Your customers love contextual communication. Contextual communications are smart, timely, and personalized – both in content and delivery channel – and they make customers feel valued.
The results are powerful when companies make their customers feel valued. This emotional quality has a significant impact on customers, including brand choice and loyalty, willingness to pay more, and tendency to recommend a brand.
We inherently know sending customers the right message across the right channel at the right time is the right thing to do, but it’s been hard to quantify the true value of contextual communications until now. At our recent webinar The Value of Contextual Communication, guest speaker Anjali Lai, Analyst at Forrester Research, Inc. shared her exclusive collection of research for the first time with Broadridge webinar guests.
Emotion is the strongest driver of customer loyalty, according to the Forrester Customer Experience Index. According to Forrester’s research, loyalty can be broken down into three categories:
- Retention loyalty, which means that your customers are more likely to stay with you;
- Enrichment loyalty, which means that your customers are more willing to buy incremental products and services from you; and
- Advocacy loyalty, which means that your customers are more willing to recommend you.
These types of loyalty drive revenue in various ways, but this also raises questions: What do we mean by emotion? How do you strategically manage emotion in the customer experience to yield strong business results?
“Emotion is critical to consumer behavior and decision making,” shared Anjali. “Emotions are a function of what customers encounter, how customers encounter it, and with whom customers engage.” In other words, emotions are influenced by interactions, context, and brand personality. And what further impacts interactions, context, and brand personality? Contextual communications.
Today’s standards for contextual communication are being defined by retailers. Consumers are seeking personalized shopping experiences. For example, approximately 27% of U.S. adults are willing to have their online shopping history tracked in return for a personalized experience. Additionally, 23% of U.S. adults say they prefer to shop online with retailers that make their experiences relevant. Both of these percentages are poised to grow over the next few years with younger generations prioritizing personalized experiences.
“Retailers are resonating with customers because they cater to what customers want and what they’re asking for through contextual communication,” shared Anjali. “The reality is that we are now living in a world where brands are delivering targeted communication that customers might not even yet realize they want.”
Hear Anjali explain how retail is setting the standard for contextual communications and personalized experiences across all industries in this 4-minute video.
Based on their retail experiences, consumers are now desiring and expecting customized communications across all industries: finance, insurance, wireless, utilities, and more. “Data shows that customers are using personalization tools and features when viewing or paying their bills, when filing claims, and when interacting with providers across websites and apps,” stated Anjali.
Even for service providers that communicate with their customers monthly via a bill or statement, customers still want these brand engagements to be deeply relevant. According to Forrester’s research, consumers say they are ready for their billing experiences to be more customized to address immediate questions, appeal to their mood, provide information that’s relevant to their lifestyle, and reach them on their preferred devices.
Are you delivering contextual communications to develop stronger loyalty – retention, enrichment, and advocacy – with your customers?