Personalization for customer experience
Personalization is a marketing tool. It should enable companies and brands to address app users as personally as possible. Users are sent content and offers that are individually tailored to their needs. For this purpose, the search and usage behavior of the users is used in apps, so that each individual is provided with different and suitable content. The aim of personalization is to build up a customer relationship and thus long-term customer loyalty. Used correctly, it makes it possible to increase the retention and also the turnover of a company.
Why personalization is so important
Quite simply: the user should be offered the best user experience. The more personal it is, the longer he stays and can thus become a long-term customer. As a company it is therefore important to tell a story that carries the user away and shows him that his wishes are fulfilled by this company. If this is not the case, he quickly turns to other providers. Personalization gives users the feeling that companies know them and therefore know what users need.
Apps and services that perfect personalization
Here, of course, the social media apps come to mind immediately. Facebook, for example, shows every user different and thus personalized content in the NewsFeed – based on his usage behavior, which pages (companies and brands) he liked, whom he follows and with whom he is friends. The algorithm records these facts and provides corresponding content, which is also prioritized within the feed. Facebook also works with push messages. As soon as a new comment, like or friend request is received, the user is informed and redirected to the app.
Amazon, Zalando and Netflix are three companies that use personalization to deliver the best possible user experience to their customers.
Amazon is the prime example when it comes to personalization. Users are shown recommendations for every product they look at. Who doesn’t know: Customers who bought this also bought it. Each user also has a completely individualized start page, which attracts him or her with offers and products that are interesting for him or her.
The former, for example, creates its own mini online shop for each of its customers from which suitable clothing, accessories and shoes can be selected. Here, Zalando refers to the customer’s expressed preferences and, of course, the search and buying behavior of his customers. For Zalando, one thing is certain: the customer should see exactly what he likes and wants to buy. Push messages keep the customer up to date, e.g. when items from the wish list are available again or promotions around the favourite label as well as personalised offers.
Netflix offers the customer suggestions for TV series and films – based on what he has already seen or has included in his wish list / watch list. In addition, each title is given a recommendation in percent. When browsing through the different tabs, the customer can see exactly whether the series or film would be something for him. At regular intervals, customers also receive e-mails with suggestions > “Recommendations for you”.
Who benefits from personalization?
First and foremost the app users. They are only informed about topics relevant to them and do not have to actively search themselves. Machine learning and algorithms are used to make suitable suggestions. But loyalty programs such as vouchers or the use of a digital stamp card in an app also provide information about the behavior and can be used for personalization. The provision of an app profile is also a good way to individualize offers. Companies can use it to request information, e.g. favourite brand, and send the user suitable offers via push notifications and chat messages.
When is it successful?
A well thought-out personalization is successful if it is not noticed by the user. He simply feels optimally addressed and understood. But if the impression is created that information has been secretly collected about the user, individualisation will not be crowned with success. Companies should always actively ask for this information and give the user an incentive to transmit it voluntarily.