Personalization is quickly becoming a customer expectation. Even casual internet browsing results in the offer of goods and services tailored to the individual’s interest based on the pages visited.
NB This is a viewpoint by Bob Dufour, president and CEO of Fusion.
Search for a pair of shoes, and you’ll later encounter ads reflecting that search on other websites and your own social media feeds and timelines.
Travel companies not approaching their customers with customized offers are not only missing a key revenue source but also disappointing the expectations of their customers.
In fact, a recent omnibus survey study conducted by Ipsos Public Affairs on behalf of Fusion found that 58% of consumers have purchased an add-on (or ancillary) product while shopping.
Clearly, they are already seeking personalized options. Are you giving them what they want?
Furthermore, 61% of customers report being open to buying an ancillary option that complements or enhances their main purchase.
Not only do customers want to personalize their shopping, they would be willing to spend more than planned if:
- the product sits nicely what is already in their cart (25%)
- they are offered an upgrade or enhance to a product in their cart (28%)
- they are offered a price break with multiple products (53%).
These results underscore the fact that customers seek customization and enhancements for their purchases and are willing to spend more on the right offers.
But many companies are missing the mark on personalization. Only 37% of consumers agreed that the ancillary products on offer were relevant to their interests or to the items they were purchasing.
In fact, 30% said they actively dislike add-on offers because they do not relate to their needs or interests.
To earn not only initial but also repeat business, companies have to better understand the demand for personalization.
Take a look at how even smart phones are customizable and customized - via the choice of case, selection of screen photos and even the ringtone.
Modern consumers are comfortable making choices; 49% reported they prefer to see all ancillary options available while shopping so they can choose what is best for them.
In a world of hyper-personalization, travel companies have an opportunity to earn more on ancillary sales while providing the experience that customers expect.
It’s a matter of making the right offer, to the right customer, at the right time using data that customers openly provide to companies for that very purpose. It’s not just a matter of mass offers or spamming—it’s about truly listening and personalizing customer interactions.
Digital insights and solutions can be harnessed not only to improve the customer journey, but to build a long-term, personalized relationship with current and future customers.
It’s a new age where customers demand a customized experienced.
NB This is a viewpoint by Bob Dufour, president and CEO of Fusion. It appears here as part of Tnooz's sponsored content initiative.
Fusion is also sponsoring the Tnooz Appy Hour at next week's Phocuswright Conference in Fort Lauderdale, Florida. If you are attending, the free networking and social event starts at 9pm on the Wednesday, on the second floor of the Convention Centre.
NB2 The study is not publicly available yet. For more details about the research mentioned above, please contact Donnie Schemetti at Fusion.
NB3Image by Shutterstock