COVID-19 has had a significant impact on how brands interact with customers
As good customer experience (CX) often influences future purchase decisions, increasing customer engagement and satisfaction is the top business priority for about 1/5th of the Indian organizations, according to IDC India Digital Transformation Survey, April 2022.
When the pandemic hit, more consumers started to use digital channels and platforms for daily tasks such as buying groceries, opening a bank account, purchasing medicines, etc., thus changing customer interaction and expectations. The digital interactions resulted in a significant amount of customer data being collected from diverse applications. Indian organizations can leverage this opportunity that was led by the pandemic through “hyper-personalization”.
“COVID-19 has had a significant impact on how brands interact with customers. Customer communications will need to be more proactive, consistent, and scalable. Hyper-personalization can serve the purpose of retaining more customers,” says Rithika Ponnala, Senior Market Analyst, Digital Transformation practices, IDC India.
Hyper-personalization is a common approach that involves the use of data, analytics/AI, and automation to personalize the consumers in the most effective ways. With increased personalization (or hyper-personalization), companies can enhance their customer engagement and experience.
“While the tsunami of data is overwhelming, it offers many great opportunities like increased efficiency to enhanced user experience. Organizations are attracting and holding users’ attention through personalized communication and customized experience and creating a hyper-personalized user experience,” says Neha Gupta, Senior Research Manager, IDC India.
Other key aspects covered in this IDC Perspective Report are the key recommendations for the implementation of hyper-personalization:
- Breaking data silos: Data stored in varied legacy locations will need to be consolidated as a single source so that data can be cleaned, analyzed, and put into use.
- Investing in technologies: Data integration tools, Big Data technologies, and AI/ML are some of the technologies that can be utilized for realizing the value of structured and unstructured customer data.
- Have a CX Lead and CX dashboard: Once the data and the related technologies are in place, organizations will need to narrow down on the critical metrics that define the business environment. With a CX dashboard and a dedicated chief, the customer data will be utilized, and the usage will be monitored.
- Maintain the right balance between personalization and privacy: Data privacy is one of the challenges that enterprises mention when asked about factors holding them back from investing in data-related technologies and practices. While India is on the way to renewing the laws that govern data and privacy, it is critical for organizations that are prioritizing hyper-personalization to maintain the balance.
