Hyper-personalisation – or adjusting your marketing message to appeal to individual consumer behaviours and preferences – isn’t new. Many businesses now incorporate some level of hyper-personalisation into their campaigns, such as emails encouraging customers to complete ‘abandoned basket’ purchases, or using machine learning to better understand individual customer’s likes and dislikes.
However, the introduction of the General Data Protection Regulation (GDPR), which has given consumers greater control of the use of their personal data, may have left you unsure whether you can continue to use hyper-personalisation within your marketing.
The short answer to this question is yes, although we need to be careful how we do it. GDPR means that marketers can no longer collect or process consumer data automatically without letting customers know what it will be used for and getting their permission to do so. It encourages a more equal exchange of benefits between businesses and consumers, which can work more effectively for all. Plus, post-GDPR databases should become cleaner and more effective as a result, leaving marketers with potentially shorter, yet more responsive, groups of consumers to communicate with.
Research from the Direct Marketing Association (DMA) has found that 57% of consumers are pro-personalisation and 62% said they would have improved confidence about sharing data with companies after GDPR. Fundamentally, all aspects of post-GDPR marketing, including hyper-personalisation, must be delivered in a way that enhances the experience for consumers and doesn’t encroach on their data rights.
Working with consumer data post-GDPR can seem challenging. However, offering consumers the kind of hyper-personalisation that benefits them in return, as well as being completely transparent about it, can make them much more comfortable to share their personal information or give their permission for its continued use. GDPR has brought data marketing back to its roots; the act of using personal information responsibly to not only generate business, but also to create a better experience for customers – a value exchange.
Here are some examples of how personal data collection is enabling innovative, hyper-personalised services that work equally well for marketers and consumers alike.
As of December 2017, over a million cars in the UK had been fitted with a telematics box, more commonly known as a ‘black box’. These devices sit out of sight behind the dashboard or under the bonnet and record data from every journey the car does, taking down metrics such as the type of road used, speed, braking force, accelerating and cornering.
Black boxes are designed to create a picture of your driving style over time, so that the insurance companies who fit them can reward safer drivers with a cheaper, completely personal premium. Insurers no longer need rely on traditional demographic segmentation to assess a driver’s risk; each driver can be quoted to reflect their real-world habits on the road. According to SAS Institute, 25% of people would be willing to have a black box fitted to their car in return for the possibility of saving money on their car insurance. This figure seems to be rising too; apparently black box policies are the fastest-growing area of the car insurance industry, increasing by 6-8% per quarter.
Working in much the same way as a black box on a car, fitness trackers, bio-data recorders and other examples of wearable tech store up a constant stream of personal activity information as you go about your day. They monitor physical data such as movement, heart rate and sleep patterns, and urging you to move around when you’re sedentary for too long.
And they seem to be working for plenty of us; global research firm Gartner has predicted that by 2021, 10% of people who wear a health-monitoring device will have made positive lifestyle changes that elongate their life expectancy by an average of six months.
As well as serving to lower health and life insurance premiums for individual consumers, wearable health devices are allowing a growing number of businesses that provide their own insurance schemes to offer their employees health-conscious perks. Corporate wellbeing is a developing area of focus for many companies and wearable tech is playing a valuable role in demonstrating the advantages of a healthier lifestyle, helping to create employees who are more aware of their own fitness on a personal level.
Although not a new concept by any stretch, loyalty programmes are a great example of hyper-personalised added value for consumers in return for their data. Not only can they help to boost sales, an effective loyalty programme should create a feeling of exclusivity for customers and strengthen the relationship between them and the brand in question.
Businesses can use the personal and behavioural data consumers agree to provide on sign up to suggest products and services, special offers and extra retail opportunities specifically designed to appeal to them.
Our award-winning loyalty scheme, created for IKEA, rewarded members with personalised offers, vouchers and event invitations in return for in-store visits. IKEA FAMILY resulted in an extra 66,000 people through branch doors within a year, incentivised some of the brand’s most profitable customers and enabled them to glean vital data insight on consumer behaviour at the same time.
Keeping the wants and needs of your customer base at the heart of your hyper-personalisation marketing efforts can help to ensure a GDPR-compliant approach. After all, personalised services should mean better services for them, so be sure to shout about the added value consumers can expect to receive if they allow you to collect and process their personal data.
If you’re uncertain how to optimise your marketing post-GDPR, or you simply want the consumer data you hold to work harder for you, we can help. Get in touch today to find out how.