Digital personalization: Adequate offer, audience and opportunity
As a company, we can have a wide range of products and services that, we suppose, satisfy the needs and interests of the client, but do they really do it? Is that the product, service or content that you want to consume? Digital personalization has the power to answer these questions.
These conjectures about what we think we know about the client, compared with the real user experience in the different channels and the perception that they have about the brand, are different faces of the same coin.
There is nothing more impersonal for the client than a product or service designed to sell, with the one-size-fits-all label on the back. This is the common place where companies fall, at some point: they look for customers for their products, but they do not offer solutions designed for them. How to get out of ignorance about what my client is looking for with the brand?: Offering personalized multichannel experiences, so unique, that they translate into conversions and loyalty.
What is and what is not digital personalization?
Digital personalization is the practice that provides a customer experience, aligned with their needs, intentions and the perfect context. This makes it easier for brands to offer people what they are looking for, through the use of different channels and the data received on their behavior and consumption trends.
Why do we refer to them as multi-channel personalized experiences? Because personalization can be implemented from applications, web pages, digital advertisements and searches, to call centers, sales consultants and physical stores.
It is common to think that retargeting and remarketing are synonyms for digital personalization, but they are not. Rather, they are recruiting tools that, with paid ads and campaigns, facilitate outreach to a wide range of people but do not provide tailor-made experiences.
Business objectives enhanced with personalization
All companies have business objectives to meet, to which they direct their efforts, with the personalization of experiences can be better achieved, aiming at the following objectives: Increase in conversions, greater customer loyalty, decrease in bounce rate , improve ROI, discover new products and increase retention and purchase frequency.
This will vary according to the experience of the business itself, the vertical in which it is located, the team within the company and the exact footprint of each client with their interests.
Personalization based on Artificial Intelligence.
The Artificial Intelligence approach provides better results in personalization, creating unique experiences for customers. Its versatility offers a unique experience for each person, facilitating one-to-one communication with the brand, in addition to modifying page navigation, streamlining search results and accurately recommending categories, products and promotions.
Personalization in the physical world, contrary to popular belief, is possible, it simply requires greater creativity and the ability to measure and integrate data about users behavior in it.
In the digital world, we have the possibility of executing actions and “affecting” the users’ environment in a faster way since the services can be as personalized as the level of knowledge of the client allows it.
The depth provided by the data analysis, supported by Artificial Intelligence, is incomparable, allowing not only to identify traditional segments (sociodemographic, value and frequency of consumption), but based on similar behaviors. This information allows us to react to consumer trends and create new business opportunities from them.
You can also find new segments or audiences of interest, previously ignored by conjectures that were not supported by data. Affinity for new categories or products with a higher conversion rate are the kind of discoveries to which, thanks to artificial intelligence, relevant personalized experiences can be shaped.
Personalization in 4 of the main verticals
- The great advantage in the media is that people consume content for real interest, this allows them to fully trust the segmentation carried out, beyond the cookies that trigger an offer, assuming that the user who searched for it was user 1 and not user 2 of the same browser.
- Personalization in Telco: The biggest challenge of personalization in this vertical is to explain the offer, since in the wide range of services offered by telecommunications companies, the user can become overwhelmed, losing sight of their initial need. For this reason, efforts should be directed, mainly, to detailing the offer according to the consumption behavior of each user.
- Personalization in Retail: In this vertical, something special happens: the same product can reach the basket of two different customers for different reasons. This event requires a deep knowledge of the consumer, that identifies the true motivators of purchase and thus, create personalized messages, aligned to the purchase objectives and context of each one.
- Personalization in banking: Is it the ideal moment in the client’s life to offer him a certain product? Personalization, along with bank transactions, help deploy models of the right offer at the right time. Does the customer want to purchase a car, start their mortgage or make a portfolio purchase? With artificial intelligence, it is possible to obtain this data and reach such a level of personalization, creating a deep relationship with the user that in turn will represent direct sales.
Any recommendation, from products, categories, brands, articles or promotions, may be irrelevant if they are not made at the right time in life and according to your need. Therefore, custom advice comes into play a crucial role in the user experience in any medium; communicating prioritized services especially for each person.
Rules-based or Artificial Intelligence personalization?
There are quite a few methodological strategies to deploy personalization. The first thing to take into account is if you are going to work from rule-based customizations or, conversely, from Artificial Intelligence.
- Rule-based personalization: Here the segments can be broad or specific, previously defined by the same statistics. The selection of experiences and formation of groups is made based on the creation and implementation of the rules manual, by the marketing and sales teams. The rules, in this case, are ideal for pre-existing people and customer-based marketing, geo-targeting, and any segment-based communication.
- Personalization based on Artificial Intelligence: It uses algorithms and predictive capabilities to present, in a dynamic and personalized way, the most relevant content and experience for each user. Artificial Intelligence is the best option to recommend products, categories, content and offers, prioritize the visualization of results and most importantly, provide 1 to 1 browsing experiences.
From our point of view as a company, we suggest a comprehensive approach to both, combining context and behavioral data, conducted 100% by Machine Learning and nuanced with rules defined by the marketing teams. This process results in new insights, services or products for customization.
Suggested Action Plan: Human Center / Data Driven
There is no strict manual on how personalization should be implemented in companies, however we have established 5 natural steps that can give greater clarity in the process.
1. Define the objectives and map the business strategy: What is the purpose of the company and where is it going.
2. Have available data sources: Here you will find information on people’s behavior in important events in their lives (indicated time). The data may account for demographic information, interests, interaction with content content and purchasing behavior.
3. Creation of the customer journey from the data: The assumptions that you have about customer behavior when interacting in e-commerce or in the physical store, can be reconsidered by what the data actually translates, confronting a different reality and generating new visuals of the journey.
4. Establish opportunities and types of interaction: At this point it is crucial to find opportunities for improvement and evaluate what type of personalization strategies is the most convenient, according to the initial business objectives.
5. Implement and evaluate: Here we answer the big question, is rule-based personalization better, in artificial intelligence, or why not, combined?
When you have all the data gathered in one place (CDP), the crossing of information from different sources begins (physical sales with sales from e-commerce or mixing internet searches with phone calls). This is how valuable information about users is really built.
Expectation Vs Reality
As a brand, you have to understand that digital personalization is an iterative process. As the models are trained and implemented, the true results will be obtained: in-depth knowledge of the client, products with real value and more accurate projections.
The differential is in focusing products and services on people, really understanding their interests and interactions with different channels. The only thing it takes is for the company to stand out from the rest and make the decision to go to the next level of customization, the user will pay it.