Conversational marketing: the key to boosting Customer Lifetime Value

The customer journey is fraught with hurdles

From missed opportunities to disconnected experiences, every interaction point matters. Today, more than ever, customers are interacting across various channels and devices, leaving their data scattered and fragmented. This disconnect can result in lower retention rates and difficulties in acquiring new customers. The key solution to these challenges lies in hyper-personalisation. By tailoring your marketing efforts to each individual customer, you can significantly improve engagement and retention rates. Let's explore how conversational marketing and personalisation can transform your approach.

Relevant messages meet consumer expectations

The heart of hyper-personalisation is sending messages that truly resonate with your customers’ needs and preferences. Highly personalised messages not only grab their attention but also drive higher engagement rates as they are more likely to purchase. Today's consumers expect and demand 1-1 personalised communication.

Consider these statistics:

• 35% of consumers feel that companies fail to meet their expectations. Large players like Amazon have raised the bar for all retailers.

• A staggering 90% of consumers disappear after just one bad experience.

• 86% of consumers are willing to pay more for a better customer experience.

• 76% of consumers are more likely to make a purchase at a company that uses personalisation.

Communications on preferred channels

Recognise that every consumer has their preferred communication channel, whether it's WhatsApp, email, Instagram or others. Acknowledging and catering to these preferences can significantly impact your success. According to Harvard Business Review, messages sent via preferred channels have open rates of 90%, a substantial increase compared to the general 21.3%. Additionally, Click-Through Rates (CTR) range from 45% to 60%, compared to the average of 2.6%. To maximise the impact of hyper-personalisation, it should be present throughout the entire customer journey. Whether it's the first interaction or a follow-up, personalisation should be a continuous effort.

Unleash hyper-personalisation and empower your strategy with an Engagement Platform

Now that we've highlighted the importance of hyper-personalisation, let's delve into how to implement it effectively. The key lies in leveraging an engagement platform that focuses on delivering value to both your customers and employees, rather than merely the software itself. To get the most out of this platform, it needs to collect and connect all relevant data so you can share personalised messages based on behavioural data and customer needs. To do this, you need a single source of truth, such as a Customer Data Platform (CDP) that consolidates customer profiles. This enables you to create a 360-degree view of each customer. Adding an AI Decisioning Engine on top of it, which also integrates with your marketing software, enables you to automatically determine the right content, channel and optimal timing for sending messages based on personal preferences and behaviour.

Imagine this: If you regularly check your email in the morning and receive newsletters, getting a one-day offer in the afternoon might seem out of place. But what if you could adjust the timing of your emails to match individual preferences and behaviours? Now, consider this scenario: you're running a travel organisation. It's crucial to identify whether your customers are early birds or last-minute bookers. Sending early recommendations to last-minute bookers early in the year could lead to annoyance and potential customer loss. On the flip side, sending last-minute offers to customers who have already booked doesn't make sense either. The timing of your messages plays a crucial role in their relevance and effectiveness. So, why not make the most of it?

Do you still need that last bit of proof?

In conclusion, reaching your customers and increasing CLV requires a strategic shift towards hyper-personalisation. By sending relevant, 1-1 communications through preferred channels and maintaining consistency throughout the customer journey, you can build stronger relationships and drive higher engagement rates. Leveraging an Engagement Platform that focuses on value is the key to achieving these goals. Embrace the power of conversational marketing and personalisation, watch your customer relationships thrive and create happy and loyal fans.