 Many
organizations are exploring how to utilize social media to collect better
customer information,
which will, in
turn, enable better customer communications, improve customer service,
build retention,
etc. This vision has not been lost on the vendors of personalization technologies,
who have
pre-announced social media-based solutions. Combining Web 2.0 and
personalization,
however, seems to
blur some of the most basic rules of marketing: those related to exclusivity
and exploitation
(i.e. "create and
maintain exclusivity" and "never exploit your customers"). Will these new
solutions deliver
real value, or will "personalization 2.0" send customers running?
In
their next-gen packaging of personalization, many vendors are touting the
merits of smart printing
and smart targeting.
With smart printing, organizations print only high-value documents, and
everything else is
delivered electronically or turned off altogether. The information contained
within
the printed
documents is highly targeted in order to provide maximum value to the recipient
(smart
targeting). This
approach seems straightforward enough and makes great business sense for 2010.
Dig
a little deeper into some of the prescribed approaches for smart targeting, and
things get more interesting. Personalization 2.0 seeks to take smart targeting
to the next level by engaging each customer in
one-on-one "dialogues"
designed to collect very specific information. With this approach,
organizations
would gain insight
into each client's likes, dislikes, purchasing preferences, purchasing plans,
budgets, etc.
via interactive
games on the customer's iPhone, through Facebook or directly on the
organization's website.
For
example, Joe might play the "Five-Minute Vacation" game while he's checking his
online credit card
balance. It's a
quick diversion that lets him escape from his desk to his favorite hobby,
skiing. It also allows
his credit card
provider to collect enough information from Joe to make highly targeted
recommendations
about his next
vacation. For example, his next credit card statement would include promotions
from lodges,
resorts and ski
rentals located in the exact skiing destination that he selected in the app.
This
is where some interesting questions arise about exploitation and exclusivity.
While Joe might be
amused or even
impressed with the first instance of his "smart statement," by the second and
third time,
he's going to
recognize that the games that initially seemed like a fun customer perk are a
tactic to get more
money out of him.
Once he feels exploited, the likelihood that he takes his business elsewhere is
very high.
At
the opposite end of the spectrum lies exclusivity. Exclusivity is the name of
the game in marketing;
your target
recipient should feel that their involvement with or purchase of your product
or
service makes them
part of a very exclusive club. But what happens if it becomes so exclusive that
they
are the only
member? Joe is a smart guy. He knows that the ski vacation package offered to
him in his
statement is based
on information he provided about his likes. How long do you think it
will take before
he wonders which
ski resort was promoted to his next door neighbors, the Joneses, in their
credit
card statement? It
is possible to take exclusivity too far. If you do, your customer loses interest.
Personalization
is a tried-and-true tactic for motivating target audiences to respond in a
desirable way,
whether it be
sustained customer loyalty, upgrading their account or adding additional
services. The
concepts of smart
printing and smart targeting make great business sense, as long as the
methodologies
and practices
behind creating relevant content are respectful of the client base. As it's
currently being promoted,
personalization
2.0 walks a fine line, one that, if crossed, will quickly alienate customers.
When
considering your
personalization strategies for 2010, ask yourself: Just how personal do you
want to get?
KELLEY
WEST
[kelleywest@madison-advisors.com]
is a
vice president
with Madison Advisors, an
advisory fi rm
that provides thought leadership,
strategic
consulting and market
research in the
print and electronic
communications
space. |
