What is Personalized Customer Service?

Brands that want to offer exceptional customer service can’t settle for standardized support anymore. Today’s shoppers expect fully personalized interactions.

Over 62% of people prefer customized service. However, only 31% say most companies treat them like individuals with their own needs.  

Customized support will bring you closer to your customers while letting you enjoy organization-wide benefits.

This blog post will define personalized customer service and identify the benefits it can bring to brands.

What is customer service personalization?

Personalized customer service means giving shoppers a tailored support experience based on their past interactions with your brand. Support teams track customer information, enabling unique conversations relevant to each individual customer.

Standardized interactions over chat typically use the following format:

Elon: I have a question about my order.

Virtual Assistant: Enter your email address and order number.

Elon: [email protected].com. My order is #43514.

Virtual Assistant: What kind of item did you order?

Elon: Sneakers.

Virtual Assistant: What is your question?

Elon: When will my sneakers arrive?

Virtual Assistant: Please wait for an agent.

The customer eventually gets help, but it’s time-consuming and unengaging. The customer feels like just another ticket.

A personalized example looks like the following:

The issue gets resolved faster, and the shopper feels taken care of. The entire customer experience is enhanced.

Brands can give efficient, empathetic, and engaging interactions by storing customer information across all support channels, including phone calls, live chat, social media, etc.

Ever wonder how Amazon comes up with its You might also like recommendations? The ecommerce giant creates this customer experience by tracking users’ browsing history. 

And tracking data isn’t a bad thing. Roughly 67% of customers are willing to share personal info with brands as long as they receive some kind of value, such as improved service at every stage of the customer journey. 

4 Ways to Personalize Your Customer Service

1. Address customers by their own name

One of the simplest ways to personalize support might also be the most important. 

Starting customer interactions with a customer’s name can make shoppers feel significantly more appreciated. Yet agents do this only 21% of the time.

Greeting customers by name makes them feel respected and leaves a lasting positive impression. On the other hand, using a generic “Hello Sir/Miss” could be perceived as insulting.

A customer’s name should be recorded so different representatives can access it across communication channels. According to HubSpot, 33% of customers say repeating details like their names frustrates them most about customer care. 

2. Collect customer feedback

Personalizing customer experience isn’t just about personal details like name and email address. Brands can also transform their help desk by asking shoppers for feedback.

Over 75% of customers have a more favorable view of brands that proactively ask for and accept feedback. However, 53% of shoppers believe companies don’t take any action based on their opinions. 

Personalization is precisely how you show customers you’re acting on their feedback.

For example, you can give customers a post-chat survey that resembles this exchange:

Virtual Assistant: How would you rate your experience today?

Susan: 1/10.

Virtual Assistant: Would you like to leave a comment?

Susan: I wanted to speak to a human agent.

With Susan’s feedback, this company can remember that Susan prefers interacting with human customer service representatives. The next time Susan asks anything over live chat, she won’t interact with a chatbot—she’ll be immediately transferred to an agent, giving her a tailor-made omnichannel experience.

Collecting feedback lets brands develop real-time solutions for their customers’ problems.

3. Reward customer loyalty

Personalized support allows brands to reward their most dedicated shoppers. 

Nearly half of shoppers expect special treatment for their brand loyalty. 

Delight them with a personal touch. Observe customers’ birthdays with an email message or a free gift. Offer exclusive discounts, differentiated pricing, or early access to products. 

Ecommerce brands can customize their websites to fit loyal customers’ tastes. For example, you don’t need to show shoppers a standardized product catalog. Instead, you’re able to present return customers relevant products based on their earlier purchases.

Similarly, brands can insert personalized product recommendations into customer chats. A chatbot, for instance, can automatically suggest products and offer discounts that match loyal customers’ buying history.

Virtual Assistant: Hi Jeff, welcome back! How do you like your jeans? We’ve got a new collection of t-shirts we’re sure you’d love. Check them out here. As a returning customer, we’ll offer you a 20% discount.

4. Simplify your customized offer with automation

Today’s top artificial intelligence (AI) platforms can handle most personalization tasks. 

Having your agents manually input and collect customer data can be unnecessarily time-consuming. The world’s leading customer care tools can:

  • Store info like customer name, email address, phone number, etc.
  • Conduct customer surveys and gather feedback
  • Recommend products to customers based on purchase history
  • Share data across teams and agents to pinpoint customers’ needs 

Nearly 70% of high-performing service agents actively look for AI to handle repetitive tasks like managing personalization data. However, more than half of agents without AI software spend most of their time on this routine, unvaried work. Only 34% of agents who use AI say the same.

Automation helps agents focus on more pressing customer issues, but it benefits customers too. According to Oracle, 42% of customer support managers say automation will improve customer experience more than any other technology.

3 Benefits of Personalized Customer Service

A personalized service experience brings several benefits to brands and customers alike.

1. Improved Trust

Personalized customer care is consistently linked to higher customer engagement and trust.

Companies that deliver a “very good” customer experience are likely to earn the trust of almost 90% of customers.

Similarly, 83% of customers feel more loyal to brands that respond to and act on their feedback.

Responsibly using personal data solidifies customer relationships too. An overwhelming 92% of customers appreciate it when brands let them control what information gets collected. A further 88% trust companies that explicitly state they won’t share any data without customer permission.  

Remember, one-third of customers who abandon a brand do so because of a lack of personalization. Tailored service is an effective way to turn potential customers into repeat customers.

2. Increased Customer Satisfaction

Customizing service to suit your shoppers’ unique needs is the most effective way to delight customers.

What frustrates customers most when it comes to service?

  • 72% of customers equate poor customer support to explaining a problem to multiple people
  • 79% who complained about service online were ignored
  • 12% say their most common cause of frustration is “lack of speed”

Customer service personalization addresses all of these frustrations. 

Saving personal data ensures the whole customer service team is aware of customers’ preferences. 

Moreover, companies that want to personalize collect and respond to feedback (good and bad), so customers get tailored service. On top of that, custom responses let brands resolve cases faster. 

3. Higher revenue

Delivering a personalized experience to customers positively impacts a brand’s bottom line. 

Approximately 70% of customers are willing to pay more for convenient, unique experiences. 

When a company implements customized customer experiences on its website, its online conversion rate tends to increase by around 8%.

These conversions translate to a 10-15% increase in revenue and a 15-20% decrease in costs for brands that build a personalized customer journey.

Customer retention also rises, as 93% of customers are more likely to return after experiencing customized support.

Remember Amazon? Product recommendations, either on their site or sent via email, bring in 35% of the company’s revenues.

Personalization’s Perks

The statistics don’t lie—personalizing your customer service is vital to meeting customer expectations.

Managing customer data brings you empathetic conversations, customized recommendations, and unmatched customer experience.  

Brick-and-mortar and ecommerce brands have much to gain from personalizing every aspect of the customer service experience.