According to research from McKinsey & Company, 71% of customers expect personalized experiences and 76% of them get frustrated when they don’t receive them. Furthermore, businesses that prioritize personalization can increase their revenue by a whopping 40%.
The message is clear: By tailoring your messaging and service to align with the unique buying habits, needs, and preferences of your customers, you can build trust, gain loyalty, and ultimately, increase your bottom line.
Key Insights
- By personalizing the way you market and interact with your customers, you can improve engagement rates, stand out from competitors, build stronger customer relationships, boost loyalty, and increase revenue.
- Shopify, HubSpot, Pipedrive, BigCommerce, and Constant Contact are several examples of software solutions that can simplify your personalization efforts.
- Before you personalize your marketing messages and/or service, consider what each of your customers needs, wants, and prefers at the exact time you interact with them.
Why is Personalization Important for Small Businesses?
Personalization is vital for small businesses because it can improve engagement rates, differentiate them from competitors, build stronger customer relationships, boost loyalty, and increase revenue. Let’s take a closer look at each of these benefits:
Improve Engagement Rates
It can be frustrating to spend a lot of time and money on marketing materials that simply don’t convert. The solution? Personalization. When you personalize your messages with content that’s specific and relevant to the various customers you’re targeting, you’re more likely to increase open rates, clicks, and most importantly, conversions. Before you finalize any ad or email, put yourself in your customer’s shoes. Ask yourself if the message you’re sending meets their specific needs.
Stand Out From Competitors
Regardless of your industry, there’s a good chance there are many other businesses selling similar products and services. Through personalization, you can differentiate your brand from the competition and motivate potential customers to trust you over others in this highly competitive marketplace. Without a personalized experience, your business may slip through the cracks.
Build Stronger Customer Relationships
At the end of the day, customers want to feel valued. By meeting their particular needs and preferences through personalized messages and service, you build trust, which often leads to long-term customer relationships. Since new customers are more difficult and expensive to attract than retaining current ones, this is a huge plus.
Boost Loyalty
Customers who appreciate your brand’s personalization efforts are more likely to return to you and generate repeat business. In addition, they may share your offerings with their friends and family and essentially become ambassadors for your brand. Note that word-of-mouth referrals are ideal, especially if you’re a startup or small business with a tight marketing budget.
Increase Revenue
Perhaps the greatest benefit of personalized interactions is more conversions and revenue. When you’re speaking to your audience in a way that resonates with them, they’re more likely to go ahead and buy your products and/or services. When you consider the potential revenue boost you’ll get, the extra time and money it might take to personalize your marketing messages and service is well worth it.
Software with Personalization Capabilities to Consider
Fortunately, there are a number of software options that can make it easier and more efficient to deliver highly personalized experiences to your customers. Here are several of our top picks for small businesses who want to simplify the way they personalize:
Shopify
If you’re an ecommerce biz looking to personalize, you can’t go wrong with Shopify. Even the free plan comes with a custom domain as well as templates and themes to help you tailor your website to your unique brand. You’ll also be able to filter and group your customers so you can reach the right people at the right times with the right messages. Other Shopify personalization capabilities include custom apps, localized selling with custom markets, local domains and storefronts, and a long list of third party integrations.
Pros
Free plan available
Specifically for ecommerce businesses
Plenty of local selling features
Cons
Can be overwhelming for new users
Some personalization tools can be difficult to implement
Paid plans can get expensive as you scale
HubSpot
If you’re searching for a comprehensive personalization software that lets you unify your marketing, sales, and customer service teams, HubSpot is worth exploring. You can pair its AI-powered content creation tool with its personalization tokens to draft tailored emails for different groups of customers. HubSpot also makes it a breeze to automate these personalized emails and create targeted deals and offers.
Pros:
All-in-one solution
Intuitive interface
Robust marketing tools
Cons:
No A/B testing or custom reporting on lower-tier plans
Add-ons and higher-level plans can add up quickly
Annual contracts
Pipedrive
If your sales process is your top priority, Pipedrive can help you personalize it with ease. With Pipedrive, you’ll be able to create pipelines that are unique to your sales cycle, add custom fields and several currencies, and use the sequences tool to nurture your leads through targeted emails and task reminders. Pipedrive also offers a robust marketplace with more than 500 integrations so you can connect to the tools you’re already using.
