Personalisation has moved on from simply adding the individual’s name to an email, or sending a birthday message on the right day. Basic personalisation tactics such as these see very small returns – only 8% of consumers are more likely to engage with a brand because they use their name, and just 7% are likely to engage with birthday-themed messages.
By contrast, 50% of consumers are more likely to engage with a brand when they receive an offer designed for them, showing that tailoring your offers and promotions would be a far better way of ‘personalising’ communications with your audience.
Intelligent personalisation – something that is a huge part of Amazon’s strategy – can increase conversion rates, average order value and customer lifetime value as well as improving marketing ROI.
Investing time and resources into intelligent personalisation is a way to improve your customer experience, and the amount of real value that your brand offers.
There are seven principles of intelligent personalisation, and we explore each of them here:
To be ‘intelligent’ your personalisation must be cross-device and cross-channel, as well as being able to encompass both physical and digital transactions. Make sure that your messaging is consistent across channels so that there aren’t any disconnects as people move between them, and join together your data so that you can be sure not to market a product to someone who researched it online who then went on to purchase it in-store.
Context is Key
When intelligently personalising your messages, context is key. Context can be split into two groups – customer context and the context of your product or service. Customer contextuals to take into consideration include: demographics, location, time of day, day of the week and the season – all of which may affect the likelihood of purchasing a particular item.
The context of your product would include whether it is a product or service that is bought out of necessity or desire, the price of the item (high price, luxury goods vs. low price essentials), how frequently – on average – the item is refreshed or re-bought, and the likelihood of a repeat purchase (a special gift vs. toilet roll for example).
Understanding your consumers based on their behavioural persona is often more valuable than targeting them based on demographics, such as age, gender or marital status. Behavioural personas are more meaningful as they show how, when and why people are likely to make a purchase, which makes it easier to target them with the right offer or message.
Customer journey stage, customer lifetime value, frequency of purchase, satisfaction, marketing engagement and price sensitivity are all good factors to look at when building behavioural personas.
Personalising in real-time is an essential element of intelligent personalisation – having technology that can understand, react to and optimise the customer journey as it is happening is vital.
Working in real-time, personalisation can show the right products, offer suggestions for additional items, making the journey more quick and efficient.
Dynamic content uses purchase history, preferences, demographics, browsing and buying behaviour, and customer lifecycle to work out the best messages to send each consumer. Different information is dynamically inserted in order to show the individual consumer the information, offer or products that are most suited to them.
Dynamic personalisation can even include the weather, pushing consumers towards summer items when it is hot, and to winter items when it is cooler.
Personal Sales Pitches
As well as choosing which product or service to sell to an individual consumer, intelligent personalisation can use information about them to sell it to them in the way they prefer. Netflix, for example, has begun to change the artwork that promotes each program/film so that it is more relevant to the individual’s preferences.
Subtlety is key when it comes to intelligent personalisation. Your efforts should go totally unnoticed, as the consumers go about their interactions with you. The goal should be to add value to your service, and to make your consumer’s lives easier, which are incidentally the two factors that are most likely to increase your revenue.