Planning for 2024: Personalization Challenges & Solutions

THE SITUATION

80% of consumers are more likely to buy from a company that provides a tailored experience.

AND

72% of customers will only engage with personalized messaging.

(Source1: Slideshare, 2021)

(Source2: SmarterHQ, 2022)

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THE OPPORTUNITY

It’s no secret that personalization is a crucial aspect of earning and keeping modern consumers. This starts with a full and detailed understanding of their wants, needs, and expectations. After all, customer insights are the driving force of effective personalization. If you’re still in the “understanding” phase and looking to capture more holistic insights, I suggest checking out one of my previous newsletters focused on customer persona development – you can read that here.

For those of you with a fully fledged inventory of detailed customer insights, you may be considering ways to optimize your efforts heading into 2024. With just under two months before the new year, now is a great time to reflect on what has worked well, what needs some adjusting, and ways to evolve your efforts moving forward. By getting a jump on strategic personalization planning, you’ll have more opportunities and be better prepared to address some of the inevitable challenges that will pop up along the way.

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THE CHALLENGE

In relation to The Opportunity, the challenge is straightforward – finding time, resources, and energy to think forward when there’s so much to be done in the present. But prioritizing strategic planning with regard to personalization will prepare your future-self for success and make the future-present more manageable. I know, I’m probably preaching to the choir and the value of forward-thinking is not lost on anyone. So, rather than expand on the challenges of time management and resource allocation, let’s discuss a few specific challenges within the context of customer personalization.

As I previously mentioned, the first step is gathering the customer insights needed to implement personalization techniques. There needs to be a detailed understanding of who customers are beyond their transactions; including what they think, feel, want, need, and expect. Once those pieces are in place, it’s time for the rubber to meet the road. With hopes of helping prepare for a successfully personalized 2024, here are some common challenges I see brands facing – along with solutions to address those challenges.

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1) Data Quality and Accuracy

Inaccurate or incomplete data can lead to misguided personalization efforts, causing frustration for both brands and customers. This not only applies to maintaining high quality and accurate data from a technical standpoint, but also from a strategic perspective. For data-driven personalization to be effective, the numbers need to be actionable based on your specific goals and objectives. So, think about accuracy and quality in terms of both the data itself as well as its relevance within the context of your goals.

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2) Integration of Siloed Data

With so much customer information available from varied sources, businesses often have data scattered across multiple departments and systems. When insights are fragmented and siloed, they aren’t living up to their full potential. Integrating these siloed sources to create a unified customer profile can be challenging, especially with high volumes of new data coming in. So, back to The Opportunity, now is a great time to address any disconnects and work toward bringing all the puzzle pieces together.

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3) Overreliance on Algorithms

While algorithms play a key role in personalization, it’s possible to rely too heavily on them. This often leads to a lack of human-centricity and authenticity. The point of personalization is to build meaningful connections and deliver memorable experiences. But when personalization efforts feel automated and robotic, they’re not serving their intended purpose. So, striking the right balance between automated processes and maintaining a human touch is essential.

THE SOLUTION

If you were nodding your head while reading the challenges, you’re not alone. Personalization is one of those topics that is easy to grasp conceptually, but much more difficult to implement tactically. Here are some ways to address those challenges as you look to strengthen and evolve your approach.

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1) Conduct Regular Data Inventory Assessments

Before going out to capture new insights, start with organizing the insights you already have. This is a chance to assess data quality and accuracy, identify outdated information, and remove redundant or irrelevant data. It will also help spot data gaps that, if filled, will produce even deeper and more meaningful insights. It’s great when new data answers new questions, but there’s added value when new data builds upon existing knowledge. Regularly conducting data inventory assessments will help ensure your insights inventory stays accurate, actionable, and organized.

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2) Holistic Customer Insights Strategy

I talk about this topic a lot, and with good reason. Building a holistic Customer Insights Strategy is crucial for any data-driven initiative because it serves as the framework for keeping all the pieces together. It helps shine a light on blind spots, sidestep pitfalls, and maximize the impact of ongoing investments. Most notably, it helps break down siloes and avoid fragmented data.

With a holistic insights strategy in place, you’ll know which types of data are needed to achieve specific goals, you’ll increase cross-departmental data implementation, and you’ll have guardrails to keep ensuing efforts on track. Without it, new and existing data will likely remain scattered, siloed, and underutilized.

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3) Humanized Data & Processes

Algorithms, AI, and data mining are incredibly valuable tools for data-driven businesses. But they are automated processes that can sometimes miss important context, nuance, and emotional factors present within your customer insights. I often say, customer insights are meant to reinforce not replace our intrinsic customer knowledge and understanding.

So, ensuring your data is relevant and actionable often relies on human eyes, not just tech-driven processes. Furthermore, the human element will help internally socialize your customer insights. Since you know your team better than any machine, you’ll be able to package and deliver data-driven insights in palatable, digestible, and memorable ways. Insights on their own will only go so far. There needs to be context and circumstantial factors included that only a human can effectively apply.

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MY ADVICE

Navigating the world of tech-stacks, complex data, and shifting objectives can make personalization seem a daunting task. So, why wait until the eleventh hour to get your strategic approach in order? The more time and energy you put into planning today, the better positioned you’ll be for success tomorrow. And while you can’t predict or address every future challenge, the simple act of getting started will help identify which known and unknown factors are worth prioritizing.

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HOW WE CAN HELP

Since data-driven insights are the foundation of effective personalization, we at MacKenzie have a lot to offer in support of your 2024 customer experience and marketing objectives. We can host a Customer Insights Strategy Workshop with your team to guide the strategic development process – customizing each phase to suit your specific goals and objectives. We can help with data inventory assessments, identifying current insights gaps, and planning future data collection initiatives to fill those gaps. From high-level strategic guidance to ground-level tactical involvement, we can build a solution that meets your every need!

YOUR TURN

I’d love to see your comments and thoughts about data-driven customer personalization. Do you have examples of overcoming key challenges? Are there any personalization tips or tactics you’ve found effective? Did any questions or comments come to mind while you were reading?

By sharing your thoughts, ideas, and suggestions, we’ll foster a collaborative community where actionable insights are the foundation and collective success is the outcome.

Do you have a stat, trend, or topic you’d like me to write about? Send me a message or share it in the comments.

I’ll add it to my list of future newsletter topics!