How (and why) small businesses should lean into personalization this holiday season

According to reports, companies that offer some form of personalization, whether through customer interaction or products they sell, grow 40% faster than companies that don’t. Plus, because many consumers have come to expect some level of personalization, it can be a deciding factor for whether customers return to your business or not. The same study found that 78% of customers said that receiving personalized communications made them more likely to repurchase from a brand and refer that brand to a friend. 

Standing out is especially important during the holiday season. Trend foresights for holiday marketing show that buyers are becoming pickier with their purchases. And, more customers value personalization, thoughtful custom products, and customer interactions when choosing their next holiday purchase. 

What exactly is Personalization?

While personalization can have various meanings depending on the field you’re in, in general, personalization in marketing is simply using what you know about your customers (think customer data) to tailor messages, product or service positioning, and experiences to a customer’s preferences–and it can be achieved at just about any touch point during a customer’s interaction with your business. 

And, customers tend to respond positively to thoughtful personalization like a post-purchase message. 

Here are a few examples of personalization in retail:

1. Offering personalized gifts 
2. Giving product recommendations based on customer preferences or tastes
3. Sending timely communications either about new products or recent purchases 
4. Simplifying navigation choices or presenting products or services to website visitors based on what you know about them 
5. Following up about products in a customer’s online shopping cart
6. Using customer names in promotions or marketing campaigns 
7. Tailoring marketing or informational content to customers based on their preferences

Engaging various forms of personalization can help create memorable customer interactions, boost sales, and even help build customer loyalty to your brand. 

Leaning into personalization 

The key to creating a personalized experience is knowing your customers–what they like and what they don’t. That means capturing and remembering information about your customers, so you can understand them and their shopping patterns better. Years ago, the only way for business owners and shopkeepers to know their customers was through their in-person interactions. Today, there are lots of ways for business owners to get to know their customers. 

A well-designed POS system is foundational to capturing and remembering what’s important to your customers. It can help you track inventory movement, produce reports with an analysis of what your customers enjoy, and identity opportunities to engage customers and give them more of what they want. 

Once you’ve collected and analyzed your customer data, the next step is to make a plan. Identify any gaps in personalized interactions your business has, possible solutions, and the resources you have available to personalize your customers’ experience. 

For instance, maybe you want to unveil a new product. One strategy you could use is to offer a sneak peek, product sample, or even a small gift card to your loyal customers before that product launches. That gives loyal customers a reason to come back and shop all your products and builds anticipation and excitement around your new product.

Here are more ways you can integrate personalization into your small business:

1. Send a personalized welcome email offering a coupon or discount to first-time customers and an invitation to your loyalty program
2. Offer complimentary gift wrapping for first-time customers or as a reward for customers enrolled in your loyalty program 
3. Send a thank you email with a discount code to customers who make a large purchase

READ: 5 ways to increase customer loyalty

Investing in handwritten (or personal) notes

As consumer interactions become increasingly digital on e-commerce and social platforms, customers can lose out on personal interactions that humanize the customer experience and make it memorable. Handwritten notes can add that personal touch and can be an effective way to grow an audience. 

And, when it comes to receiving mail, just under half of Americans of all ages (49%) look forward to checking their mail each day with 57% of 18- to 34-year-olds finding direct mail extremely or very useful–that’s higher than any other age group. Over half (54%) of all ages groups find reading through mailed advertising enjoyable. And, a whopping 78% of consumers prefer receiving postcards over other types of mail. What’s more, 74% of marketers agree direct mail delivers the best conversion rate of all the channels their companies use today–that includes handwritten notes sent by mail. 

The holidays are a great time to send out handwritten direct mail, but also consider sending personalized messages for birthdays. Including branded stickers or other simple branded merchandise can be a great way to build your brand with new customers. And, if you find your time is too limited to actually write a note by hand, you can consider creating a simple template of a thank you note, personalize it with your customers name, and sending it by mail to your customer.

Remember, a powerful POS system can help you keep track of important customer information, like address, birthday, preferences, and much more.

Offer personalized gifts and experiences 

Another effective personalization strategy is to offer custom gifts—especially during the holiday season or for birthdays when people are looking to buy something special for a loved one. Personalized gifts can help your brand stand out from the competition and make your brand memorable for customers. 

Here are a few items that can be easily customized:

1. Kitchen items, like aprons, utensils, serving dishes, glasses, and more
2. Holiday cards and cards for special occasions
3. Jewelry
4. Tote bags, hats, t-shirts, and other clothing items
5. Books, journals, and note pads

Even if your business doesn’t typically sell these kinds of items, you could offer these items seasonally with big-ticket purchases, for instance. 

And, don’t forget personalized experiences—like a personal invitation to special business hours for your best customers, a personalized menu for loyalty program participants, or special events for first-time customers. Be as creative as you’d like—the goal is to make your customers feel noticed and appreciated. 

Wherever your business is on its journey to providing a more personalized experience for customers, Clover is here for you. Its dynamic POS system accepts all types of payments and can help make building and growing your business easier.

Editorial Team

Holiday, Marketing, Retail, Run your business

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