Customer today expect and demand more personalized and relevant experiences. To meet these elevated demands, service providers from retailers to banks to government agencies are moving away from product-centricity towards experience-centricity to obtain greater insight into their consumers.
But collecting customer data is only the beginning – end to end customer engagement strategy also requires blending data from multiple sources to create a contextually relevant, timely and location specific view of customer needs (whether they know it themselves or not).
2. Why Hyper Personalization?
Why Now?
Customer today expect and demand more personalized and
relevant experiences. To meet these elevated demands, service
providers from retailers to banks to government agencies are
moving away from product-centricity towards experience-
centricity to obtain greater insight into their consumers.
But collecting customer data is only the beginning – end to end
customer engagement strategy also requires blending data from
multiple sources to create a contextually relevant, timely and
location specific view of customer needs (whether they know it
themselves or not).
3. One Mold Fits
All Approach
Templated
Profiles
Customer
Segmentation
Loyalty
Program
Offers
Real Time
Location
Based
Tracking
ML Driven
Offers and
Recommend
-ations
Hyper
Personalization
Evolution of personalization
4. Contextual Timely Location Specific
What is Hyper Personalization?
A hyper personalized customer experience is:
Physical
Context
Psychological
Context
Relational
Context
Time of
Desire
Time of
Purchase
Time of
Consumption
Channel Place Environment
6. Emerging cloud-based solutions
connecting discrete entities and
organizations through APIs while
providing enhanced security,
privacy, and granular rights
management to each enabling
deeper customer insights across all
participants
Rich fabric of data collected across
the organizations that are now
being enriched with external data
sources and further enhanced with
increasingly sophisticated AI
algorithms to extract greater
insights and value
Explosion of various devices,
sensors, beacons and interaction
modalities (AR/VR, wearables,
digital screens, digital assistants
etc.) further enrich available data
and how organizations engage with
consumers
New organizations like Amazon,
Alibaba, Tencent, Rakuten and Grab
are disrupting existing industry and
market dynamics demonstrating
highly effective new business
models, striking concern and
reactive postures from incumbents
Key Drivers of Hyper Personalization
Leverage digital
assets
New value chains,
business models and
partnerships
Hyper Personalized
Experiences
The next evolution of personalization will
be through digital ecosystems that will
result in organizations creating new
partnerships and market dynamics that
leverages a broader set of digital assets in
a ‘coopetition model’ with non-traditional
or cross industry players.
It is only through new ecosystem models
will organizations be able to achieve hyper
personalization.
7. McKinsey: New Ecosystems are likely to emerge in
place of many traditional industries by 2025
Estimated total
sales in 2025, $T
We recently interviewed 300 CEOs
worldwide, across 37 sectors, about
advanced data analytics. Fully one-
third of them had cross-sector
dynamics at top of mind. Many
worried, for instance, that “companies
from other industries have clearer
insight into my customers than I do.”
Defending your position will be
mission critical, but so too will be
attacking and capturing the
opportunities across sectors before
others get there first. To put it another
way: within a decade, companies will
define their business models not by
how they play against traditional
industry peers but by how effective
they are in competing within rapidly
emerging “ecosystems,” comprising
a variety of businesses from
dimensionally different sectors.
10. Hyper personalization of
products, services and
experiences can be
realized through 3
different modalities.
Co-Create
Need
Realizing hyper personalization
Influence
Need
Predict
Need
11. Significance of Connected Hyper Personalization
What happens when organizations become
disintermediated or commoditized?
As innovative organizations continually reinvent
and reshape how they understand and engage
with consumers, hyper personalization is now
the key battlefront to win the hearts and wallets
of consumers.
According to a study by Bain & Company, 54%
of global respondents trust at least one big tech
company more than banks in general and 65%
of Prime customers are open to banking with
Amazon if offered 2% cash back on all
purchases.
If people are willing to switch this easily to
another services provider, will you wait until it's
too late?
Defend
Extend
12. MyRelationships
MyWork
MyLeisure
MyRetail
MyHealth
My Wealth
I’m notified when a
colleague I just
emailed is nearby
I’m notified when my pet
just finished his meal
I collaborate on a
document in real time
with my colleagues
I easily transition to
working on my phone
as I’m ready to board
I’m directed to the nearest
lounge as soon as I enter the
airport along with the
amount of time I should
spare to walk to my gate
Forgot my sunglasses! I try on the latest sun glasses
through an augmented reality mirror and purchase the
one I like through a vending machine
I’m notified that my hotel room has been
upgraded as I just made lifetime Platinum!
I get 3 offers for my favorite kind of food
as well a notification of my free
Starbucks drink I haven’t used yet
I tell my assistant to convert
$1000 USD to Mexican Pesos
in my joint chequing account
My assistant recommends me to
purchase travel insurance as the
weather and traffic patterns
indicate likely delays
The airlines is notified of my
dietary restrictions and ensures
my meal caters to my taste
My assistant prepares a running path for me
close to my hotel and it looks like the weather is
perfect tomorrow for a morning jog!
Enablement of
Hyper
Personalization
Requires
Relentless Focus
on Consumer
Needs and
Experiences
Illustrative:
Consumer-Driven
Hyper Personalization
in Leisure & Travel
I care about my
experiences not
who provides them
Use of the Digital Workplace Ideation Workshop “Digital-Workplace-Ideation-Workshop_03_Overview.pptx” deck can be useful in support of this conversation.
Download from Services Portfolio: https://microsoft.sharepoint.com/teams/ServicesPortfolio/SitePages/Offer.aspx?Title=Digital%20Workplace%20Ideation%20Workshop&OID=1192
