Personalisation has become a necessity for all industries. It has reinvented the way marketing is imagined now. The E-commerce industry, in particular, has witnessed incredible reform and giants like Amazon and Flipkart have revolutionised the customer experience by bringing extensive personalisation for every user.
Why is personalisation so important, and why is it so vital for the growth and success of companies?
Customer personalisation is an amalgamation of customer data and preferences. A personalised approach offers a unique perspective to the customers and helps companies differentiate themselves to gain an edge over competitors.
With an abundance of choices, customers can quickly change their service providers if the experience isn’t compatible with their demands. When a platform offers great personalisation, users get targeted discounts and individual offers, helping companies create a sense of loyalty.
A comprehensive personalisation has been increasingly possible with growing technology like Artificial Intelligence, omnichannel systems, and Knowledge Base for call center. They have helped companies focus effectively on the overall customer experience and emphasise hyper-personalised experiences.
Personalization has enabled various industries to innovate the way they engage with their consumers. From inquiries and ordering to after-sales service, personalisation has taken hold of almost all aspects of digital sales, marketing, and self-service
Great personalisation also enhances customer engagement. If a customer likes something they see, they are bound to come back again and again. When it comes to pioneers of providing excellent digital personalised customer experience, one could think of Netflix.
A constantly evolving and changing UI enables more and more users to be hooked to the platform. Seamless personalisation is a solid foundation that could yield great customer engagement returns.
Organisations face a few tactical difficulties when it comes to starting things with personalisation. Data Organisation is the biggest challenge companies face. Storing, integrating, and meaningfully deriving relevant information is tricky. Quality Data scientists and analysts are hard to come by and even harder to retain.
More than 48 percent of companies identified the problems in acquiring and maintaining in-house experts as a significant concern in a survey by McKinsey. The same survey also revealed that 67% of companies did not have the proper tools to execute personalisation effectively.
Brands are increasingly witnessing challenging consumer demands, and competitors are readily available to sweep existing customers with even the slightest differentiation from the customer’s expectations.
When personalisation is effectively implemented, it does more than just making the customer happy! Personalisation offers a solid foundation for businesses to thrive and grow. They yield more leads and engagement in existing customers.
Trickle-down effects of personalisation:
McKinsey & Co. recently published an article mentioning eight core elements needed for a successful personalisation. These eight elements are segregated into four groups, with the first one being the Data Foundation.
Data Foundation contains just one element, “Data Management”, and deals with developing a multi-dimensional view for users as a backbone for analytics. Displaying accurate data is more important than showing an abundance of data. Decision trees software can play an essential role for increasing a swift customer experience .
“Decisioning” forms the next group in the essentials containing three segments: Customer Segmentation, Playbook, and Decision engine.
Customer Segmentation is the process of identifying triggers and behaviours of consumers, segmenting them, and evaluating them by giving a score. The playbook is the building of a library with relevant content and campaigns. Decisioning Engine or Campaign Coordination is developing a multichannel decision engine that prevents conflicting messages and interactions.
Then comes the “Designing” phase, which contains a couple of elements. First comes assembling a cross-functional team, preferably in a test & run culture, for quick results and securing the right talent, culture, and leadership.
The last group, Distribution, also has a couple of elements, with the first one being implementing the technology. Setting up the most effective and optimised technology is a complex task; companies could leverage their existing technologies to the peak if they’re hesitant in investing more in new technology.
The final element is a comprehensive testing of the platform without waiting for perfection. Improvement is guaranteed over time, given a solid approach is adhered to.
To effectively build a personalisation program and get the best out of it, retailers must create the experience’s end goal and objective. Analytics and technology professionals are the backbones of Data personalisation, and finding the right partner or experts to solve the problem for you could be critical. It’s all about greater customer loyalty, retention, market differentiation, and increased wallet share. I
Implementing personalisation could become a powerful weapon in a brand’s arsenal when offering a world-class customer experience. There will be challenges, but there are several seamless ways to overcome them.
A correct approach and focus on giving customers the perfect and unique experience must always be the priority. Delivering personalised customer experiences needs brands to adopt a customer-centric business model. Innovations are rapid in the industry, and we see new ways to store, analyse and extract valuable data. Businesses need to be on their toes and not miss out on something which offers long-term and consistent rewards. Using the best tools and enabling your teams to perform at their best will help create a better experience for the end-user.