Published on October 29, 2023, 9:38 pm
The business landscape has undergone significant changes since the start of the pandemic, especially in terms of delivering an outstanding customer experience. Allen Wong, the Digital Leader at Deloitte Hong Kong, highlights that these changes are driven by various factors such as the proliferation of channels for customer interactions, the importance of understanding customer data to provide targeted experiences, and the rising popularity of loyalty programs to engage customers effectively.
Traditionally, customer satisfaction was measured based on how well a store knew its frequent customers’ preferences and special moments. However, with advancements in technology, companies now have access to vast amounts of information about their customers. This level of knowledge can sometimes make individuals feel like their privacy doesn’t exist anymore. The constant barrage of notifications, text messages, and emails from companies can push customers to disconnect from businesses they once favored.
This phenomenon is commonly referred to as “death by personalization.” The goal of personalization should be to create meaningful experiences for customers. However, it is essential to strike the right balance between tailoring interactions and respecting privacy boundaries.
Hyper-personalization has become a buzzword in recent years. Matt Johnson, the Managing Director of Data and AI at Temus explains that hyper-personalization takes personalization to another level—it strives for an even higher degree of customization. While some may consider hyper-personalization as primarily a marketing strategy or buzzword, Johnson emphasizes that it’s ultimately about customizing products or services according to individual needs and preferences.
The opportunity for digitization and hyper-personalization lies in leveraging digital technologies to create increasingly personalized products, services, or communications at an affordable cost. By collecting detailed information about customers and applying it intelligently, companies can tailor responses and create more personalized experiences.
However, not all hyper-personalization solutions are created equal. Johnson notes that while they all depend on collecting detailed customer information for customization purposes, their architectural capabilities may differ significantly. Different vendors may excel in specific types of interactions, so organizations must choose the right solution that aligns with their objectives and requirements.
When it comes to utilizing data for hyper-personalization, Johnson believes that the capability is there. Companies like Meta and Google have shown success in delivering personalized information based on factors such as location and personal interests. However, more traditional organizations like banks are still on their journey towards achieving hyper-personalization. The maturity level of hyper-personalization varies across industries and services.
Some factors contribute to the discrepancy between digital players and other organizations in adopting hyper-personalization. Innovators in digital spaces have been at the forefront thanks to their lack of legacy systems and traditional business models. Additionally, their focus on pushing technological limits has given them a competitive advantage.
Privacy concerns play a crucial role in implementing any hyper-personalization strategy or program. Johnson asserts that consent and trust should be at the core of privacy considerations. While technologies like cookies enable data collection, companies must respect users’ privacy preferences and obtain proper consent before using their data. Violating user trust can lead to backlash and suspicion from customers.
To ensure compliance with regulations like GDPR (General Data Protection Regulation), organizations must prioritize user benefits and agreement when implementing personalization strategies. Respecting individual privacy is key to maintaining regulatory compliance.
In conclusion, while personalization is essential for delivering exceptional customer experiences, it is important to navigate the delicate balance between customization and privacy concerns effectively. Organizations can leverage digital technologies for hyper-personalization but should carefully consider the nuances of different solutions available. By prioritizing user consent and trust, businesses can maintain compliance with regulations while still providing tailored experiences for their customers