EXPERT INSIGHTS

Jun-11-2024

8 strategies to provide personalized customer service

Khoros Staff

Today’s customers have high expectations. They’re looking for quality service, fair pricing, and exceptional customer support that goes beyond basic assistance. According to Instapage, 77% of consumers say they are more likely to choose, recommend, and even pay more for a brand that provides a personalized customer service experience.

Given these dynamics, businesses must prioritize personalized customer service to remain competitive and foster customer loyalty. In this blog, we'll delve into what personalized customer service is, why personalized customer service is important, strategies on how to personalize the customer service experience for every customer, and personalized customer service examples.

What is personalized customer service?

Personalized customer service involves creating tailored experiences that cater to each customer's unique needs and preferences. Instead of treating customers like just another number, personalized service recognizes each individual as someone with distinct expectations and preferences. By collecting and analyzing customer purchase history, browsing behavior, previous communications, and other interactions, you can provide relevant recommendations, offer more detailed support, and most importantly, simplify their lives while making them feel valued.

Why is personalized customer service important?

With over 60% of customers stating that they’ve stopped doing business with a brand due to poor customer service, companies must do everything possible to earn and maintain customer loyalty. One of the most effective ways is to provide personalized customer service tailored to individual needs and preferences. When you provide personalized customer service, your brand can:

  • Provide a faster, more seamless customer experience: By understanding your customers' preferences and history, you can anticipate their needs, streamline processes, and resolve issues more efficiently, ultimately leading to higher satisfaction.

  • Build trust: When customers receive recommendations and support based on their preferences and past interactions, it builds trust, improves their overall experience, and sets your brand apart.

  • Boost customer loyalty: Emotional attachment drives 43% of business value. By creating meaningful and personalized interactions with your customers, you can foster stronger emotional connections, leading to increased loyalty and advocacy for your brand.

How to personalize the customer experience

To effectively implement these principles and truly offer personalized customer conversations, businesses must adopt strategic practices that cater to individual customer needs. Below are eight key strategies to personalize your approach to customer service, making every interaction more meaningful.

1. Learn and use customer names

Salespeople are taught to use prospects’ names in conversations for a reason: It catches attention and boosts likeability, making the speaker appear more caring and interested in the conversation.

Learning and using customer names has a similar effect when providing personalized customer service. Who wouldn’t rather be called by their name than addressed as Customer #717? It signals that you recognize and respect your customer as a person rather than a sales opportunity.

Ensure your customer service representatives have access to customer names through your CRM system or customer database. Then, encourage them to use names naturally, both in-person and online. They can use customers’ names in email communications, over the phone, when live chatting to troubleshoot issues, and more.

2. Utilize customer data

To personalize the customer experience effectively, leveraging customer data is essential. By analyzing data such as purchase history, browsing behavior, and previous interactions — businesses can gain deep insights into each customer's preferences, needs, and habits. This rich, detailed understanding allows you to tailor communications, recommend products or services that are truly relevant, and anticipate customer needs before they even arise, leading to more personalized and proactive customer service.

Consider implementing a CRM system that can help aggregate and analyze this data efficiently, ensuring that every customer interaction is informed and personalized, thereby enhancing the overall customer experience.

3. Provide an omnichannel experience

Customers today expect to access support across various touchpoints. An omnichannel approach provides a seamless and consistent experience, whether they’re interacting with your brand via social media, your website, a mobile app, or in-store.

To ensure a consistent customer experience, use customer service software that pulls data from all the channels you offer support through. By having this information in a unified dashboard, customer service agents can seamlessly gather previous interaction data from different channels so customers don’t have to repeat themselves. As a result, agents can provide personalized service from the start and you can make it easy for customers to swap between channels based on their preferences.

4. Offer customized solutions

With a wealth of information on your customers, use it to offer customized solutions that address their unique challenges. This personal touch shows that you value them beyond the transaction. For instance, adjust service approaches based on past feedback, provide tailored product recommendations, or offer exclusive discounts on items they frequently purchase. 

Utilizing AI tools can further refine these custom solutions by analyzing data to predict customer needs and preferences, making customers feel understood and encouraging repeat business. Additionally, personalized follow-up messages and proactive problem-solving can enhance the overall customer experience, fostering long-term loyalty.

