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7 Benefits of CX Personalization to Build Better Relationships.

Smart business owners know that meeting and exceeding customer expectations is key to surviving in a digital-first world. It’s right…

7 Benefits of CX Personalization to Build Better Relationships

18th July 2022

Sales Team

By Tanhaz Kamaly – Partnership Executive, UK, Dialpad UK

Smart business owners know that meeting and exceeding customer expectations is key to surviving in a digital-first world. It’s right up there with increasing your business’s online presence as an SME priority. 

From personalization basics such as email greetings and customized website landing pages to data-backed product suggestions based on customer behavior patterns, CX personalization benefits businesses of all sizes.

Read on to explore seven benefits of personalization that you can implement today to build better relationships with your customers and ultimately drive more revenue. 

Let’s begin with a comprehensive definition of the CX experience. 


What Is a Personalized Customer Experience?

A personalized customer experience starts as a marketing strategy that requires an inherent understanding of your customer base. CX personalization tailors your communications and interactions with every customer to meet expectations, create personalized user journeys, and design new products or services to delight your customers. Using a powerful system such as the IBM AS 400 mainframe will provide you with simple flexible tools to aid this process.

Companies that use email finder tools to send generic customer emails will ultimately lose out in this personalized-centric consumer world. 


Why Is Customer Personalization Important?

A recent US marketers survey revealed that the main benefits of marketing personalization were increased conversion rates and e-commerce revenues (63% and 31%, respectively). With this in mind, CX personalization has never been more relevant to business success. 

CX personalization done right achieves a goal of loyal customers that will be more than happy to repeat their experience and frequently buy from your business. Just like a new affiliate program, a seamless and enjoyable customer journey encourages brand advocates, and it also delivers more consistent revenue streams. 

Just some benefits of CX personalization include:

  1. Higher conversion rates
  2. Boosting customer retention
  3. Better lead nurturing
  4. Increasing average order value
  5. Enhancing customer lifetime value
  6. Impacting brand reputability
  7. Delivering a competitive advantage


Let’s look at these benefits in a little more detail.


1. Higher conversion rates

When you can successfully deliver a targeted and personalized customer experience, perhaps with the help of enterprise grade software, your customers are more likely to spend more. This is because CX personalization works to provide confidence in your products and services and reassures your customers that they’re making the right decision by purchasing from your company. Personalizing every customer touchpoint makes the experience super relevant and enjoyable and one that they will want to repeat.  


2. Boosting customer retention

The rise of data-driven personalization helps with serving your customers, and understanding their needs and wants. Employ tactics such as customer surveys, website analytics, and social media interactions to comprehend how to incentivize your customers to stick with your brand. CX personalization data enables your business to predict future customer behavior and allows you to create new products and services that you know your customers will love. 

Employ strategies like discounts, rewards, and loyalty programs at the right time in the customer journey using CX personalization to build better customer relationships. Customer retention is the most effective way to generate business income, so this should be your focus rather than acquiring new customers. 


3. Better lead nurturing

When you attract new customers, the lead nurturing phase is essential in converting them into loyal customers. CX personalization is the most vital tool in your marketing kit to help with this. Strive to establish the best channels to reach your leads on, the communication styles they prefer, past purchase history, and more to nurture them down your funnel to sales success. 


4. Increasing average order value

Increasing average order value (AOV) is a fruitful e-commerce marketing tactic to remember. For example, startup Amazon businesses must focus on how to increase average order value to ensure profits are constantly on the rise. CX personalization encourages impulse buying in even the savviest consumers, so use this psychology to your advantage. 


5. Enhancing customer lifetime value (CLV)

Customer lifetime value is one of the primary elements in determining your company’s success, and this metric enables you to measure how much focus you should place on each customer. CX personalization strategies include tracking individual sales and working out ways to increase repeat purchases. Though it should be considered that the nature of tracking could change when Google introduces the third-party cookie phase-out in 2023.  


6. Brand reputability

If you make a mistake during customer experiences, your customers won’t return to your business. For example, if customers call your business phone numbers and experience a less than stellar response, they have many other market offerings to fulfill their needs and expectations. On the flip side, if you constantly deliver an approach based on CX personalization, your brand’s reputation will stay intact. 


7. Competitive advantage

If your business delivers an exceptional personalized experience like an intuitive call forwarding service, you’ll gain momentum over your competitors. Companies that provide excellent customer service set the tone for how CX personalization should work elsewhere in your industry. It’s no longer enough to offer great products and services; you must deliver the whole package wrapped up in a personal parcel.  


How to Build Better Customer Relationships with CX Personalization 


Omnichannel marketing

One of the primary approaches to CX personalization is to adopt an omnichannel customer experience strategy. A key part of personalization is delivering your brand’s message consistently across multiple platforms and channels and meeting your customers where they reside. Omnichannel marketing means providing a fantastic customer experience across:

  • Social media
  • Telephone
  • Email 
  • In-app
  • Live chat 
  • Physical stores
  • Website 



To help your business to deliver CX personalization, turn to automation tools. Automated systems enable you to offer that sought-after consistent and personal approach from the start to the end of the customer journey. Tools like website chatbots increase customer engagement and give them confidence in purchasing from your brand. 

This takes the pressure off your customer service teams by providing alternative methods of communication to answer vital customer questions. Implement bots and telephony tools like ACD (Automatic Call Distribution) to personalize customer experiences in real-time and harness valuable information to improve your offerings. 



Use customer segmentation to divide your customer base into demographics, behavior, purchase patterns, communication preferences, and more to make personalized experiences easier to deliver. A/B tests different personalized strategies to establish the success of each campaign. 


CX personalization techniques

A couple of ideas to get started with CX personalization include:

  • Predictive product recommendations based on customer behavior and demographic data
  • Delivering the most relevant optimized content at the peak time
  • Creating tailored website landing pages to appeal to each customer segment
  • Optimizing pricing to suit customer needs and preferences


Time to Get Personal 

Customer expectations are only going to increase, so if your business is to stand a chance in this competitive market, CX personalization isn’t a “nice-to-have” – it’s a “must-have” strategy. See these email personalization techniques to see how easy it is to implement them into your customer experience.

CX personalization is so much more than a marketing tactic. This customer-centric approach must start from the core of your business and filter out to every interaction across the board. It requires complete buy-in from every team member to succeed, such as adopting a corporate compliance culture throughout the company’s ethos.   

When your business embraces CX personalization, not only will your customers be delighted, but you’ll experience more referrals as a result. Which can only lead to more revenue and drive your SME forward to stand out from the crowd. If you want to maximize the amount of referrals that you generate you may wish to consider offering referral rewards to your customers.

Remember, your personalization efforts should always be focused on providing meaningful value to your customers. To do this, demonstrate that you understand them and can deliver the solution they’re seeking from you. 

Categories: Advice, Articles

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