By Erwin Busselot, Director Business Innovation & Solutions, Ricoh Graphic Communications, Ricoh Europe
Consumers today are increasingly engaging with brands that deliver tailored services, offers and communications. They want to have their preferences identified and experiences customised.
Think Netflix that employs multiple data points to recommend the best films for each individual viewer or Amazon’s use of purchase history data to make product recommendations and send targeted emails with exclusive offers based on individual interests.
Think Spotify’s extensive user account customisation designed to keep listeners engaged with the platform and consuming content, or clothing retailer Very’s ability to make relevant recommendations based on local weather patterns.
All respond to the consumer’s desire to feel special, valued and understood.
It is British consumers that have most increased their likeliness (86%) to want suggested products and services based on their preferences in return for their loyalty a report by EConsultancy and Cheetah found. French consumers were next with an 82% increase. For Spanish consumers, the lift was a more modest but still significant 39%.
This next level ability to communicate is delivered by hyper personalisation. Rather than focusing on segments or groups, it concentrates on the individual. We also know it as one to one marketing of course.
It uses Big Data, Artificial Intelligence, and data analytics including customer scoring, in real time to deliver products, content, and experiences tailored to each customer’s unique needs, preferences, and context. Going beyond simple facts like a customer’s name, geographic location, demographic data, and search and purchase history, it accesses more advanced and complex information. This can include a customer’s purchasing behaviour, browsing activity, response rates to notifications and times when they are active. Artificial Intelligence analyses the data and creates insights that help businesses deliver highly customised campaigns. It increases the likelihood that communications contain optimal content.
As well as customer satisfaction there are at least five reasons brands should maker hyper personalisation part of their marketing strategy:
Increased Revenue 91% of consumers are more likely to shop with brands that recognise, remember, and provide them with relevant offers and recommendations an Accenture Interactive report found. Offering a hyper personalised experience demonstrates that customers matter. As a result, they are more likely to make purchases and become repeat customers. For example, in the insurance industry the first sale is often made at a loss to act as a “door opener” that leads to selling more insurance. This makes for a complex customer relationship that’s by definition “sticky”. This principle applies also to Business to Business marketing, especially with follow up sales.
Better Customer Experience An accurate understanding of a customereliminates irrelevant interactions – ensuring time and effort efficiency for communications. It increases engagement and helps deliver information that is interesting, valuable, and memorable. Research by Boston Consulting Group, discovered that customers who experienced a high level of personalisation provided customer loyalty scores 20% higher than those who experienced a low level of personalisation.
Reduced Customer Churn Winning customers is a lot more expensive than retaining them. Hyper personalisation is a proven way to maintain brand interest. It is even expected – a McKinsey report found 71% of consumers want companies to deliver personalised interactions. And 76% get frustrated when this doesn’t happen.
Boosts Marketing ROI Marketing is a huge business cost if not implemented effectively. Return on investment is shaped by three metrics: conversion rate, average order value, and customer acquisition costs. Hyper personalisation delivering accurate and relevant targeting of products and messaging increases the first two and lowers the last one. In fact, Econsultancy reported 80% of companies experienced an uplift following the implementation of personalisation.
Dynamic Targeting Hyper personalisation is dynamic. Data is updated – unlike traditional personalisation where, once the information is collected, it is not checked. It reflects changing customer needs, preferences, and behaviours such as life milestones and new interests.
Brands can enjoy all of these with creative digital print that delivers highly customised content and offers that drive action. Using Ricoh’s variable data oriented software: FusionPro®, in tandem with the RICOH Pro™ C9500 or RICOH Pro™ C7500 colour sheetfed presses or the new RICOH Pro™ Z75 B2 sheetfed inkjet press which can together intelligently and vibrantly combine powerful messages with accurate data to shape individualised content. Physical and online channels can then be seamlessly connected with QR codes. Ricoh’s Precision Marketing Service also has a long history of supporting ways to enhance customer communications.
Together highly impactful, meaningful, and measurable communications can be created that ensure your clients’ customers feel understood and valued. Communications that keep them connected and encourage long term loyalty.
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