The Near Future of Personalization

Nowadays, consumers are overwhelmed with the available choice and the stream of messages being directed at them. In order to stand out and be useful, brands need to acknowledge and adapt to the needs of their consumers. 

Personalization means adapting their products and services around the preferences and behaviours of the consumer to suit their real-life needs. Successful brands are designing customer relationships— before, during and after the purchasing process.

This report depicts changing consumption patterns that are no longer defined by traditional boundaries, drivers behind the need for personalised offers that reflect consumer behaviour, as well as ways of maintaining the ongoing and long-term relationship with consumers that are based on personalization. 

What is personalization? It is creating experiences tailored to that particular individual that exists at a service, data or content delivery level.

Why is it important for brands? It is important because it creates a stronger user experience by anticipating their needs upfront, making everything “just right” for customers without them having to set it up. 

So, how can brands successfully implement personalization in their strategy? 

1. Pin Point Targeting

Demographics based on age, gender, location, income and lifestyle are no longer viewed as reflecting real needs of consumers. Personalization based on behavioural data, that can be location or time-specific allows for a very specific targeting that is relevant to the particular consumer and answers their need. 

2. Personalized Solutions

With overwhelming choice available anywhere and at any time, it is becoming difficult and time-consuming for customers to move efficiently throughout the purchase journey.  Effective personalization will elevate customer loyalty and engagement—and use their customer base as an engine of advocacy to potential buyers. With all these benefits coming together, it is crucial to realise that personalization is what helps companies differentiate their products from those of their competitors. 

3. Personalization Tool Kits

Beyond the pure size of the opportunity, the survey showed that those customers who had personalised a product online engaged more with the company. They visited its website more frequently, stayed on the page longer and were more loyal to the brand. As more retailers and brands give their customers the design-it-yourself option, they should see a boost in profitable revenues, stay connected to their best customers. 

Below you can explore our full report with accompanying trends, insights and signs, followed by actionable implications which are included in a hands-on framework.

Contact:

If you would like to learn more about how these insights can help your organization to respond to current challenges and how take advantage of emerging opportunities, please get in touch with us. 

Joanna Bakas, Managing Partner

jb@lhbs.com / +49 151 6462 0741