Personalization has become a buzzword in the world of business, and for good reason. In today's market, customers seek out personalized experiences and expect companies to tailor their interactions to their specific needs and preferences.
In fact, a study by McKinsey found that 71% of consumers expect companies to deliver personalized interactions, and 76% percent get frustrated when this doesn’t happen.
The rise of ecommerce has only accelerated this trend, as customers increasingly seek out convenient, personalized experiences online. One company that has excelled in providing personalized service to its customers is Chewy, an online retailer of pet supplies.
The importance of exceptional customer experience in today's market
In today's market, customer experience is everything. With so many options available to consumers, businesses need to find ways to stand out and differentiate themselves from their competitors. Providing exceptional customer service is one way to do this.
Customers are more likely to return to a business that provides a positive experience, and are more likely to recommend that business to others. In order to provide exceptional customer service, businesses need to understand their customers' needs and preferences.
This is where personalization comes in. By tailoring interactions to each individual customer, businesses can create a more engaging and memorable experience. This can lead to increased customer loyalty and higher customer lifetime value.
Meet Chewy and their unique approach to customer service
Founded in 2011 with a mission to provide pet owners with the best possible shopping experience, Ryan Cohen's Chewy is one of the most successful ecommerce companies to date, having been acquired by PetSmart for $3 billion in 2017.
While Chewy's success can be attributed to a variety of factors, one of the key tactics that helped them stand out was their personal touch. Cohen and his team understood the importance of building a personal connection with customers and went above and beyond to make their experience unforgettable.
From the beginning, Chewy placed a strong emphasis on customer service, recognizing that exceptional service is key to building customer loyalty. Chewy's approach to customer service is centered around making the customer feel valued and appreciated.
One of the ways Chewy did this was by sending handwritten notes and flowers to customers. This may seem like a small gesture, but it had a big impact.
Customers were delighted to receive something so unexpected and thoughtful from a company they had only interacted with online. It created a personal connection between the customer and the brand, and made them feel valued and appreciated.
But in the era of AI and ChatGPT, is a personal touch still important?
The answer is yes. While AI has certainly made it easier to scale personalization, it's still important to make customers feel like they're more than just a number.
Personalization should go beyond just inserting a customer's name into an email or recommending products based on their browsing history. It should be about creating an emotional connection with the customer and making them feel seen and heard.
This is where personalized videos come in. With tools like Maverick, it's now easy and quick to create personalized videos that can be sent to customers at scale.
Personalized videos take personalization to the next level by allowing you to communicate with customers in a way that's both personal and engaging. By using data such as a customer's purchase history and browsing behavior, you can create videos that are tailored to their specific interests and needs.
What are personalized videos for customers and how do they work?
Video customer service is a powerful tool for creating a personalized experience. Unlike traditional customer service channels like phone or email, video allows for a more engaging and interactive experience.
Personalized videos take this a step further, by customizing the video for each individual customer. This creates a unique and memorable experience that can help businesses stand out from their competitors.
By using video, businesses can provide a more visual and interactive experience for their customers, which can help to improve customer satisfaction and loyalty.
Personalized videos are created using customer data, such as their purchase history, browsing behavior, and preferences. This data is used to create a custom video that is tailored to each individual customer. These videos can then be delivered through a variety of channels, including email, social media, and SMS.
They can be used for a variety of purposes including:
Product Demos
Personalized videos can be used to showcase specific products to customers in a way that is more engaging and interactive than text-based descriptions or static images. Businesses can highlight features and benefits that are relevant to each individual customer's needs and interests.
For example, if a customer is interested in purchasing a new laptop, a personalized video can be created that shows the customer how the laptop works, demonstrates its features, and explains how it can meet the customer's specific needs.
Troubleshooting
Personalized videos can be an effective way to help customers troubleshoot technical issues with products or services. By creating customized videos that address each customer's unique problem, businesses can provide step-by-step guidance that is easy to follow and understand.
