The Business Times
This article originally appeared on The Business Times Singapore (subscription required).
With the proliferation of smartphones and the growing amount of personal data available, a "segment of one" marketing and sales approach is now rapidly becoming reality. Most consumers have proven willing to surrender a degree of privacy and share their personal data if they receive services, content or other features that they value in exchange.
The upshot of such personalisation for company performance: In our experience, a segment-of-one approach, implemented thoughtfully at the right moments, can lift sales and allow companies to charge a premium price for the personalised experience. A recent survey of US consumers and retailers by Infosys found that among retailers using personalised offers and promotions, 74 percent experienced an increase in sales; 61 percent, an increase in profit; and 55 percent, an increase in customer loyalty.
However, it's all too easy to build a personalisation programme that falls short of expectations. You can spend a lot of money on data, app development and analytical capabilities, without seeing a high return on investment. Many companies learn these lessons the hard way.
The writers are partners with Bain & Company's Customer Strategy & Marketing practice.