Customer needs are highly variable and complex on an individual level. Present-day customers are maturing at an aggregate level with greater expectations for high customer service standards. Customer service that exceeds customer expectations for increased loyalty and satisfaction is the single most important driver for any business.
Personalization in terms of customer service has different angles to it: customized customer service, personalized answers to customer queries, service request fulfillment based on customer context for focused service delivery. In spite all these variances, personalization in customer service has three basic common requirements for customer engagement, which are:
- Creating a loyal customer base
- Valid data
- Practicality through the analytical approach
Complying with the expectations related to personalized customer services means that the same quality of customer experience is available across channels. Further, businesses must incorporate inherent seamless transition among channels and availability of most relevant information in response to customer behavior for definitive success.
The Mechanics and Advantages of a Loyal Customer Base in a Niche Area
The idea of transitioning from economies of scale to economies of scope is significant for personalized customer service in any business. This shift in focus is drastic, steering away from a broad playing field to increasing conversion based on a limited product portfolio for a narrow customer base. Contemporary efforts are directed towards concentrating on greater customer retention for a niche segment by expanding product and service offering considerably.
The approach takes advantage of the varying levels of loyalty among customers and adding to the bargain cuts down on advertising costs. However, it demands high focus and a continuous mechanism for capturing customer data and responding to customer queries to gain important customer insights.
Importance of Data in Personalization of Customer Service
Companies used to rely on simple strategies in the past to help create customer experiences for their limited audience which were fulfilling and personalized. Simple practices such as using customer names, making eye contact, implementing loyalty programs to offer customer service translated to personalized services.
While these practices are still valid, reliance on data, using location-based service delivery, using multiple channels to offer customer service, funneled recommendations based on customer behavior and a focused approach catering to the individual needs of customers is the present day strategy for competitive enterprises. Successful companies rely on information in the form of primary client histories, service level agreements, and supplementary data to build conducive environments for thriving customer relationships.
Analytical Approach to Personalization
Personalization efforts are best supported by relying on public financial information, sales data, or press releases. Further, the analysis of a company’s customer base on the individual as well as aggregate level, which is supported by feedback is important for a fulfilling customer purchase experience. The analytical approach warrants greater customer loyalty through its effective customer engagement and management approaches.
Therefore, to achieve measurable outcomes in personalization of customer service, companies must focus on achieving exceptional personalization in customer service, by relying on data and technology to understand customers better. Eventually, a well-rounded approach backed by strategic engagement in customer journeys is the answer for long-term profitability and customer loyalty. To know more about personalizing your customer service engagement on the web, talk to an expert.
- Kelly Koelliker, ‘The 3 C’s of Personalized Customer Service’, January 23 2015, CMS Wire, accessed April 2017
- Amalia Agathou, ‘How To Personalize Customer Service: "It's Personal, It's Business" ‘ December 2010, article, The Next Web, accessed April 2017.
- Shep Hyken,"Personalize Customer Service To Create Amazing Customer Experiences", blog, Web, SHEPHYKEN, accessed April 2017.