Personalization is a strategic priority for enterprises to thrive in the dynamic market space.
FREMONT, CA: Personalization is something nice to offer the customers. In the space of hyper-personalized experiences driven by technology leaders like Amazon, Starbucks, and Spotify, the personalization level has been set high. Recent data shows that 72 percent of consumers and 89 percent of business buyers expect brands to understand their unique requirements and expectations, and 66 percents of consumers are likely to switch brands. This makes it clear that personalization is the priority. Here are some challenges in the journey to get there.
• Eliminating Silos
Silos are an issue when it comes to personalization. But, to execute on an omnichannel strategy, brands have to embrace the challenges silos bring. It is a lot of work to weave together the channels brands have in their landscape. Brands must prioritize personalization campaigns because they do not have the bandwidth to personalize for all campaigns on the calendar. Siloed data can often result in a limited view and understanding of the customer's intent.
Data regulations have been enacted over the past few years to regulate the collection and use of customer data. More regulation is to come. But that doesn't require to be an obstacle. Other compliance obstacles are restrictions on the use of third-party data, like third-party cookies. While first-party cookies generated on the website a customer is using are becoming a valuable source of tracking data, third-party cookies will continue to be an essential source of data on users' evolving interests and requirements.
• Bad Data Stewardship
Brands are feeling a great impact from recent data privacy legislation. The bigger hurdle is a lack of understanding at the corporate level. Many are not aware of the effect bad data stewardship can have on customer perceptions. Improved understanding and training are required at the C-suite and development team levels. Too often, a discussion with legal is more of a formality part of the development process.
• Integrating Data Across Touch Points
Because one of the personalization objectives is to offer a consistent experience wherever the customer is. It demands the brand to utilize data from all channels, like purchase history, customer service inquiries, mobile app usage, social network brand presence, feedback, and email. Acquiring, analyzing, and making real-time data is a challenge. Partnership and alignment is the first step in testing optimization and personalization.