The Industry's Premier Event Dedicated To Consumer Personalisation

Today’s digital age promises customers that their unique needs and preferences will be catered to - and customers are beginning to expect this customisation as standard. When it comes to marketing, generic messaging is quickly becoming a relic of the past:

Magen Hanrahan, VP of Media and Marketing Services at Kraft Heinz Company says: “There’s no one-size-fits-all audience.”

Businesses therefore should not expect to meet audiences with one-size-fits-all marketing. To thrive in today's competitive landscape, businesses must leverage personalisation engines to craft compelling customer journeys from start to finish.

This article explores the transformative power of personalisation engines, their impact on digital transformation and how they drive business success.

The Role of Personalisation Engines

“The way our customers operate their businesses and live their lives in today’s interactive digital world requires a shift to a hyper-personalised experience. Customers expect us to know them as individuals." - Laurie Tucker, SVP of Corporate Marketing at FedEx

Personalisation engines are sophisticated software solutions that leverage data analytics, machine learning (ML) and artificial intelligence (AI) to understand individual customer behaviour and preferences. These engines analyse vast amounts of data, including purchase history, browsing behaviour, demographics and engagement patterns. By uncovering hidden insights from this data, personalisation engines enable brands to:

• Segment Customers: Create targeted customer segments based on shared characteristics and preferences. This allows for more focused marketing campaigns and product offerings, such as a travel company aiming different types of holiday to different customers (young singles, families, retirees).

• Predict Customer Needs: Forecast what a customer is likely to buy or engage with next, empowering proactive recommendations and targeted promotions. A travel company might switch from offering family holidays to suggesting no-kids resorts at the time when children are grown up and have left home.

• Deliver Dynamic Content: Tailor website content, product recommendations and marketing messages in real-time based on individual customer data. For example, a customer looking at holidays within a wine region might be offered vineyard tours.

• Personalise Communication: Adapt communication style and tone according to a customer's demographics and preferences, fostering stronger connections. For example, a price-conscious customer might receive messages emphasising the low cost of a holiday, while another might be offered unique, luxury experiences.

Personalisation engines come in many shapes and sizes according to a company’s needs and goals. Different engines specialise in areas such as website personalisation, email marketing personalisation, or recommendation engines for e-commerce platforms. Choosing the right engine depends on the specific strategy of each business, particularly how they manage the customer journey.

Transforming Customer Journeys

The customer journey encompasses all the touchpoints that a customer has with a brand, from initial awareness to post-purchase interactions. The traditional customer journey might take a standardised approach to the customer journey. Personalisation engines, however, are able to play a crucial role in transforming these journeys into seamless, engaging experiences from start to finish.

Here's how personalisation engines can revolutionise customer journeys:

• Frictionless Navigation: A customer visiting an e-commerce website is greeted with product recommendations based on their past browsing behaviour. This eliminates the need for them to dig through endless categories and personalises the shopping experience from the start.

• Targeted Content: Personalisation engines can tailor website content to a customer's interests and needs. For example, a news website can display articles relevant to a user's location and browsing history, ensuring they see content that resonates with them.

• Proactive Engagement: AI-powered chatbots can be integrated with personalisation engines to provide real-time customer support that anticipates a customer's needs before they even ask. This proactive approach fosters a positive customer experience and builds brand loyalty.

• Hyper-Personalised Recommendations: A streaming service that recommends movies and shows tailored to a user's mood may suggest a feel-good comedy after a long day or a suspenseful thriller for a weekend evening. This level of hyper-personalisation keeps users engaged and satisfied with the service.

Case Study: USAA

USAA, a leading financial services company, leverages personalisation engines to go beyond traditional banking experiences.

While financial institutions usually offer generic financial products and services, USAA wanted to provide personalised financial guidance that empowers their members to achieve their financial goals.

USAA implemented a sophisticated personalisation engine to analyse customer data, including banking activity (spending habits, income sources, and bill payments), investment portfolio (existing investments provides insights into a customer’s risk tolerance and goals) and military service (allowing for tailored financial offerings suitable for customers at different life stages).

Based on the data analysis, USAA recommends relevant financial products and ensures members are investing in products that are most likely to help them achieve their desired outcomes.

The personalisation engine can identify potential financial challenges and proactively suggest solutions. USAA has found that by demonstrating an understanding of their unique financial needs, USAA builds trust and loyalty with their customer base.

Driving Business Value

Personalisation engines are powerful tools that can significantly impact a business's bottom line. Here's how:

• Increased Sales and Conversions: As USAA found, tailored product recommendations and personalised marketing messages resonate more with customers, leading to higher conversion rates and increased sales.

• Reduced Customer Churn: Proactive engagement and anticipating customer needs foster loyalty and satisfaction, reducing churn and improving customer retention.

• Enhanced Brand Image: Personalisation fosters a positive brand image, building trust with customers.

• Improved Marketing ROI: Targeted marketing campaigns based on customer data are more effective and generate a higher return on investment (ROI).

Real-World Applications:

Nike: The sportswear giant leverages personalisation to create a seamless online shopping experience. AI analyses past purchases and browsing behaviour to recommend customised product bundles and suggest performance gear based on a customer's athletic activities. The result: customers wearing Nike-branded clothing from top to toe.

Domino's: The pizza chain utilises personalisation to create targeted promotions and offers. By analysing purchase history and preferences, Domino's delivers personalised coupons via email and app notifications, encouraging repeat business. Customers don’t just buy pizza - they get a Domino’s.

The Impact of Personalisation on Digital Transformation

“It is through digital transformation, coupled with our WestJetters’ caring touch, that we will be able to provide the ultimate guest-centric service.” Gregg Saretsky, President and CEO, WestJet

Personalisation is one of the “big wins” for businesses post-transformation. Businesses that have undertaken a process of digital transformation are finding that their new-found flexibility and tools have opened the door to making use of personalisation engines. Digital transformation encompasses the integration of digital technologies into all aspects of a business to improve operational efficiencies, enhance customer experiences and drive growth.

Personalisation engines play a crucial role in this process by:

• Empowering Data-Driven Decision Making: Analysing customer data empowers businesses to make data-driven decisions regarding product development, marketing strategies and overall customer experience optimisation.

• Facilitating Customer Centricity: Personalisation fosters a customer-centric approach, where businesses prioritise meeting individual customer needs. This shift in focus strengthens customer relationships and builds long-term brand loyalty.

• Unlocking New Revenue Streams: By understanding customer preferences and buying patterns, businesses can tailor their offerings and develop new products and services that cater to specific market segments. This opens doors for new revenue streams and market expansion.

Personalisation and the Future of Customer Experience

The future of customer experience is all about personalisation. As technology advances and data becomes even more readily available, personalisation engines will become even more sophisticated, offering hyper-personalised experiences that cater to individual customer nuances. This will require businesses to invest in robust data security measures and build trust with their customers regarding data privacy: trust will become a valuable commodity, hard to win and easy to lose. Personalisation enables this trust to be built at scale. By leveraging personalisation engines effectively, businesses can create loyal customers, achieve sustainable growth and secure a competitive edge in the digital landscape.

In conclusion, personalisation engines are revolutionising the way businesses interact with customers. By transforming customer journeys and delivering value-driven experiences, personalisation engines are a key driver of business success in the digital age. As technology continues to evolve, the possibilities for personalisation point directly to a future in which customer experiences are seamless, engaging and truly bespoke.

Want to learn more about transforming customer journeys and driving business success? Join us at the Personalisation Summit - where consumer brand leaders explore best practices and innovations in leveraging customer data for personalised consumer journeys that build loyalty and drive business growth. Sound of interest? Download the event agenda here

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