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Hyper personalization for increased conversion and customer affinity

 

Mahendra Bhandarkar
24 March 2019

Today’s customers are pressed for time as they strive to balance between the multitude of priorities and other important commitments in their lives. Paucity of time and intense competition have reduced the attention span of customers greatly and they look for quick results. According to a Gartner 2017 report, value adds to the customer of the future, would need to focus on the unique and innovative bundling and personalization of those offers or products. As customer attention span reduces and their loyalty keeps shifting, personalizing to the “segment of one” becomes the need of the hour. Despite the clear cut statistics and conviction towards personalization favoring increased conversion, 68% of marketers say that data-driven personalization is “the most difficult online tactic to execute”. (Source: Campaign Monitor). Lack of unified customer intelligence, 360 degree customer centricity, and real time interactions become roadblocks to offering a hyper personalized customer experience.

Customer Experience Skewed by Silos and Ill-timed Interactions

Lack of holistic customer centricity: Besides disparate systems that do not talk to each other, organizational silos hamper holistic customer centricity. Customer needs across various functional touch points are not understood holistically. Customer feedback and behavior spanning various services and channels are not heeded or addressed collectively. Customer needs and interests are therefore not addressed, which leads to a dip in customer satisfaction and eventually customer affinity. An integrated data management technology is the need of the hour.

Lack of unified customer intelligence: Data and analytics form the core of personalization. Customer analytics require customer data to be accessed from all disparate internal and external sources and systems such as CRM, purchased data, social networks, ERP, and mobile apps. Also, the output/results of customer analysis requires to be fed into another technology platform to deliver personalization. It is therefore important to have a unified view of the data for every customer, which would need integration between disparate systems and online channels to achieve this. 

Lack of real time interactions: The evolution of customer expectations, competition, and technology keep egging both business and marketing, towards real-time interactions. Customers need to be intercepted on a real time basis by either quickly throwing up a personalized offer or a remarketing effort.

Best Practices for a Hyper Personalized Customer Experience

Initial Assessment and Customer Journey Transformation: Baselining of key customer satisfaction goals and estimating effectiveness of personalization to achieve these goals is important; some goals may just require better change management and not necessarily personalization. The next step is to measure customer current state with parameters such as brand, multichannel adoption, and higher uptake of marketing offers. It is important to verify their current segmentation is accurate at this stage. Customer journeys must then be transformed to enable personalization and intuitiveness.

Data Unification: Meanwhile, steps must be taken to understand and identify silos that contain customer information and the pattern in which this information is stored. Once this understanding is in place, we would need to merge the offline or CRM data and online analytics to get a single and enriched view of the customer in a data management platform. Listening to the customer voice on social media by leveraging social tools will help you to anticipate their needs and provide insights into service issues. You can enrich this further by merging with any third party data about the customer. 

Segmentation and Targeting: Based on the insights derived from a unified view of the customers, you can integrate the data management platform with a targeting tool to target your segments and audience in a personalized way.

Customer Privacy: Remember, in your attempt to gain insights into your customers, you are mindful and respectful of their need for privacy as well as regulations such as GDPR that govern data privacy.

How does Hyper Personalization Impact your Campaigns?

  • Customer data unification can provide deep insights thereby opening up new revenue opportunities 

  • Emails that are personalized beyond the recipient’s name deliver transaction rates that could be six times higher

  • Campaigns that provide a personalized experience generate an average increase of 20% in sales

  • Segmented campaigns can increase revenue up to 76%

About the author(s)
Mahendra Bhandarkar

Mahendra Bhandarkar, Practice Head for Digital Marketing at TCS Interactive, comes with over 17 years of experience in software industry as a Technology Partner, Practice Lead, and Chief Architect providing thought leadership in new-age marketing solutions. He has architected, Led and managed large scale digital transformations across domains such as BFSI, Manufacturing, Retail, TTH, Telecommunications, and Hi-Tech industries across the globe. His experience spans customer experience solutions, multi-channel delivery, IP and accelerator creation.

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