Pros:
Specifically for sales teams
Flexible, affordable plans
AI sales assistant offers personalized insights and recommendations
Cons:
Doesn’t offer a free plan
Limited task management features
May be too sales focused for some businesses
BigCommerce
BigCommerce is a solid personalization software for ecommerce businesses looking for a flexible, scalable plan. With BigCommerce, you’ll be able to personalize coupons and pop-up offers based on each user’s behavior and add dynamic product recommendations that depend on what they recently viewed and placed in their shopping cart. In addition, BigCommerce allows you to modify pricing to each user’s browsing and purchase history.
Pros:
No transaction fees
Impressive multichannel capabilities
All plans come with real-time shipping quotes
Cons:
Each plan caps sales volume
Setup can be complicated
Limited SEO features
ConstantContact
For a marketing software that offers no shortage of personalization features, ConstantContact is it. No matter which plan you choose, you’ll get drag-and-drop email templates and access to 300+ integrations. The top-tier Premium plan also includes contact, engagement, and ecommerce segmentation—making it easy to create and send targeted content to each of your customers.
Pros:
Built-in CRM system
Supports tickets and events
Variety of social media management tools
Cons:
Contact segmentation is only for higher-level plans
Minimal automation capabilities
Caps email sends based on plan
How Small Businesses Are Leveraging Personalization To Succeed
In today’s day and age, startups and small businesses in various industries are using personalization to attract and retain their customers so they can take their ventures to new heights. Here are several real-life examples to inspire you:
Muncly: Sales and Marketing Consulting Firm for Small Businesses
How The Business Incorporates Personalization:
Muncly is currently relaunching a personalization approach that they successfully used in the past. The company built quizzes around five strategic areas of its clients’ businesses. Each quiz identifies strengths and weaknesses, and based on the weakest area, they assign each client to a different sequence. Those sequences then trigger tailored email campaigns that address the pain point revealed by the quiz.
Also, if someone visits a specific service page on the Muncly website, they show them a matching retargeting campaign from one of seven ad groups. If that visitor eventually converts, they continue by enrolling them in a customized sequence connected to that exact interest or keyword.
Advice From a CEO:
“The best place to start is with customer segmentation. It doesn’t need to be complicated. Something as simple as an ABC analysis (which identifies customers who bring the most revenue or value) can help you prioritize and tailor different offers,” says Jeff Tilley, founder of Muncly.
“For example, one group has pain A, another has pain B, and another has pain C. Once you define these groups, you can align marketing campaigns, product experiences, or even website pages to those segments. It does take some technical effort to set up, but it’s entirely doable, and the payoff is much higher engagement and stronger customer loyalty,” he adds.
Bronzebody: Sun Care Supplement Company
How The Business Incorporates Personalization:
For Bronzebody, personalization matters because wellness isn’t “one-size-fits-all.” Skin type, lifestyle, sun exposure, and even cultural beauty habits differ widely. If the company didn’t personalize, they’d risk providing advice or products that don’t truly serve each individual customer.
The founder believes that personalization builds solid trust and long-term loyalty because customers feel seen and understood. As a result, Bronzebody uses Shopify’s personalization tools and apps to tailor the customer journey from the moment someone lands on its website. Its returning customers see product recommendations based on their past purchases, while new visitors are guided toward the best options for their needs.
Advice From the Founder:
“Start simple. You don’t really need a huge tech stack right away. Just begin by asking your customers the right questions. A short quiz, survey, or even a welcome email asking about their biggest needs can go a long way,” says Elsha Kim, founder of bronzebody.
“Then, use that data to create meaningful touchpoints. Personalization isn’t about being flashy all the time. Sometimes, it’s about being relevant and making your customers feel like you’re building something just for them,” she adds.
