1、The Paradox of Personalization:Balancing Consumer Expectations with Privacy ConcernseBook 2023 BlueConic Intellectual Property B.V.All rights Page 2 Table of ContentsIntroductionThe State of Empowered ConsumersWhen Consumers Want Personalization in the Customer LifecycleHow to Deliver Personalized M

2、oments Throughout the Customer Lifecycle5 Key Questions to Ask When Considering Personalization Technology0304 06 08 14 2023 BlueConic Intellectual Property B.V.All rights Page 3 IntroductionCompanies obsess over personalization,especially in marketing.According to Forrester,its the most employed ma

3、rketing strategy,with 64%of marketing leaders saying they use personalization to reach consumers.1Yet personalization is paradoxical.While consumers crave personalized experiences,they also despise companies knowing so much about them.Increasing concerns over privacy have made consumers more careful

4、 about the data they share with brands and when they share it.For personalization to remain an effective strategy,companies must comply with their customers preferences and implement personalization from a customer-led perspective.This eBook is a distillation of thoughts from a recent webinar with B

5、lueConic Principal Customer Success Manager Khurram Moiz and Forrester Senior Analyst Jessica Liu,where they discussed the strategies,data,and technology required to successfully design and execute customer experiences that address the personalization-privacy paradox,including:The state of empowered

6、 consumersWhen consumers want personalization throughout their lifecycleHow to effectively deliver these personalized momentsWhat data and technology you need to succeedTo hear it in their own words,listen to the complete webinar.Listen to the Webinar1“The State of Consumer Personalization,”Forreste

7、r,2022.2023 BlueConic Intellectual Property B.V.All rights Page 4 2“Consumer Benchmark Survey,”Forrester,2022.Consumers are much more empowered today than they have ever been.There is more willingness to experiment(particularly true of younger cohorts),greater self-efficacy,a desire to optimize thei

8、r own experience,and significantly more information savviness,says Lui.She notes that consumers know where to find relevant information and share that information often and quickly with one another.At the same time,there is greater digital and physical integration in the consumer experience,such as

9、options to buy online and pick up in-store.Devices also dominate today,with more consumers relying on devices to assist with purchasing and decision-making.The State of Empowered Consumers4.4devicesAccording to Forrester,US consumers are connected,on average,to 4.4 devices,4.4.platforms,and 5.3 chan

10、nelsmany of which are natively mobile.24.4platforms5.3channels 2023 BlueConic Intellectual Property B.V.All rights Page 5 To meet consumer expectations amid this complex digital landscape,brands need to create moments.”Creating these moments requires personalization.But where an individual is in the

11、 customer lifecycle may influence their desired amount of personalization and the amount of data you need to deliver it.Balancing these limitations can create significant challenges to getting personalization right.The State of Empowered ConsumersMoment:As defined by Forrester,a moment is a point in

12、 time and space when a person interacts with the brand to get what they want immediately and in context.2023 BlueConic Intellectual Property B.V.All rights Page 6 While marketers tend to lean heavily into personalization in the pre-purchase stage,Forrester has discovered that this approach is in opp

13、osition to when most consumers actually want and trust personalization.More than half(54%)of people in the US are unwilling to share personal information to receive more relevant advertising from companies.3 Even when it comes to non-paid channels like email,most consumers still resist personalizati

14、on.Only 27%of US adults were interested in receiving personalized emails.4 However,consumers are more open to personalization once theyve established a relationship with a company and have become loyal customers.For instance,42%of US adults say personalized experiences are an important component of

15、loyalty programs.But paradoxically,only 42%of marketing leaders say they use personalization in loyalty efforts.5To provide maximum customer value and get the most out of any kind of personalization efforts,companies need to fixate less on those earlier stages of discover,evaluate,and commit,and bet

16、ter balance personalization in the latter initiate,participate,actualize,and advocate stages,says Lui.Moiz concurs.Making personalization more prevalent and relevant based on a better understanding of consumer preferences,interests,and behaviors as they move through the lifecycle is where we found o

17、ur customers to have a ton of success.When Consumers Want Personalization in the Customer Lifecycle3“The State of Consumer Personalization,”Forrester,2022.4 Ibid.5 Ibid.So,heres the paradox.Companies are heavy handed with personalization in the pre-purchase stages of the customer lifecycle and less

