customer experience management reports
Published on : Feb 19, 2024
Medallia, Inc., the global leader in customer and employee experience, today announced the findings of its new research report, Understanding Personalization Efforts in the Hotel and Retail Industries.
In a research study of 1,749 hotel guests and 1,905 retail consumers, Medallia found a strong link between personalization and overall satisfaction, validating earlier research that showed 61% of consumers are willing to spend more with companies if they offer a customized experience. But the new study revealed hotel and retail brands have significant opportunities to improve and capture more revenue: Just 23% of consumers report experiencing high levels of personalization after recent hotel stays and only 26% say the same after recent retail interactions.
The study also found customers who rate the level of personalization they received as a 9 or 10 on a scale of 0 to 10, with 10 being the most personalized, are far more likely to also rate their overall satisfaction as very high. Those who do not perceive their experience as being personalized report lower satisfaction ratings.
“It’s no surprise to see the clear link between personalization and satisfaction, but also not surprising to see brands struggling to keep up with consumer expectations for more customization,” said Andrew Custage, Head of Insights for Medallia Market Research. “The challenge for companies — especially in hospitality and retail, where consumers frequently engage across multiple digital, contact center, and in-person touchpoints — has always been capturing and understanding customer data fast enough to act on it. But generative AI technology is now making it possible for brands to automate insights and actions at scale to deliver more personalized experiences.”
Other key findings from the new report include:
The greatest opportunity to maximize personalization for hotel guests is during the stay itself
Retailers deliver more personalized experiences at certain touchpoints than others
Andrew Custage presented this new research at Medallia’s Experience ‘24 conference in early February, where the company also announced four new generative AI capabilities and a new Agile Research solution.
Survey Methodology
Medallia Market Research gathered responses from 1,749 hotel guests and 1,905 retail consumers about a recent visit or transaction in November 2023 using Medallia Agile Research and Medallia’s Sense360 research panel. Weighting has been applied based on U.S. census distribution of age and gender.