Are there different types of personalisation?
It will come as no surprise that personalisation no longer comes in just one size! Over the years, brands and software companies have developed very different approaches to personalisation – so depending on your business type and customer base, there’s sure to be an approach to fit your brand!
The team at FT Strategies break down personalisation into 3 main types based on your brand’s maturity:
Active personalisation – when ‘users provide input that results in a personalised experience.’ For example, in return for sharing your location via an app, you’ll receive the local weather forecast.
Passive personalisation – requires no customer input, with the personalised experience being based on behavioural inferences.
Advanced personalisation, or hyper-personalisation – is based on rapid and finely-tuned content being delivered to the customer based solely on their interactions with the app or digital product.
Whether it’s Active, Passive, or Advanced personalisation that your brand is looking to engage in, there are a number of different approaches you can take. Here are the main ones:
Perhaps the most common form of personalisation, which involves tailoring content to an individual’s interests, preferences and behaviours.
With this approach, brands are able to offer customised or configurable products based on a customer’s preferences. For example, specific features, colours or sizes of a digital app display.
This is when brands typically use algorithms to suggest products, services or content based on a customer’s past behaviour. Think Netflix or Amazon!
Very often done in real-time, this approach involves tailoring the customer experience based on in-app behaviour, such as how a customer navigates a website, the pages they visit and the actions they take.
Like the very example above, this approach uses a customer’s physical location to offer personalised experiences.
This form of personalisation takes into account the time of day, week or season, to deliver content and promotions that are relevant to that specific moment. Think Christmas-based offers or summer promotions.
Customer ‘tier’ personalisation, e.g. loyalty program member
As with the Sephora example we outlined before, this type of personalisation is based on the tier that a customer falls into within your brand’s loyalty program. This drives further personalisation of offers, rewards, discounts and incentives.
Marketers know the value of segmentation all too well – and it can also be used to personalise offers or content to a specific group within your customer database.
We couldn’t cover an article on personalisation without mentioning artificial intelligence (AI)! When looking to apply personalisation at scale, AI is the first port of call for many global brands nowadays.
Whether you’re just getting started with personalisation or are looking to take things to the next level for your brand, you’ll also want to consider the different channels that can be leveraged to personalise your offers, content and experiences. The ultimate goal is, of course, that seamless omni-channel experience, but at a channel level, here are the main ones to take into account:
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