18、focused on the post-purchase stages,where its more welcomed and more vital.”Jessica Lui,Senior Analyst at Forrester“2023 BlueConic Intellectual Property B.V.All rights Page 7 Lovesac Unifies Data Throughout the LifecycleLovesac,a furniture retailer,is well known for its large beanbag-style chairs.Us

19、ing BlueConic as its customer data platform,the company is able to capture different types of online and offline data in unified customer profiles,including behavioral,transactional,demographic,consent status,and more.This unified,actionable,and privacy-compliant data gives Lovesac a holistic view o

20、f the customer and the ability to be mindful of how personalization occurs throughout the customer lifecycle.For example,in addition to identifying and converting anonymous web visitors to known visitors,Lovesac can use the platforms built-in segmentation,lifecycle orchestration,and activation capab

21、ilities to provide a very targeted execution of personalized moments in real time and where it matters most.How to Deliver Personalized Moments Throughout the Customer LifecycleEffectively delivering personalized experiences requires three fundamental pillars:strategy,data,and technology.In this sec

22、tion,well look at each in more detail.2023 BlueConic Intellectual Property B.V.All rights Page 8 2023 BlueConic Intellectual Property B.V.All rights Page 9 StrategyBefore embarking on personalization use cases,its important to define what is meant by personalization and how to execute it.Getting the

23、se answers starts with four questions:Whats the consumer need?Whats the business objective?Whats the tactic?Who needs to be involved?Not only should customer preferences and data lead the way,but you must have specific key performance indicators(KPIs)in place to measure success.Then,you need to appl

24、y specific tactics at specific points in the customer lifecycle either at a single moment in one phase or multiple tactics orchestrated across all stages of the lifecycle.Finally,because personalization requires collaboration across departments,you need cross-departmental cooperation to understand t

25、he context,channel,and trigger for when to create a personalized moment.To develop your personalization plan,start thinking about where in the customer lifecycle youre trying to make an impact.Remember that personalized moments are most impactful on the backend of the customer lifecycle,as you often

26、 know more about your customer and they trust you more as well.How to Deliver Personalized Moments Throughout the Customer LifecycleStart thinking about where in the customer lifecycle youre trying to make an impact.And remember that personalized moments are most impactful in the back end of the cus

27、tomer lifecycle,but you should also be looking at how to balance at all stages of the customer lifecycle.”Jessica Lui,Senior Analyst at Forrester“2023 BlueConic Intellectual Property B.V.All rights Page 10 Data is what fuels contextual understanding of your customers.It informs the content,channel,a

28、nd trigger all the important components of a moment.There are four different types of data you can use to support personalization:Zero-party data:A sub-set of first-party data that a customer intentionally shares and grants the brand permission to use.First-party data:Data about a companys customers

29、 that is collected and owned by that company,including website data,CRM data,loyalty IDs,behavioral and transactional data,consent for marketing,implied interests based on browsing behavior,and customer scores calculated from analytics.Second-party data:Data shared between two parties that have a re

30、lationship with each other,such as a consumer goods company and a retailer that want to combine their customer data sets to discover new insights,measuring marketing overlap and impact,and activate new lookalike audiences.(Read more about the growing relevance of second-party data.)Third-party data:

31、Data that brands buy or utilize from a third party to augment consumer segmentation for market research,prospecting,or cross-selling.DataHow to Deliver Personalized Moments Throughout the Customer Lifecycle 2023 BlueConic Intellectual Property B.V.All rights Page 11 You also need static and dynamic

32、data:Static data:Data that is used to create defined audience segments,such as people over 50,specific zip codes,etc.Dynamic data:Frequently updated data like a consumers energy consumption,bank balance,or biometric activity,as well as data like time,temperature,or location.This data needs to be fas

33、t,it needs to be updated frequently(maybe even constantly to be in real time),and it needs to be used quickly,such as to send out a mobile push notification to someone entering a store.To use all of this data effectively,you need to:Identify what data you need:Determine the minimum viable data you n

34、eed for a specific personalization use case and whether or not you have that data.If not,design a method to capture this data,such as explicitly asking customers for the data or providing an equitable exchange of value.Locate where the data lives:Most companies have a wealth of data available to the

