How can brands effectively tailor their content and experiences to meet the unique needs and preferences of their users?
Effective personalization in real-time to meet user needs and preferences is much more than a hop, skip, and a jump. Comviva’s latest report, “The Business Value of Personalization,” offers a comprehensive four-step framework for winning the real-time personalization game.
The four stages of the framework are as follows:
- Change your personalization approach: Our research indicates that 80% of companies are still stuck in the nascent stages of personalization. They are missing out on the opportunity to boost customer engagement, loyalty, and revenue growth.
Personalization, when done right, can significantly enhance user experiences. By leveraging user data, companies can offer tailored recommendations, customized product offerings, and personalized user interfaces.
For example, a Middle-Eastern Communications Service Provider, has doubled its CVM revenue in two years, by adopting the correct approach to personalization. This involved developing 40+ AI/ML data models, including next – best offer (NBO) and churn models to target customers with personalized offers and recommendations.
- Turn data into an asset: Implementing effective personalization strategies comes with its fair share of challenges, particularly in the realm of data.
Today, simply having customer data is not enough. The real challenge lies in harnessing data’s value as a resource. Unfortunately, several companies are grappling with significant data-related hurdles that hinder their capacity to create individualized user experiences.
Many businesses struggle with data integration due to siloed systems and fragmented data sources. Disparate and inconsistent data-sets hinder the creation of a comprehensive user profile necessary for effective personalization. The goal of systematically collecting, tagging, and managing data is to gain valuable customer insights.
To overcome this challenge, organizations should invest in data integration solutions such as Customer Data Platforms (CDP) which can break down data silos to create a unified view of user data across business lines and facilitate real-time interactions and actionable insights.
- Redefine customer profiling. Gone are the days when companies could profile their customers based solely on demographics. While demographics such as age, gender, and household income may shed light on their preferences, they don’t tell the whole story.
Context and lifestyle-based profiling, on the other hand, takes into account, the customer’s in-moment interactions with the Brands’ assisted and digital touch points. This approach enables companies to create personalized experiences that are based on real-time data and insights, rather than broad generalizations.
Transitioning from demographic-based to context and lifestyle-based profiling serves as the foundation for scalable personalization.
For instance, a bank could prioritize a customer’s financial health and offer personalized guidance and suggestions based on their present financial standing. Alternatively, a grocery store could educate customers on buying healthy products that align with their dietary preferences and lifestyle.
- Make AI & automation core to real-time personalization. The advent of machine learning and automated workflows has moved the needle towards brands providing truly personalized experiences in real-time. Our research shows that companies are leveraging AI for personalization in several ways. AI-powered predictive analytics is being used to anticipate user needs and preferences based on their historical data and real-time behavior. Whereas prescriptive models are being deployed to personalize user experiences by suggesting relevant products, services, or content in real-time.
Real-time personalization is the key to winning the hearts and minds of today’s and tomorrow’s consumers. By embracing the four steps outlined above, businesses can craft exceptional customer experiences that foster engagement and loyalty. The time to act is now; start implementing these strategies today with cutting edge martech and become a market leader.
