Hyper-personalisation has become a priority for major customer-facing enterprises around the world, and organisations in South Africa are set to follow suit, harnessing ever more advanced digital solutions like artificial intelligence (AI) and generative AI to achieve it.
Twilio’s 2023 State of Personalisation Report found that nearly 69% of business leaders are increasing their investment in personalisation, and 56% of consumers say they will become repeat buyers after a personalised experience.
Despite their enthusiasm, 39% of businesses said they struggled with implementing personalisation technology effectively.
This finding is not surprising: technology alone can’t solve all the challenges that stand in the way of improving customer experience and becoming more competitive.
Organisations need to get the basics right first − these include a customer-centric company culture and efficient workflows. Once basic best practice has been entrenched, digital technology then enables best practice at scale.
Customers value their privacy, and excessive use of personal data can erode trust.
Plugging technology into flawed processes and poor-quality data could simply create more cost and complexity, and worsen the customer experience. For example, if new technology allows customers to reach you on 10 channels, you may need more people and technology to integrate this data and manage this environment.
Without the right resources and processes in place in the backend, customer service could deteriorate while the organisation deals with a communication mess.
Potential pitfalls
Diving headfirst into hyper-personalisation without adequate preparation can lead to significant pitfalls. One major risk is overwhelming customers with too much personalisation, which can come across as intrusive and uncomfortable.
Customers value their privacy, and excessive use of personal data can erode trust. Many people have experienced seeing ads that closely match recent in-person conversations or activities, leading to concerns about how their data is being used.
Another pitfall is the misalignment between personalisation strategies and actual customer needs. Companies may invest heavily in sophisticated algorithms and platforms but fail to deliver value if they don't understand what their customers truly want.
This misalignment can lead to wasted resources, missed opportunities, and worse − lost customers. For instance, some customers avoid shops that require them to verbally provide personal information like phone numbers or ID numbers due to privacy and security concerns in this era of increased phishing and identity theft.
Boosting CX success
Customer service success comes from a combination of the right culture, processes and digital strategy, with solutions implemented only if they enable the company to address problems or drive customer-first strategy.
For example, in a chain of multiple car dealerships, employee and customer experiences depend on a consistent incentive strategy, standardised processes and uniform service − all of which could, in theory, be achieved with pen and paper.
In fact, role-playing existing customer interactions with representatives from various organisational units using physical props can assist in highlighting issues and areas for improvement.
Once processes have been properly modelled and clearly defined, technology can enhance operations by integrating data and systems to enable greater efficiency, analytics, improved communication and more personalised service.
Building on top of standardised approaches, having one master data repository, a single operations platform and a single language throughout the business are beneficial, helping to break down silos and get the right information to the right recipient at the right time.
When procedures are well-defined and designed for efficiency, even digital project implementation is fast-tracked: consultants and new employees don't have to wait days for laptops or access codes to begin work.
Delays caused by poor operational planning and processes cost money and undermine efforts to improve customer experience. With efficient processes and a well-defined strategy in place, the end goal of every digital project is tangible, and the implementation delivers real value.
Redefining processes and harnessing the data available with a customer-first mindset allows organisations to make simple changes that dramatically enhance the customer experience − for example, pre-populating forms with information they already have, to save existing customers the trouble of doing so themselves.
Monitoring effectiveness
Monitoring and analytics are essential to ensure personalisation efforts are effective for both customers and the company. By defining key performance indicators upfront, organisations can measure success and adjust strategies accordingly.
Metrics such as customer engagement rates, conversion rates and customer lifetime value provide insights into how customers are responding to personalisation initiatives.
To further enhance customer experience, companies should also invest in employee training focused on personalisation strategies and customer interaction. Empowered employees are better equipped to use technology effectively, ensuring personalisation efforts are meaningful and respectful.
Only once the basics are properly in place can organisations start harnessing AI and generative AI to deliver greater returns and hyper-personalise experiences. These technologies can help marketing, sales and operations make faster, more informed decisions that have a direct impact on customer satisfaction.
Share