Universal Inspections: Vehicle Inspection Company
How The Business Incorporates Personalization:
Universal Inspections customizes every inspection conversation based on the customer's knowledge level and priorities. When a single mom calls about a $8,000 Honda Civic, for example, the company focuses on safety items and upcoming maintenance costs that could strain her budget. For someone buying a $40,000 truck, Universal Inspections dives into the frame integrity and powertrain diagnostics they specifically requested.
Its field inspection software builds custom report templates for different vehicle types and customer profiles. A basic family sedan gets a safety-focused checklist, while classic cars get detailed documentation with photos of original components. This targeted approach means customers get actionable information instead of generic checklists that overwhelm or underwhelm them.
Advice From the Founder:
“Start by asking customers three questions before any service: their experience level, their biggest concern, and their budget expectations. Then, adjust your communication style and service depth accordingly. This makes the difference between a satisfied customer and a referral source,” says Howard Lutz, founder of Universal Inspections.
Near You Pest Control: Pest Control Company
How The Business Incorporates Personalization: Personalization is a top priority for Near You Pest Control because every home has different pest pressures. For example, a house near open fields faces different rodent issues than one with mature landscaping that attracts different insects.
The company tracks every service call in its customer platform—noting specific problem areas, treatment methods that worked, and seasonal patterns for each property. When pest control experts return for follow-ups, they know exactly what was treated last time and can adjust accordingly.
Near You Pest Control has implemented a "Lego Dan" program where they leave personalized Lego figures at each completed job site and run monthly photo contests where customers show their Lego Dan in action around their pest-free homes. This creates individual connections while gathering valuable feedback about our service effectiveness.
Advice From the Owner:
“My advice is to document everything about each customer interaction in whatever system you can afford. I started with graph paper and moved to digital tracking as we grew. The data becomes a gold mine for creating those personal touches that turn one-time customers into loyal advocates who then refer to their neighbors,” David Welch, owner of Near You Pest Control.
Perfect Afternoon: Digital Marketing Company for International Businesses
How The Business Incorporates Personalization:
After 20+ years in the digital marketing industry, the founder of Perfect Afternoon has seen businesses lose millions because they treat a SaaS startup the same as a manufacturing company. The company had one enterprise client almost walk because its initial proposal used generic "increase web traffic" language instead of addressing their specific need for lead qualification in their 18-month B2B sales cycle.
Perfect Afternoon now uses HubSpot's lists feature to segment prospects based on website behavior and contract timing. For example, they automatically target contacts in month three of their contract with complementary upsell content, while prospects who visit their pricing page multiple times get discount codes. The company’s client saw 40% better email engagement when they switched from monthly newsletters to behavior-triggered messages.
Advice From the Founder:
“Use your CRM data to create specific customer segments, then build workflows that address real pain points at the right time. We've found that sending invoice management tips to six-month-old businesses just before tax season converts infinitely better than generic "grow your business" content. The key is timing relevance with actual business needs, not just demographic data,” says Dwight Zahringer, founder of Perfect Afternoon.
In the Market for Personalization Software? Business Heroes Can Help
If you’re looking to simplify your personalization efforts, Business Heroes is an invaluable resource. Simply fill out our short questionnaire and receive recommendations for personalization solutions and any other software needs you might have. Find the best AI software solution for your business, today!
Frequently Asked Questions
Is personalization important for every business?
Yes, personalization in marketing and service can mean the difference between a business that thrives or simply survives. If your goal is to grow your customer base and increase revenue, it’s essential, especially in today’s competitive marketplace.
What is the best software for businesses who want to implement personalization?
The ideal personalization software depends on your unique budget, goals, and personal preferences. Shopify, HubSpot, Pipedrive, BigCommerce, and Constant Contact are several top examples of top options to explore.
What does customer segmentation mean?
Customer segmentation refers to dividing customers into smaller groups based on common behaviors or characteristics, such as income, interest, and buying habits. It can help you personalize your marketing to accommodate varying customer needs and in turn, increase conversions.
Is Shopify good for personalization?
Yes, Shopify is a reputable software for ecommerce businesses searching for a way to personalize their online stores. It offers segmentation capabilities plus localized selling with custom markets and third-party integrations.
