A personal approach to customer experience with preference data
From the way we work to how we purchase goods and services, every facet of our day-to-day life has been influenced by digital acceleration over the past few years.
But as we find ourselves inundated with different options, unfettered access to goods and services, and streamlined ways of doing things, decision fatigue has become increasingly commonplace. More and more of us have the desire to ‘switch off’, to unsubscribe from the barrage of data and instead engage on our own terms.
As a result, it’s never been more challenging for organizations to compete for customer attention and engagement. And in a world where people can switch between brands on a dime (and even switch off), customer loyalty is consistently being put to the test.
How can brands combat digital fatigue and deliver more relevant digital experiences? By leveraging preference data.
What is preference data?
Preference data is data that a customer intentionally and proactively shares with a brand. This includes information such as style, budget, purchase intentions, contextual data, habits, and demographics.
In today’s hyper competitive world, utilizing preference data is one of the best ways for brands to differentiate themselves and build loyalty and trust with customers. When customers divulge this kind of rich information — from preferences to what they expect from a brand or business — it’s an invitation for organizations to deliver better experiences.
If done well, companies can generate 40% more revenue from personalization than average players.
Of course, the real challenge is capturing preference data in the context of other customer data to take action on it. As customers demand more personalized experiences from the brands and businesses they buy from, having the right tools in place is essential. So, what does this mean for you?
Personalizing experiences by capturing preference data
We are excited to announce the Customer Preference Collection XM Solution. This innovation enables brands to capture preference information that customers are willing and happy to share. This data flows into Experience ID, our intelligent database that pulls in ALL experience and operational data shared by customers — structured, unstructured, CDP data, preferences — and then organizes it into unique individual profiles that provide a 360-degree view of each customer’s journey.
Ultimately, these innovations empower companies to deliver personalized experiences that fit in the context of the customer journey and meet ever-changing customer preferences — all at scale for individual customers, segments or cohorts.
Now, personalization comes to life in a variety of ways. The three most important use cases are:
- Lead and pipeline generation. In addition to building out a database of prospects, it’s crucial to understand the interests of potential customers.
- Targeted email campaigns and offers. Emails are one of the most effective ways to reach out to prospects when they aren’t actively thinking about your brand. Stand out from all the other emails with relevant content to the customer.
- Targeted interactions in real time. You already have a captive audience when a customer is on your website or app, use this opportunity to guide their journey in real time.
Let’s talk about how you can achieve the above using the Customer Preference Collection XM Solution.
Develop deeper customer relationships at scale
In order to deliver personalized experiences, you need to understand customer preferences. The Customer Preference Collection XM Solution enables brands to gather preference information. You can use it to understand demographics, habits, hobbies, and budgets, as well as allow visitors to share their name and contact information for targeted offers or newsletters later. In this example, Sara casually browses the Experience Fashion website and is prompted to share her style preference.
This data flows into Experience ID, a connected and intelligent system for all experience data.
Shape the customer journey in real-time
After capturing Sara’s preference information, you can now understand her motivations and intent, along with previous interactions and how she felt about them. This empowers you to immediately shape the journey in real-time in a variety of ways:
- Route Sara to the appropriate website. Sara has told you she likes athleisure clothes, so you can route her to that webpage. This capability comes straight out of the box with the Customer Preference Collection XM Solution -- templated industry-standard questions (retail, financial services and travel/hospitality) with customizable outcomes and dashboards, all configured through a self-service wizard.
- Deliver highly targeted experiences for individuals, cohorts or segments. Let’s say you know that Sara is a high-value customer that has been browsing a specific pair of yoga pants on your website. You can surface a 20% discount code to help her with her purchasing decision. Leveraging Qualtrics’ XM Platform and xFlow, you can deliver targeted experiences for Sara, and for other high-value customers that have the same behavior and preference patterns.
Gone are the days of a one-size fits all digital experience
With the increase of options in the digital space, preference data enables brands to deeply understand customers based on what they are happy and willing to share.
Change in the digital space is happening rapidly, and the shift towards understanding customers on a personal level is inevitable. But rather than an arduous pursuit, look at it as an opportunity to serve customers better, build authentic relationships, and create more meaningful experiences.
We are excited to help brands meet these ever changing-customer expectations — and in a way that prioritizes listening to customers individually and delivering personalized customer experiences.
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