|
EQS-News: Mondia
/ Key word(s): Miscellaneous
Personalization in media – how technologies help (By Paolo Rizzardini)
Personalization done well enhances the customer experience, builds retention rates, and reduces acquisition costs by up to 50%
By Paolo Rizzardini, Mondia Digital CEO (https://Mondia.com/)
Consumers today crave relevance. They are inundated with advertising and marketing and can feel isolated and alienated as a result. As the world took a sharp step online during the COVID-19 pandemic, expectations of the consumer experience shifted profoundly. Consumers wanted brands to remember who they were and what they preferred. This trend has shown no signs of abating. The demand for personalized experiences and environments is becoming more and more acute.
Personalization is likely to be one of the predominant drivers of brand’s success over the short to medium term. According to Accenture (https://accntu.re/3UounPH), 91% of consumers are more likely to shop with brands that provide personalized offers and recommendations. In 2022, 62% (http://bit.ly/3VhOh0k) of global consumers said that a brand would lose their loyalty if it failed to deliver an adequate personalized experience, up from 45% just a year earlier. Unsurprisingly, there is a generational component to the desire for increased personalization. Digital-savvy Generation Z are almost twice as likely (http://bit.ly/3VkJniS) as Baby Boomers to want personal recommendations to appear while shopping online.
Personalization is already big business: Statista (http://bit.ly/3ESnIaK) estimates current spending on customer-experience personalization software and services at $8 billion, and for that to increase to nearly $12 billion by 2026. 35% (http://bit.ly/3AZ5WSm) of companies across the globe felt they were achieving omnichannel personalization, up from 24% a year ago.
Personalization can not only attract users to platforms that are built around them, it can also deliver content from a vast library that interests and engages them. Personalization done well enhances the customer experience, builds retention rates, and reduces acquisition costs by up to 50% (https://mck.co/3Fdufya). Leaders in personalization have driven 5-15% (http://bit.ly/3XUReFQ) increases in revenue, and 10-30% (https://bit.ly/3XUReFQ) increases in the efficiency of marketing spend. The lesson is clear: brands that fail to adopt effective personalization are likely to lose customers and cede market share.
Media recommendations Media platforms are increasingly judged on their ability to provide accurate, useful and frictionless content recommendations. Those that get it right prevent customer churn, build longer-lasting relationships with customers, and establish a platform for the co-creation of user experiences.
The field of personalized recommendations is likely to evolve through the empowering of users, allowing them to manage and control the types of content that are suggested to them. This co-creation of experience is the key to bridging relevance, convenience, and autonomy.
The role of technology Advances in technology will increasingly allow brands to create unique, individual and human experiences. The key technologies at play are data science, machine learning (ML) and artificial intelligence (AI), with augmented reality (AR) and virtual reality (VR) showing potential for the next wave of personalization.
The ability to effectively collect, secure, process, analyze and interpret large data sets sits at the core of personalization.
AI allows brands to quickly and accurately generate personalized recommendation algorithms, efficiently and at scale. 32% (http://bit.ly/3Uii2ww) of marketers are already using AI to personalize email messages and offers, and 38% (http://bit.ly/3gMudUJ) derive business benefits from using AI to create personalized consumer experiences at scale.
Bridging the physical/digital divide The potential goes beyond the digital, especially when the digital/physical divide is bridged through the use of AR. Industries as varied as healthcare, retail, hospitality and banking are increasingly making use of user data to provide bespoke environments and experiences. The integration of personalized ecosystems into daily life will be driven by smart home technology, smart cars, a vast array of digital sensors and devices, and improved privacy-enhancing technologies that allow the use of personal information to be managed and targeted.
Hotels, for example, are increasingly keeping individual customer profiles that allow them to set up a unique, custom experience no matter where they are in the world. Grocery stores (http://bit.ly/3AYbnRg) can use AR to provide personalized information such as dietary suitability, unique promotions, and nutritional information. Demand for these services still significantly outstrips supply – while just 1% (https://bit.ly/3FnsZJf) of retailers currently innovate with AR, 71% (http://bit.ly/3FnsZJf) of consumers say they’d shop more often if they could use AR, and 61% (https://bit.ly/3FnsZJf) reported a preference for retailers with AR experiences.
Privacy and data security The issue of privacy and control of personal information and other data should be front and centre when discussing the future of personalization. The key to responsible data management is transparency. 83% (http://bit.ly/3id9kST) of consumers are happy to share their data to enhance a personalized experience so long as the brand is clear about how they intend to use that data.
This varies considerably by geography and type of information though. In a 2021 survey (http://bit.ly/3GY1qXZ), just 30% of German respondents were willing to share browsing information with brands, while 71% of Indian consumers were willing to share information on their social values. Likewise, 80% (http://bit.ly/3gJMlOY) of global consumers believed it was appropriate for brands to collect their purchase histories, but fewer than half believed it was appropriate for brands to collect data on important life events.
Users want more than effective algorithms and recommendations; they want control over their experiences and journeys. Nearly three quarters (https://bit.ly/3id9kST) of respondents in an Accenture survey of 8,000 consumers said that they’d find it valuable to be able to update and manage their personal profile.
Challenges and potential There is huge potential for further growth in the personalization sector. A recent survey of senior marketing leaders by McKinsey found that only 15% (http://bit.ly/3EMnGBj) believed that their company was on the right track in terms of its personalization strategy. The challenge is building compelling, frictionless personalized experiences.
Marketers and content providers also mustn’t get ahead of themselves: while 85% (http://bit.ly/3OPdRah) of companies in 2021 believed they were offering personalized service, only 60% of customers agreed. Similarly, in a 2022 survey (http://bit.ly/3Vz8hew), 75% of marketers believed they were providing excellent personalized experiences, but only 48% of consumers agreed. The lesson is to maintain a strict focus on the end-user experience.
Personalization done right Mondia Digital’s products are delivering seamless access to the digital life consumers desire, and an excellent user experience through a content catalogue adapting to the personal needs of that specific moment, and new business models fitting the rules and possibilities of unique communities.
Distributed by APO Group on behalf of Mondia.
30.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| Language: | English |
| Company: | Mondia |
| Dubai | |
| United Arab Emirates | |
| E-mail: | marie@apo-opa.com |
| EQS News ID: | 1501209 |
| End of News | EQS News Service |
|
|
1501209 30.11.2022 CET/CEST
