Open Book Solving the personalisation puzzle SMEs with an international focus are more likely to weather any storms brought about by Brexit. What strategies for export will help to anchor future revenue streams? Words: Martin Green M arketers face a conundrum when it comes to tailoring communications, products and services for consumers. Data is key to personalisation but, as Facebook makes the news over its use of data, consumers are increasingly reticent about handing over their details, while regulations are becoming evermore stringent. David Lloyd, head of data at digital agency Wunderman, explains that the proliferation of online channels has changed the level of personalisation that marketers can achieve. In the past, the focus may have been on how to make emails more personal. Now, the possibilities are much greater, and we start to talk about delivering personalisation across channels to deliver a seamless and relevant experience. From a brands point of view, making communications more relevant means the consumer is more likely to be receptive to messaging. Consumers benefit from this because they dont experience marketing that doesnt interest them. Ashwin Saddul, managing director at content platform Better Than Paper, sums up the challenge: Attention is a currency, and getting the right message to the right person at the right time and building a personalised connection with prospects will be critical for successful digital marketing. However, marketers need to understand their audiences to achieve this. Theres an increasing need to segment the demographic and psychographic market of audiences by assessing their different personality traits, values, attitudes, interests and lifestyles, so that tailored, relevant content can be delivered, says Saddul. need to know l Data is key to making crossplatform communications more personal l Some customers are wary of giving up data for this purpose l AI platforms are able to automatically generate tailored advertising l Brands need to be up front with customers on what their data is used for l GDPR can be seen as a pretext for renewing your relationship with your customers How personalisation has evolved While personalisation techniques have generally developed on a channel-bychannel basis, the new frontier, according to Lloyd, is in drawing diverse sources of information together. The trend has been to unify the data, develop algorithms using more advanced machine-learning techniques, and deploy [advertising] wherever we can recognise the customer, he says. We might recognise where a customer is in their product life-cycle; what product to offer next; what their interests are, their lifestyle; how price-sensitive they are; what channels they engage with, and the risk of them defecting. Matthew Heath, chairman of customer engagement agency Lida, agrees that technology platforms have a significant role in creating large volumes of personalised content. We can now manage communications in millions of variants across all channels, with decision-making technology that can help determine right customer, right message, right time and place, and automation capability that can assemble the communication itself, he says. Establishing the value exchange Beyond doubt, the crucial ingredient for personalised communications is data and its far from clear how willing customers are to hand over their personal information. There is a growing awareness of the value of personal data, says Heath. Its seen by individuals as an asset of genuine value, which they will only spend with brands they trust. In Heaths experience, however, the reaction from consumer research groups is far from the Big Brother stereotype often described. Customers [are] generally very open to the idea that we should make the most of what we know about them to be more useful and engaging especially from brands offering a service of some kind, where personal knowledge is particularly relevant. He points to research by the Columbia Business School that suggests 75 per cent of customers are happy to share their data with brands they trust. Trust is the key, and private channels are seen as more appropriate for personalisation than the wider digital world. Brands need to focus on educating customers about what they are getting in return: Be clear about the value exchange you are offering, says Heath. What data are you using and whats in it for them? Responding to the GDPR With the General Data Protection Regulation (GDPR) coming into force on 25 May, marketers are adapting to the notion of increased transparency. Heath believes they shouldsee this as an opportunity rather than a threat. GDPR does not stop us from personalising, but it does mean we have to be transparent and open with those customers who are happy for us to talk to them, he says. The simple reality for many brands is that it will be far more effective to manage relationships with a group of customers who are open to that dialogue,than to try to interrupt the livesof those who just dont want that kind of connection. Lloyd is keen to avoid adopting a stance that positions the GDPR as an obstacle to be stealthily skirted. GDPR will restrict possibilities, but Id rather take a more optimistic viewpoint that it should shine a light on current practices and make everyone work harder to think about the customer. The new regulations could, in fact, lead to healthy conversations with customers about what they are actually looking for. Its a great opportunity to re-engage with existing customers about the relationship they really want, says Lloyd. Dont see it just as a legal compliance hurdle to hinder your marketing use it as an opportunity to build a new, more transparent deal with the customer. Quality rather than quantity Beyond this, Lloyd advises marketers to have informed discussions with their legal teams to ensure they interpret the regulations clearly. Build personalisationuse cases to allow everyone to make informed decisions about what is and isnt compliant. Also, make use of the Information Commissioners Office and other industry bodies, to validate which use cases are acceptable. For Heath, it comes down to the quality of the customer connection not the quantity. Smart, innovative personalisation is all about thinking through the data that we can legitimately use, to be as relevant as possible, and finding a way to deploy that at scale across all touchpoints, he says. To get a truly personal service less than a generation ago, you had to visit a Savile Row tailor, a Rolls-Royce dealer, a Pall Mall wine merchant. Done well, personalisation brings this kind of customer experience within the grasp of the mass-market brands, not just the luxury ones. cim.co.uk/exchange