Personalization must create value for the customer
Businesses have access to an increasing variety of customer information, engagement signals and analytical capabilities.
These resources create opportunities to deliver more relevant product recommendations, communications and customer journeys.
However, collecting more information does not automatically create a better customer experience. Personalization should begin with a clear understanding of the customer’s needs and the value of the proposed interaction.
Focus on meaningful customer signals
Customer behavior, transaction history, stated preferences and permitted engagement data can help organizations understand what might be relevant.
The appropriate combination of signals depends on the industry and the specific customer relationship.
For example, an eCommerce company might use browsing behavior and previous purchases to improve product discovery. An insurer might use customer preferences to improve the relevance and timing of policy-service communications.
Personalization should be limited to information that can be used appropriately and in accordance with applicable requirements and customer choices.
Connect personalization with the customer journey
Personalization becomes more useful when it supports the wider customer relationship rather than functioning as a collection of disconnected campaigns.
Organizations should consider how different interactions contribute to discovery, evaluation, purchase, onboarding, service and retention.
Data Engineering provides access to appropriate information, analytics identifies relevant patterns, and marketing technology helps activate personalized experiences across channels.
Establish responsible data practices
Customer trust depends on more than the quality of a recommendation.
Organizations should maintain appropriate controls around consent, privacy, data security, retention and access.
Personalization strategies should also allow customers to manage their preferences and communication choices where appropriate.
Measure relevance, not just campaign activity
Marketing teams should evaluate whether personalization improves the customer experience and supports business objectives.
Useful measures may include engagement quality, conversion, retention and customer feedback. The appropriate measures depend on the specific application and should be interpreted in context.
The objective is to create experiences that are useful to customers and sustainable for the business.
Related Services
- Marketing Personalization
- Customer Experience & Engagement
- Analytics & Business Insights
- Data Strategy & Design
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