If you want to use personalization to differentiate your company towards your competitors, these are the keys: Predictive modelling – Multichannel – Automation – Testing/analysis.
Personalization can be defined on a large scale. A simple example is writing the recipients names in emails. On the the other end of the scale you have predictive modelling as basis for business rules deciding what content and marketing to be to used in the most suitable channel for a particular customer or prospect.
In 2012 Forrester Research released a White Paper on personalization. This is their conclusion on what companies should do:
1. Use predictive modelling to understand customer behaviour.
Predictive modelling is answering the vital question; what is the next most likely action (next best offer) for a prospect/customer with a certain profile/behaviour.
2. Personalize your communication in all available channels.
Dont´limit your personalization efforts to the web. Meet the customer with the right offer in the most appropriate channels. This might be on the phone, via direct mail or in an office as well as in any of your company´s digital channels.
3. Automate in real time.
Set up business rules that are triggered in real time. Based on the last relevant interaction with the customer/prospect, a business rule decides what specific content or marketing to be triggered for the customer.
4. Test and evaluate
In the end it all comes down to the marketing skills and competence within your organization. Test different creative solutions and see what gives the best results. Even though your use of predictive modelling tells you what offer to make, it doesn´t tell you what the optimal creative solution is when making that offer. It is an iterative process; just make sure your are heading in the right direction.
Two things are certain:
1. You can increase retention and profitability by personalizing the communication with your customers and prospects.
2. It is a journey: Develop your personalization efforts step by step and evaluate the results along the way to make sure that results are improving. It is not a question of using all possibilities perfectly, it is a question of being ahead of competition.
You can download the Forrester report here (Swedish, free) or here (English, $499)
Andreas Franson,andreas[@]internetintelligence.se, +46 733 56 41 51
