“Personally, I am very fond of strawberries and cream, but I have found that for some strange reason, fish prefer worms. So when I went fishing, I didn't think about what I wanted.” - Dale Carnegie
Mass production, mass marketing, mass investing… This time is fading out as clients demand, and pay, for products and services that fit their personal lifestyles, financial conditions, and preferences.
Industry by industry, companies-newcomers which offer hyper-personalised products and services took the incumbents by surprise. Amazon, Netflix, social media marketing, Uber, Airbnb are just a few examples of services that fit and react to each individual, creating extraordinary, personalised experiences for millions of their clients globally in real-time.
Every time we use our smart device, our preferences, content, apps, and settings are adapted for us. And that’s how every service and experience should be as well.
Here are 5 ways Hyper-Personalisation can be a game-changer for both individuals and companies:
1. Customers do not like average experiences. They like to be treated individually. Everyone likes to feel unique; research and psychology experiments prove that. Marketplaces that do not track individuals’ preferences reacting to them, they sell much less than passive marketplaces. This is the main reason why traditional markets are being disrupted.
2. It gives you the client’s perspective about your products and services, not yours. Tracking customers’ preferences and reactions to your strategy gives you a strategic advantage in the market by moving faster and in the right direction. It reduces huge costs in reporting, marketing research and all other mechanisms to find the perfect “PERSONA”. Why don’t just know each one of them instead of guessing what they want? Fintech’s are disrupting the banking industry right now because traditional banks are not interested in individuals more than they are concerned about their own problems.
3. It increases sales as you go digital. The digital world is all about speed. As the world speeds up, clients’ attention span for your products is decreasing every day. Your ability to keep them interested and to treat them as they want to, reacting according to their individual demands with your adjusting products can improve sales dramatically.
4. It increases margins. Not only selling more is important but selling at lower cost – that’s what makes the profits. By tracking individual experiences and preferences, you can be assertive and reduce sales or operational expenditures into low-efficiency but costly actions.
5. It allows to predict future sales. From the moment the companies can predict each client’s possible behaviour and driver for their loyalty, the future sales and actions would be more predictable. It alone would give listed companies more accurate valuation as opposed to the “blind” ones. Loyalty programs could be close to perfection while CAPEX could be optimised with “surgical” precision.
CEO of London Analytics