Never in our history have we lived in a more personalized world. From algorithms on Instagram and Facebook to Spotify, extreme levels of personalization consume our communication and entertainment tools. Even Netflix’s use of personalized recommendations has helped the platform become what it is today, though the streaming service has still witnessed growth troubles in countries like India. Regardless, consumers today have become well acquainted with the advantages of personalization over the years to the point that they now expect these levels from every industry.
Yet, investing in personalization is still slow. According to a 2019 survey by McKinsey, only 15% of CMOs reported that they believed their organizations were on the right track with personalization. While this figure is likely to have changed in the last three years, personalization in business still has room to grow in terms of scale. Of course, this could change rapidly if more companies take the time to learn about the benefits of personalization and the technology behind this promising trend.
The Benefits Of Personalization
No one wants to be just another face in the crowd, and this reality extends to the relationship between consumers and companies. Today, customers want to be treated as individuals, and the only way to do this is to get to know their interests. This current state aligns with reports that suggest over 70% of consumers feel frustrated when their shopping experience is impersonal.
When an individual feels like a brand cares about their needs and interests, and has taken the time to conduct the research to find these things out, there is an increased sense of trust and authority. In turn, when a consumer trusts a business, they become repeat customers, which builds customer loyalty. Customer loyalty can help give a business a crucial competitive edge. Apart from increased trust, the benefits of personalized products and websites include significantly lower bounce rates, faster relationships, more ROI, and better video and email conversions.
What Is The Technology Behind Personalization?
Big data is viewed as one of the main enablers of personalization. There are dozens of software tools that collect and analyze customer data to create personalized experiences. Similarly, we’re also seeing the growing role that GPS systems, biometrics sensors, location recognition, and artificial intelligence are playing in creating these experiences.
Machine learning is also an enabler of personalization. It has enabled AI algorithms to become more sophisticated and interpret different data types, including auditory and visual. For example, software company Affectiva has reportedly used machine learning to create an emotion-recognition algorithm that can map facial expressions.
Real-Life Examples Of Personalization
Speaking of examples of personalization, Affectiva isn’t the only company getting into the game. Two sectors highly involved in personalization include the online casino and retail industry. For instance, many casino review sites give players personalized suggestions for games to play, casinos to try, and available bonuses based on everything from the type of promotion to location. They also personalize them based on wagering requirements.
For example, the best no deposit casino bonuses in the United States are those with low or no wagering requirements and those that don’t use vague language. Likewise, there are two types of casino players: table players and machine players. Each player has different needs, which is why online casinos offer specific deals and promotions for each. For instance, no deposit free spins are only for slot games, giving these players personalized offerings best suited to the game they are playing.
The retail industry is also involved in personalization. One of the most notable examples is Covergirl’s new flagship store, which has incorporated augmented-reality-powered “glam stations”. These stations allow shoppers to virtually try on products by altering their image to look like the product has been applied. Sephora has done something similar, and in other retail sectors, companies like Starbucks are using GPS technology in their mobile apps to send out offers when consumers are near a location.
Personalization has been a driver in the success of the marketing industry for decades. However, it wasn’t until social media platforms started to use algorithms to personalize feeds and suggestions that the world started to pay attention. Now, more industries are trying to capitalize on personalized products, websites, and content to stay ahead of the curve. Regardless, there is still some time before personalization becomes the norm. The only way to achieve this is by more businesses understanding the benefits and the technology behind the trend.
Disclaimer:
- As per the Public Gambling Act of 1867, all Indian states, except Goa, Daman and Sikkim, prohibit gambling
- Land-based casinos are legalized, with certain guidelines, in Goa and Daman, as per the Goa, Daman and Diu Public Gambling Act 1976
- Land-based casinos, Online gambling and E-gaming (games of chance) are legalized in Sikkim under the Sikkim Online Gaming (Regulation) Rules 2009
- Only some Indian states have legalized online/regular lotteries as per and subject to the conditions laid down by state laws. Kindly refer to the same here
- Horse racing and betting on horse racing, including online betting, is permitted only in a licensed premise in select states. Kindly refer to the 1996 Judgement by the Supreme Court Of India here and for more information
- This article does not endorse or express the views of Qrius and/or any of its staff.
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