad touchpoint closed in 7 days and a 4x return on ad spend. Seeing conversion results, Purple has continued to spend on conversational display ads with Spectrm.

Bottom Line

It is indisputable that today’s brands need to do more in order to meet consumer expectations for a pleasant experience. Businesses must strive to offer exceptional digital customer experience to increase competitiveness, drive sales, improve retention rates, and boost revenue.

Personalized marketing through conversational marketing chatbots is the perfect way to achieve this. Consumers no longer want generic messages. They want personalized experiences tailored to their needs, delivered at the right time, and using the right medium. Bot marketing is the key to improving digital customer experience through personalized marketing. Improve your brand’s digital customer experience by building a chatbot for personalized marketing with Spectrm. BOOK A DEMO today.