In today’s world of steep consumerism and consumer centricity, personalization is no longer a luxury. Gone are the days of mass marketing and “one size fits all” approach. Bespoke offers and products tailored to one’s preferences and choices have become the Holy Grail.
Not only do consumers value the personalization but they also swear their loyalties to the brands who offer it to them. Everyone wants to feels valued and special and the company which goes an extra mile to understand the customer and their unique needs better is a clear winner. This growing phenomenon of brands targeting the customers at an individual level, creating individualized offers and services specific to their needs is known as Segment-of-One.
Let me give you an example in the marketing domain -I am big on online shopping, have signed up on most of the ecommerce sites and more often than not manage to bag awesome deals (excuse my humble brag!) The flip side is that I get a slew of mailers from these sites with offers that don’t interest me at all. For instance, if a ecommerce portal sends me offers about washing machine (don’t need one), kids clothing (don’t have one) or gym gear (don’t intend to get one) or things that don’t appeal to me at this given point, it just takes me away from the brand and closer to the unsubscribe button.
On the contrary if I get a mail just before a music festival with offers on Boho styled clothes or better still they put together a look for me with clothes, accessories and befitting shoes; I would be blown away and dart straight to the site for some prefestival shopping. Why? Because I love attending music festivals and my style is Boho, and the marketing team of this site has put in a wee bit of effort to find about my tastes and choices and dish out offers with impeccable timing and context (in this case the music festival)
Needless to say it has become imperative for businesses to adapt themselves to this new trend in order to be relevant. While a handful companies have mastered the art of Segment-to-One, majority of them are still grappling or have not jumped on the bandwagon yet.
How difficult is it to micro segment your customers and market at an individual level? Can companies achieve this level of granularity and still be competitive? Let’s see what we’ve got.
Data, Data Everywhere
With numerous customer touchpoints and adoption of digital channels by the customers, there is no dearth of data. During the customer lifecycle, there is so much data that the organization collects, but it is tucked away in disparate systems. The real task lies in consolidating this humongous sets of data and putting a structure to it. The data consolidated from all sources needs to be sanitized in order to maintain a single version of the truth. Using data such as social media footprint, purchase history, website visits etc, a comprehensive profiling of customers can be done with respect to the demographics, preferences and interests.
A robust customer database with attributes and I am set.
Having an extensive database is just the battle half won. We need the analytics to do the magic on the existing data and to brew up some interesting actionable insights. Using analytics techniques such as predictive analysis and trend discovery, purchasing patterns can be gleaned out and data can be segmented based on common attributes. This topped up with forecasting can help predict the future purchases of the customer and help the companies deliver appropriate offers that the customer is much likely to act upon.
Completing the loop
With all the historic data coupled with real time customer data and analytics taken care of, it is very important to make this information base easily accessible to the service delivery team and marketing team to help them tailor a service package for individual customers.
They say that retaining a customer is much more economical than acquiring a new one and the “Segment of One” strategy will not only help you retain customers but also convert them into brand ambassadors. The task looks daunting, but with right infrastructure in place, it will be a breeze.
One powerful system which can consolidate data from all channels, maintain customer database, run analytics in the backend and has simple graphical interface, will do the trick. In fact at eMee too, we have built a platform which can enable businesses to adopt “Segment of One” approach and customize brand experience at an individual level. We have notched it up a little by adding a dash of gamification. If you are curious to know more, drop us a line
Chief Digital Strategist, eMee