Once upon a time, everything was personal. When you went into your local bakery, you would hear something like “Nice to see you again, Mr. Richards. Since it is your son´s birthday in a few days time, would you like me to bake a birthday cake for him?” Today, every customer is one in a million of other customers. So, here is the trick question: how can you personalize marketing to thousands of your customers? The key is data. Digitize every touchpoint with your customer to collect data. Listen to the voice of your customer on social media. Give your customers rewards and incentives for sharing data with you. Look for data that explains the local context of your customer interactions, such as local news, events, economic situation, prices, culture, weather and political opinions. And integrate all that data to learn insights across all data silos.
Every single interaction with your customer matters. Use the data and insights to personalize every touch point that you share with your customer to improve the brand experience. Give your employees the power of analytics at their fingertips so they know what the customer has done online and on the mobile phone when the customer comes into the branch and telling the employee what the customer likes and what better to avoid. And use cognitive technologies that can fully personalize the automated interaction on mobile phones and online.
Then, you have to learn how to predict things that are relevant to personalize the customer experience. First of all, you have to creatively construct features as the raw data is not ready for analytics. For instance, calculate the age of your customer using the date of birth. Determine the product categories bought, the frequency of purchases and total revenue from transactional data. And turn the profession into an average salary for this type of profession, for example. Transactional data combined with customer and contextual data is extremely powerful. Predict the psychological profile of your customers. Predict where your customer are going and what they need at this very moment. And predict the next best marketing action for each individual customer.
|Type of personalization||Example|
|Personalize style for your communication||“I am a fact driven person. So, please, just give me the facts.”|
|Personalize channel for your communication||“We prefer personal interaction when it comes to our mortgage.”|
|Personalize content for your communication||“You should know that I am a vegetarian.”|
|Personalize context for your communication (e.g. time, place)||“I am on my way home and looking for a great place to eat.”|
|Personalize your service||“I like action movies with Sylvester Stallone. No nonsense.”|
|Personalize your Product||“My car can speak to me and knows my favorite restaurants.”|
With the right digital tools, you can personalize nearly everything. The style of your marketing messages. For instance, your customer might be a fact driven person and expects you just to give him the facts. The preferred marketing channel. You might find out in your data that young couples that plan to buy a house might prefer personal interaction when it comes to choosing the right provider for their mortgage. The content of the marketing message. You better avoid selling meat to a vegetarian. And the context of the marketing message. An add for a restaurant works best, when I am hungry on my way home from work and looking for a great place to eat.
Besides your marketing, services and products can be personalized, too. In the old bakery times, a personalized service could be something like you coming into the bakery and the baker you´ve known for a long time says: “I noticed that every Wednesday you buy four pretzels. I have reserved some for you as we were nearly running out of stock.” Today, a personalized service is given to millions using customer data analytics, for example, by media streaming service provider Netflix that knows that you like action movies with Sylvester Stallone and maybe some movies with Bruce Willis, but certainly no romantic nonsense like Titanic or Shakespeare in Love. Personalizing your product in old time in the bakery could be your baker saying: “Last time you told me that you like bread with sesame sprinkles. I made some especially for you!” Today, it might be your BMW that calls you by name and knows your favorite restaurants