Data-led Personalisation To Reimagine The Future Of Business
As the world rapidly changes around us, the focus on experience is undoubtedly at its greatest today and this is leading to a growing demand for personalisation. Accenture research found that 79 per cent of consumers say the more personalisation tactics a brand uses, the more loyal they are. At the same time, there is increasing awareness among consumers around data privacy, as they are more conscious about how, when, and why their data is being collected. With shifts in the data privacy landscape, to remain competitive businesses need to re-assess their customer acquisition and retention strategies. For example, third-party cookies which are still being used by a vast majority of digital ads will not be a viable option for data collection by 2023.
While this may seem like a paradox, it is possibly a tipping point to reinvent the future of business. There is a huge opportunity for companies to re-evaluate how they connect with their customers to build better, more intuitive, mutually beneficial relationships.
The expectation of personalised experiences for customers is not just limited to business-to-consumer (B2C) companies. Today, the business-to-business (B2B) marketplace is equally dynamic, with more decision-makers to be mindful of, as well as the availability of more products and solutions. There is a need to continuously connect with buyers on a personalised, ongoing basis, in their moments of need, with accurate information and an understanding of their present challenges and opportunities. In a nutshell, customers everywhere in every form are demanding personalisation and unique experiences.
Transform Into a Business of Experience
Driven by shifts in consumer preferences and business demands, companies that put experience at the heart of their organisation will witness growth and success in the future. Improvement in experience, helps improve lives and in turn, improves business - this experience-led approach is known as the Business of Experience.
Business leaders are well aware that their organisations must go through a fundamental shift in how they interact with customers. According to Accenture research finds that 77 per cent of CEOs agree with this view. Companies need to look for improved ways to gather customer insights, measure the effectiveness of their marketing strategies, and deliver connected experiences to customers. In fact, not just the marketing or sales function, but the entire organisation needs to reorient around creating meaningful experiences for their customers.
To do this successfully, C-suite leaders need to focus on three key areas:
· Shift to First-Party Data: The most valuable form of data, that is first-party data can be easy to manage and collect with the help of a unified platform system. Business leaders should evaluate the extent of their reliance on third-party data, assess their ‘cookie-less’ readiness, and start making the switch to first-party data in a strategic, non-disruptive manner. Businesses need to offer tangible value or benefits to customers in exchange for data. A survey of 8000 consumers globally found that 73 per cent of them are willing to share personal information if brands are more transparent about how it is used.
· Build a Strong Future-Ready Data Architecture: Data management, storage, and security are going to get increasingly complicated over time. A robust data platform combined with a future-ready digital architecture and vital data governance processes enabling scalable and trusted reporting of business metrics will be essential for evolving regulations landscape and future growth. Additionally, as data volumes grow, investments in automation and artificial intelligence (AI) or machine learning (ML) will also need to increase to maintain accuracy.
· Evolve Measurement Techniques: Legacy marketing key performance indicators (KPIs) need to evolve significantly to convert customer data into actionable insights. Going forward, the focus should be on the holistic impact on customers, on experimentation and driving growth for the businesses. Invest in implementing new measurement techniques across the organization which will be a strategic asset for growth.
Build Data Capabilities, Earn Consumer Trust
The shift to a cookie-less world and an evolving data privacy landscape are indicators of upcoming disruption. These changes accompanied by the potential use of metaverse and Web3 will reimagine the future of personalised customer experiences. While it is still early days for the metaverse, it is poised to transform every aspect of brand building. To prepare for the next phase of digital evolution, brands will need to redesign their online footprint and focus on interoperability. For example, Burberry is unifying its gamification using QR codes on its offline ads and street art, which transports users to a virtual world of games and even a block party. Shell's augmented reality (AR) Remote Assist helps workers in the field get over-the-shoulder assistance from expert colleagues worldwide.
In a constantly evolving digital world, what will set organizations apart is having the right data skills, partnerships, and capabilities in place to deal with complex data, acquire customers, and retain them by providing tailor-made experiences. And ultimately, the biggest driver of success for an organisation going forward will be its ability to earn consumer trust by prioritising the privacy and security of their data.
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