This can help to reduce frustration and increase customer satisfaction, as customers feel supported and empowered to solve the problem on their own.
Customer Support
Personalized videos can also be used to provide more personalized customer support. By creating videos that address specific customer inquiries or concerns, businesses can provide a more personalized experience that shows customers that their needs are being taken seriously.
For example, if a customer has a question about how to use a product, a personalized video can be created that provides clear instructions and tips for getting the most out of the product. This can help to build trust and loyalty with customers, as they feel that the business is invested in their success.
Onboarding
Personalized videos can be used to welcome and onboard new customers by providing them with a visual and interactive introduction to your product or service. The video can walk the customer through the sign-up process, highlight key features and benefits, and provide tips and best practices.
This can help to improve the customer's understanding of your product or service, reduce confusion and frustration, and ultimately lead to a better customer experience.
Upselling and Cross-selling
Personalized videos can also be used to upsell and cross-sell products or services to existing customers. By using data such as purchase history and browsing behavior, businesses can create personalized videos that showcase products or services that are relevant and interesting to the individual customer.
The video can also highlight the benefits and features of the product or service, as well as any promotions or discounts that may be available. This can help to increase sales and revenue, while also providing a personalized and engaging experience for the customer.
Thank You Messages
Personalized videos can be used to send thank you messages to customers after a purchase or other interaction with the business. The video can express gratitude for the customer's business, highlight their loyalty, and provide a personalized message that shows the business values their relationship with the customer.
This can help to strengthen the customer's connection with the brand, increase customer loyalty, and encourage repeat business.
Abandoned Cart Recovery
Personalized videos can also be effectively utilized in the abandoned cart recovery process. When a customer leaves items in their online shopping cart without completing the purchase, a tailored video message can be sent to remind them of the abandoned items and entice them to return to the website to complete the transaction. The video can highlight the specific products left in the cart, offer time-sensitive discounts or promotions, and emphasize the value and benefits of the products.
Incorporating personalized videos in the abandoned cart recovery strategy not only serves as a gentle reminder, but also demonstrates a proactive approach to customer care, reinforcing the business's commitment to providing an exceptional shopping experience. By addressing potential concerns or barriers that may have led to cart abandonment, these videos can effectively boost conversion rates, reduce cart abandonment, and foster stronger relationships with customers.
Reactivation and Win-Back Campaigns
Personalized videos can play a significant role in reactivation or win-back campaigns for customers who have become inactive or disengaged with the brand. These targeted videos can remind customers of their previous positive experiences with the business, showcase new product offerings or services, and present exclusive promotions or discounts tailored specifically for them.
To create an impactful reactivation video, it is essential to analyze customer data to understand the reasons behind their inactivity. This information can be used to craft a compelling message that addresses their specific needs or preferences, reigniting their interest in the brand. Additionally, incorporating a sense of urgency or a limited-time offer in the video can encourage customers to take immediate action.
By leveraging personalized videos in reactivation and win-back campaigns, businesses can demonstrate their dedication to maintaining a strong relationship with customers and effectively re-engage them. This approach can help to increase customer retention, drive revenue growth, and enhance overall brand loyalty.
Event Invitations
Personalized videos can be used to invite customers to events or other special occasions. The video can be personalized with the customer's name and provide details about the event, including date, time, location, and any special features or attractions.
This can help to increase attendance and engagement for the event and at the same time, provide a unique and personalized experience for the customer.
Product Launches
Personalized videos can be used to announce and promote new products or services to customers. The video can showcase the features and benefits of the new product or service, as well as provide a personalized message that shows how much the business values the customer's interest and feedback.
This can help to generate excitement and interest for the new product or service, while also giving the customer a personalized and engaging experience.
The impact of personalized videos on customer lifetime value
Customer lifetime value (LTV) is a key metric for businesses. LTV measures the total amount of revenue a customer is expected to generate over the course of their relationship with the business.