5. Humanize interactions

Humanizing interactions should be a given, but you’d be surprised how many companies overlook this essential aspect of customer service. In an increasingly digital world, maintaining a personal touch can set your brand apart and build deeper connections with your customers.

Look beyond a customer’s purchase history to understand where they are coming from. And don’t force your customer service reps to stick to a script. This can make customers feel like no one’s actually listening. Instead, encourage customer reps to learn more about customers. For example, if they’ve bought a rain jacket in the wrong size and are in the process of returning it, instead of simply processing the return, your rep could ask about their travel plans and could even recommend the best size and type based on that information.

6. Use a friendly and approachable tone

75% of customers prefer an authentic human voice over perfectly crafted brand messages, so don’t be afraid to adopt a friendly, approachable tone. Speaking with warmth and authenticity can make your customers feel more comfortable and valued, which can build trust and help your brand feel more relatable.

By using conversational language and letting your personality shine in customer interactions, you can create a memorable customer experience that feels genuine and leaves customers feeling satisfied.

7. Provide a VIP experience for certain customers

To go above and beyond for your customers, consider providing a VIP experience for certain loyal or high-value customers to show your appreciation. This could include exclusive offers, early access to new products, or personalized services that cater to their specific interests and needs.

For instance, you could create a loyalty program that rewards frequent shoppers with VIP status, giving them special discounts, dedicated support lines, or invitations to exclusive events. By treating these customers like VIPs, you not only increase their satisfaction and retention but also turn them into passionate advocates for your brand.

8. Leverage technology

If you want to enhance efficiency while still providing a personalized customer experience, utilizing advanced technology like chatbots and contact center automation can significantly streamline service operations and offer tailored support to your customers. Tools like Khoros Service leverage AI and machine learning to understand customer queries and provide accurate, context-aware responses. This means customers can get quick answers to common questions any time of day, freeing up your human agents to handle more complex issues and provide deeper, more personalized assistance.

In fact, organizations with virtual customer assistants report up to 70% fewer call, chat, and email inquiries. That means more resources are available to focus on enriching the customer experience in other areas, reducing wait times, and improving overall satisfaction.

3 personalized customer service examples

Now that we’ve explored various strategies to deliver personalized customer service, let’s look at some leading companies that put these ideas into practice. Here are three real-world examples that demonstrate personalized service.

1. Samsung

Samsung
Samsung


A great example of providing a personalized customer experience is when Samsung Canada rewarded a loyal customer with a customized phone featuring their dragon design. The customer had initially requested a free Galaxy S3 with a drawing of a cute dragon. While Samsung initially denied the request and responded with its own drawing of a kangaroo, this playful exchange went viral. In the end, Samsung went above and beyond by sending the customer a personalized phone with their dragon drawing.

While you don’t need to send personalized free products, a thoughtful personalized response and offering a special VIP experience for loyal customers can significantly enhance your brand's reputation.

2. Midco

Midco

Midco, a cable company, exemplifies exceptional customer support by going the extra mile. In the provided example, when addressing a customer's concerns, Midco not only uses the customer's name but also tailors solutions to their specific needs while maintaining a friendly and approachable tone. This personalized approach makes customers feel acknowledged, valued, and well-supported, enhancing their overall experience with the company. It's a reminder that personalizing the customer experience doesn't always require grand gestures; even simple acts of attentiveness can make a significant impact.

3. HP

HP

HP, a technology company, excels in personalized customer service, offering various avenues for tailored interactions. Their service suite includes online support forums, a comprehensive knowledge base for self-help solutions, and a virtual assistant.

In the provided example, the automated chatbot stands out by delivering real-time, personalized support. It guides customers through troubleshooting steps and maintenance options while providing an opportunity for users to articulate their specific issues. This approach acknowledges that each customer inquiry is unique and requires customized assistance.

Moreover, HP allows customers to engage through multiple channels such as web forms, emails, and phone support. This flexibility enables customers to reach out in a manner that suits their preferences, enhancing the overall personalization of their support experience.

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