Taking things personally: When personalisation hurts your business

Today's customers expect personalised experiences, with more and more organisations starting to see the benefit to both customers and businesses.

At its core, personalisation can make customers feel more valued, which inspires greater brand loyalty.

A 2018 survey revealed that 91% of consumers are more likely to shop with brands that provide personalised offers and recommendations. That appeal is so attractive that almost a third of customers (31%) wish their experience was more personalised than it is currently.

When executed well, such experiences enable businesses not only to differentiate themselves but also to gain a competitive advantage. Highly personalised customer experiences are difficult for competitors to imitate, and providing them at scale can be operationally challenging.

But beware, organisations can take personalisation too far.

We recently worked with a monthly subscription-based business that promoted a highly personalised product offering model. The marketing, enrollment process and communications did a fantastic job setting customers’ expectations. When customers signed up for membership, they completed a product preference survey, and each month they were offered an opportunity to select from a selection of curated products.

91% of customers are more likely to shop with brands that provide personalised offers and recommendations.

Our research confirmed that customers wanted the promised highly personal experience; in fact, it was one of several key experience drivers.

However, through root cause and experience design workshops, we learned that as the business grew, they were operationally unable to meet the high expectation they created in their customers’ minds, and their NPS suffered as a result.

While every organisation will have unique issues to deliver more personalised experiences, some typical challenges to overcome are:

1. Incorrect or not up-to-date data
2. Non-unified customer profiles
3. Poor or no customer segmentation
4. Lack of collaboration across departments
5. Technology challenges (from data management to integrating different channels and systems)
6. Implementation and delivery cost
7. Scalability

All of this means that companies need to invest time and resources into determining the right level of personalisation.

Personalising the experience is expected by customers. In order to live up to these expectations, leaders must ensure that they work collaboratively across the organisation to design a level of personalisation that is right for their business.

When done right, personalisation is what sets you apart from the competition and keeps your customers coming back for more.