Personalized videos can have a significant impact on LTV, as they can help to create a more engaging and memorable experience for customers. This can lead to increased customer loyalty and higher repeat purchase rates.
Personalized videos can significantly boost customer engagement. This increased engagement can lead to higher conversion rates, as well as increased customer loyalty and lifetime value.
Personalized videos can also help businesses to stand out from their competitors. By providing a unique and memorable experience for customers, businesses can differentiate themselves from their competitors and build customer loyalty.
Examples of successful personalized videos for customers
Here are a few examples of companies that have successfully used personalized videos for customers:
Bruce Bolt, a baseball glove company, used personalized videos in their email marketing campaigns. They created custom videos for customers who had purchased a glove, thanking them for their purchase and providing tips for how to care for and break in their new glove. This personal touch helped to increase customer loyalty and resulted in a 23% increase in email open rates.
Vani-T, a beauty company, used personalized videos in their customer service. When customers reached out with questions or concerns, the company would respond with a personalized video, addressing the customer by name and providing a solution to their issue. This helped to create a more personalized and humanized customer service experience, resulting in a 70% reduction in customer complaints and a 33% increase in customer retention.
Ava Estelle, a skincare company for African American people with hyperpigmentation problems, used personalized videos throughout their customer lifecycle. When a customer expressed interest in a particular product but abandoned the cart, the company would send them a personalized video showcasing the value of the product and providing additional information. This personal touch helped to increase sales and resulted in a 40x return on investment for the personalized video campaign.
These are just a few examples of ecommerce brands that have successfully used personalized videos for customers. The key takeaway is that personalized videos can be a powerful tool for increasing engagement, brand loyalty, and ultimately, sales.
Implementation and best practices for personalized videos for customers
How can you make sure your personalized videos are effective?
Keep them short and sweet
Just like with Chewy's handwritten notes, customers appreciate the thought and effort that goes into creating something just for them. But they don't want to spend 10 minutes watching a video. Keep your videos under two minutes and focus on the key message you want to convey.
Choose the right ecommerce video platform
Make sure the platform integrates seamlessly with your ecommerce platform, offers customization options such as adding your own branding and messaging, and provides analytics so you can track the success of your personalized videos.
Tailor them to your customer’s profile
It's important to use customer data to create personalized videos that are tailored to each individual customer. This data can include purchase history, browsing behavior, and preferences.
Take an omnichannel approach to distribution
Businesses should use a variety of channels to deliver personalized videos, including email, social media, and SMS. By delivering them through a variety of channels, businesses can provide a more engaging and personalized experience for their customers.
Monitor their performance regularly
Finally, it's important to track the impact of personalized videos on customer engagement and lifetime value. By monitoring these metrics, businesses can determine the effectiveness of their personalized video strategy and make adjustments as needed.
Generative AI: The future of personalization in customer service
The future of personalization in customer service is bright. As AI technology continues to improve, businesses will be able to create even more personalized experiences for their customers. Generative AI, in particular, holds promise for creating personalized videos at scale.
Generative AI uses machine learning algorithms to create videos that are customized for each individual customer. This technology can help businesses create personalized videos at scale, providing a more engaging and personalized experience for their customers.
How AI-generated videos can enhance the customer experience
Ryan Cohen's Chewy serves as a powerful reminder that the personal touch is still important in ecommerce. While AI has made it easier to scale personalization, it's still important to make customers feel valued and appreciated.
Personalized videos offer a cost-effective and scalable way to create emotional connections with customers and take personalization to the next level.
As AI technology continues to improve, businesses will be able to create even more personalized experiences for their customers. By utilizing AI-generated videos, businesses can create personalized videos at scale, providing a more engaging and personalized experience for their customers without having to hire a human editor.
Maverick uses AI-generated video to help ecommerce stores have personalized interactions with each of their customers across their journey. Start boosting your customers’ lifetime value (LTV) today with personal videos at scale!
