Many brands rely on basic static data for personalisation, such as inserting a first name, but this approach may not be effective in driving sales.

Recent research shows that only a small percentage of consumers are likely to engage with basic personalisation:

• Only eight percent would engage with marketing that addresses them by name;
• Merely seven percent would engage with marketing that mentions their birthday.

In contrast, tactics focusing on relevance rather than demographics are more successful. Our study indicates that half of consumers are more likely to engage with retailers that send them offers that are relevant and interesting.

The case for intelligent personalisation in business

Prior to exploring the seven principles of next-level personalisation, it is important to understand why investing in intelligent personalisation is beneficial for your business.

Intelligent personalisation should be a priority because it can:

• Increase conversion rates: Personalised marketing boosts sales.
• Increase average order value: Cross and upselling encourage higher spending.
• Increase customer lifetime value: Personalisation promotes repeat purchases and loyalty.
• Improve marketing ROI: Personalising cross-channel marketing enhances conversions, leading to better ROI for marketing investments.
• Increase revenue: Personalisation elevates customer experience, resulting in increased revenue.

The 7 principles of intelligent personalisation

If you seek superior results, consider these seven principles as the foundation of your personalisation strategy.

1. Seamless

Your personalisation approach should be seamless and integrated across customer journeys on multiple devices and channels.

Ensure your personalisation is:

• consistent across multiple visits and devices
• cross-device and cross-channel
• integrated with your in-store experience

2. Contextual relevance

Contextual relevance is crucial in replicating an in-store experience online. Consider the context of your products and customers to achieve effective personalisation.

Customer context includes:

• demographics
• location
• activity
• time of day, day of week
• season
• customer journey stage
• satisfaction

Product context involves:

• buying motivation
• price
• purchase frequency
• usage
• repurchase likelihood

3. Behavioural

Smart personalisation targets consumers based on their online actions, creating behavioural personas that focus on actions rather than demographics.

Behavioural factors for these personas may include:

• customer journey stage
• customer lifetime value
• purchase frequency
• satisfaction
• marketing engagement
• price sensitivity

4. Real-time

Intelligent personalisation involves understanding, reacting to, and optimizing customer journeys in real-time. This allows for a dynamic and personalized customer interaction.

Real-time personalisation technology observes current and historic behavior to deliver the most relevant message at the right moment.

5. Dynamic

Next-level personalisation utilizes machine learning to determine dynamic content for each customer. This technology considers various factors such as purchase history, preferences, demographics, and browsing behavior to personalize content and recommendations.

6. Think ‘how’ not just ‘what’

Move beyond simply deciding what to personalise and focus on how to personalize it. Consider Netflix’s personalisation strategy, which goes beyond recommending content to personalizing artwork based on individual viewing history.

7. Invisible

Personalisation should be seamless and invisible to customers to avoid making them uncomfortable. Focus on adding value rather than showcasing personalisation tactics.

By implementing these principles with the right personalisation technology, you can enhance customer experience and drive increased revenue for your business.

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Image Credit: Rhand McCoy on Unsplash

This article was first published on October 12, 2018.

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