Personalization

When and how should I personalize my customer experience?

By Andy Kaiser

Personalization, it’s not only about segmentation

Segmentation is one of the core tasks of every marketer. It involves classifying customers or prospects into homogeneous clusters in order to better understand how they behave and to identify their mutually-common attributes.

Given the constant need of customers to be recognized as being unique, it has now become more complex to understand or segment them.

To archive the optimal customer experience, companies need to embrace a personalization maturity journey with different stages which combine data, segmentation optimization and insight generation.

1. Initial stage: One to all

In this stage a single message is distributed to everybody and there is no leverage over the user engagement. This stage should be used for basic data collection like traffic sources or event collection.

2. Segment stage: One to many

Elements are introduced to allow more personalized communication, for example business verticals. Segments are defined by rules like visitor events, location, channels and campaigns.

3. Persona stage: One to some

Audience members are personalized based on defined segments and buyer personas based on defined behavior patterns and customer similarities.

4. Microsegment stage: One to few

Micro segmentation is a more advanced form of segmentation that groups small numbers of customers into extremely precise segments based on defined factors, including behavioral predictions.

5. Hyper-personalization stage: One to one

Audience members experience individual journeys defined by their intent, prior interactions and data-driven customer knowledge. In this stage unique customer experience is driven by leveraging big data, AI-driven algorithms and predictive models for direct targeting and hyper-contextualization.

From segmentation to hyper personalization

Considering how important it is to deliver a customized experience to stay ahead of the competitors, personalization not only represents the future.

Personalization of the complete customer experience is a journey based on exploration, data collection, validation and insights to finally improve the customer experience of every audience member.

  • Maturity Model
  • Segmentation

Andy Kaiser

Founder of Ninetailed / Background in psychology, product management and digital marketing. Digital native since the 90s! Don't F**k With Cats or Techno.

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