Since the advent of social media and the digital world in the early 2000s, online personalisation of content or search has been a competitive advantage. However, as the industry has progressed and matured, personalisation in user experience has become a strategic imperative today. According to a Gartner report, organisations that invest in their personalisation tools to provide an individualised experience will outsell those who haven’t, by more than 30 per cent!
Personalisation tools have been largely developed by deep artificial learning stacks and advanced machine learning algorithms. Personalisation is paving the way to “individualisation” as it can assist marketers in creating unique experiences for the customers. It helps build brand loyalty and hold the attention of the customer, longer. The customer is also demanding personalisation. A Deloitte research studied customer expectations and concluded that 36 per cent of the customers are interested in personalised products and services, and close to 50 per cent are willing to wait if required. That’s the power of personalisation.
Personalisation has also created a more natural user journey. Brands looking to engage with customers in e-commerce can predict their needs. They can prioritise these products and services in strategic spots for maximum engagement. Personalisation is making e-commerce predictable and scientific rather than by trial-and-error practice.
The other significant impact of personalisation has been in digital advertising. Personalisation tools have been an important disruptor for digital marketers. Today, digital marketers use advanced tools to understand the behaviour and preferences of their customers and target them effectively. Hence, brands can deliver individualised, timely and effective marketing campaigns and earn a better return on investment. Personalisation tools have made customer behaviours predictable.
When India welcomed desktops and the Internet back in the 1990s, it was the age of digital transformation. Now, personalisation tools are bringing in the age of content transformation. There is an overflow of content on the Internet right now, which has reduced the audience’s attention span as well. To cut through the clutter, brands need to innovate in their content. Artificial intelligence tools can help brands understand their audience and help devise content strategies that unleash the full of potential of the brand.
Big data is a vital component for the development of personalisation tools. Here’s how big data is equipping marketers through personalisation:
Volume: The volume of customer data for analysis, which is used to develop a personalised experience is huge. IBM estimates that 2.5 quintillion bytes of data is created every day. As much as 90 per cent of the data was created in the last two years. As more data is collected, more insights are available to developers.
Variety: Earlier, brands probably knew only a structured set of data of their customers (for e.g., name, location, gender, etc.). Today, the data points are unstructured and can be collected from many sources like social media posts, purchasing patterns, photos and videos, etc. It helps create a persona for each customer, individually, in a way that enables a balance between technological and human aspects.
Veracity: As artificial intelligence algorithms become sophisticated and deep machine learning stacks develop, the data is also becoming more reliable. It helps brands derive accurate insights and marketers plan their strategy.
Velocity: The frequency with which brands can generate data and analyse it is critical for the success of personalisation.
Personalisation can be a game changer when the four elements together, help create value: value to the customer by showing them only relevant information, value to the marketer with the best return on investment and value to the brand through increased brand loyalty.
In the competitive landscape today, the biggest gift of technology has been personalisation tools, and the focus of techpreneurs today must be on how to develop it.