35、m,but since its often siloed in disparate systems and sources,its important to know where the data lives across departments.Create a plan to access and activate the data:Consult with each data owner to ensure you can conform to their data integrity plans and follow the proper governance and integrit

36、y protocols.Verify data quality:Apply data hygiene and identity resolution processes to help ensure your data is accurate and complete.Data fuels personalization,but it must be the right data for the type of moment you want to create,and it must be accurate,accessible,and easily activated.This is wh

37、ere having the right technology can play a critical role.How to Deliver Personalized Moments Throughout theCustomer Lifecycle 2023 BlueConic Intellectual Property B.V.All rights Page 12 TechnologyExecuting any personalized moment requires an integrated ecosystem of technologies that can help you gat

38、her the necessary insights and support the decisioning,delivery,and,ultimately,the optimization happening throughout the customer lifecycle.Your technology also needs to enable you to use data effectively and in a privacy-compliant manner.A customer data platform like BlueConic can address these req

39、uirements by providing marketing,customer experience,digital product,and other growth-focused teams with access to a unified view of the customer,paired with the tools to activate that data when and where they need it.Using out-of-the-box connections to other online and offline technologies,BlueConi

40、c captures and unifies privacy-compliant first-party data into profiles that provide the most comprehensive and up-to-date record of what you know about your customer.The high quality of the profile data accounts for everything from consent status,to frequency of data updates,to identity resolution.

41、Equally important,BlueConic delivers that unified profile data back to business teams in a format that their tools can use to improve how they build segments,conduct modeling and analytics,and engage customers throughout their lifecycle.Marketing and other growth-focused teams no longer have to wait

42、 on internal IT teams or external agencies to create customer scores and pull lists for segmentation processes that not only take weeks and cost thousands of dollars,but also effectively neutralize efforts to interact with customers in a timely,personalized way.How to Deliver Personalized Moments Th

43、roughout the Customer LifecycleExecuting any personalized moment requires a very integrated ecosystem of technologies that can help you support those insights,the decisioning,the delivery,and,ultimately,the optimization happening throughout.You need all of that to deliver personalization across touc

44、hpoints throughout the customer lifecycle.”Jessica Lui,Senior Analyst at Forrester“2023 BlueConic Intellectual Property B.V.All rights Page 13 Finally,BlueConic recognizes that you dont need every piece of granular information associated with prospects and customers that is stored across your entire

45、 technology stack to carry out your preferred personalization use cases.By gathering an initial set of customer data(known as your minimum viable data),BlueConic enables you to quickly execute on priority use cases that are important to the business,while building on your data foundation and expandi

46、ng your use cases over time.How to Deliver Personalized Moments Throughout the Customer LifecycleWhat we want to do is empower broader teams and those that are going to be hands-on to quickly execute on priority use cases to create a point of differentiation.”Khurram Moiz,Principal Customer Success

47、Manager at BlueConic“Page 14 2023 BlueConic Intellectual Property B.V.All rights reserved.1.What skill sets will you need to deploy the technology?Consider who your end user of the technology is,and whether the technology requires some kind of specialized skill set or if its easily adoptable by anyo

48、ne.2.What level of personalization are you trying to achieve?Consider the different depths of personalized moments,from segmentation all the way to anticipating what customers want next.Different technologies can achieve those at different depths.3.What level of identity resolution do you need?There

49、 is a spectrum of anonymous to known customers.Different technologies have different levels of capabilities in terms of matching anonymous to known users.4.How automated is the decision-making process?Does the technology use rules-based decision-making,machine learning,or a combination of both?The t

50、ype of automation does impact the speed,volume,and delivery of those personalized moments.5.How does the technology track,measure,and optimize each moment?Make sure you understand the analytics capabilities of the technology,including how and how quickly it is optimizing experiences.5 Key Questions

51、to Ask When Considering Personalization Technology 2023 BlueConic Intellectual Property B.V.All rights Page 15 Personalize Per Customer PreferencePersonalization will be at its most powerful when its done according to your customers preferences both where they want personalization in the consumer li

52、fecycle and at the level of privacy they prefer.When youre able to combine a strong personalization strategy with the right data and technology,you can execute personalized moments when,where,and how your customers prefer.Learn how to transform and perfectly time your personalization strategies to your customers preferences with our customer data platform.Request Demo+1 888 440 2583 2023 BlueConic Intellectual Property B.V.All rights reserved.