Customers expect businesses to treat them as individuals, not as faceless numbers. Personalisation – using customer data to tailor products, services or communications – has become a key customer experience trend. A McKinsey study found 71% of consumers now expect personalised interactions. When businesses deliver, the payoff can be huge: McKinsey reports that companies excelling at personalisation generate 40% more revenue from those efforts than average performers. For Australian SMEs, this trend offers a big opportunity. By making customers feel known and valued, businesses can boost loyalty, repeat sales and overall performance.

Why Personalisation Matters for Customer Experience

Personalisation matters because it makes customers feel valued and understood. In practice, this means recognising a customer’s past purchases or interests and delivering relevant offers, content or service. For example, if a local café remembers your usual order, you feel special and likely to return. Research backs this up: 72% of consumers expect businesses to “know their interests” as individuals. When that doesn’t happen, frustration follows – McKinsey notes 76% of people get annoyed by non-personalised interactions.Customers can easily switch brands, so failure to personalise risks losing business.

On the flip side, customers reward personalisation. Over three-quarters said receiving personalised messages influenced them to consider a brand, and 78% said it made them more likely to buy again. Deloitte finds brands that excel at personalisation are 71% more likely to report improved customer loyalty. And personalised experiences even drive revenue: 

McKinsey reports a 10–15% sales lift (sometimes up to 25%) after personalisation efforts. In short, personalisation is now expected by customers and delivers measurable results in customer satisfaction and business performance.

Personalisation Trends and Best Practices

Emerging trends make personalisation more powerful. Advances in AI and analytics let companies deliver hyper-personalisation at scale. For instance, machine learning can analyze browsing and purchase history to suggest products in real time. Even small businesses can use affordable tools (email marketing, CRMs, customer surveys) to gather data and automate tailored offers. 

A recent Deloitte study highlights a gap: while brands report personalising 61% of interactions, consumers notice only 43% as truly personalised. The lesson for SMEs is to bridge this gap by focusing on what matters to customers. Practical best practices include segmenting your audience (e.g. by buying habits), using personalized email content, and empowering staff to recognise repeat customers. Importantly, always respect privacy – let customers control how they want to be reached. Done right, personalisation becomes a value exchange: customers share data and loyalty in return for more relevant service.

Examples of Personalisation

Big brands provide inspiration, but SMEs can follow suit with their own spin. For example, an online retailer might display “Recommended for You” products on the homepage based on past buys, much like Amazon’s famous suggestions. A local hotel could use guest data (past visits, preferences) to upgrade repeat customers or send them special offers. In hospitality, Ritz-Carlton exemplifies this: their guest database notes every preference (from pillow type to dining habits). Forbes reports 82% of guests who received personalised service at Ritz-Carlton reported higher satisfaction.

Another example: an SME café could send a coupon on a customer’s birthday, or a bookstore could email recommendations when a customer’s favorite author releases a new title. These are straightforward personalised touches. On the tech side, companies like Google, Netflix and Spotify use algorithms to personalise content (movies or playlists), and these approaches scale even for smaller players via available software tools. The key is to make each customer feel the business knows them. For instance, the Australian fashion retailer THE ICONIC uses customers’ browsing and purchase history to offer tailored product suggestions and dynamic landing pages – a simple form of tech-powered personalisation.

Measuring Impact and Driving Performance

Personalisation drives results. Data shows top-quartile personalisers grow revenues much faster. Boston Consulting Group notes personalisation leaders grow top-line revenues about 10 points faster annually than laggards, potentially adding trillions to the global economy. For SMEs, even a small lift in sales can make a big difference. Consider: Deloitte finds retailers strong in personalisation are 48% more likely to hit their revenue targets.

Measuring the effect is essential. Track metrics like NPS, repeat purchase rate, customer lifetime value, and retention after a personalisation campaign. Many businesses see ROI quickly: for example, one study found companies that shifted to top-quartile personalisation would unlock over $1 trillion in value (across industries). 

For an SME, this could translate to more consistent growth. Monitor customer feedback closely – tools like Net Promoter Score or surveys can capture how personalized interactions improve loyalty. Remember, the best metric of success is long-term customer loyalty: This year Lexus in Australia was reported to be the best brand for customer service, by Roy Morgan for the third time. The Lexus customer satisfaction rating of 98.2% was an all-time high. Deloitte found personalisation leaders report much higher loyalty levels.

 Implementing Personalisation: Practical Tips for SMEs

Getting started with personalisation doesn’t require rocket science, but it does require a plan. First, gather data legally and ethically. This could be as simple as an 80/20 analysis, or tracking sales history, loyalty program info or preferences signaled by email click rates. Use affordable CRM or email marketing platforms (Mailchimp, HubSpot, Campaign Monitor) to store this data.

Next, segment and tailor. Group customers by common traits (e.g. location, purchase frequency or category preference) and craft messages for each group. For example, an outdoor gear store might email campers differently than city run enthusiasts. Always write messages in a friendly, conversational tone – speak to each segment’s interests and problems.

Another tip: empower your team to personalise in person. If an employee learns a repeat customer’s name and preference (say, a barber remembering a favorite hairstyle), that personal touch reinforces the data-driven personalization online. Training staff to use customer profiles (even simple notes in a register) helps deliver consistency across channels.

Finally, test and iterate. Try small experiments (A/B tests) like two different subject lines or product recommendations and see which works better. The most successful personalisation is often data-driven, so use Google Analytics or your sales platform to see what customers respond to.

Overall, personalisation is a trend that any SME can and should adopt. By delivering relevant experiences — whether through digital tools or a personalised service touch — businesses boost customer satisfaction and gain a performance edge.

Ready to harness personalisation for better results? We can provide tailored guidance to help your business implement customer-centric strategies.