McKinsey explains personalisation rights and wrongs — SwiftERM

Personalisation matters more than ever before

Research shows shoppers have a strong point of view on personalisation

…And consumers reward those that get it right

Performance propels outperformance

Out-performers organise their business around personalisation

  • They lean into data and analytics to identify opportunities. Looking across the customer life cycle, leaders build a granular view of where there is the most value. They leverage customer segments and microsegments, and factor in behavioral, transactional, and engagement trends. They use those insights to define and quantify their personalization objectives and ground their efforts in customer-centric key performance indicators (KPIs).
  • They invest in rapid activation capabilities powered by advanced analytics. Leaders develop at-scale content creation and AI-driven decisioning capabilities so they can respond to customer signals in real-time. They leverage predictive analytics and models to determine what content and messages to serve which customers (for example, propensity models, or predictive next-best-action algorithms). They also establish robust measurement processes that track the impact of customer interventions and feed that information back to their systems and teams. These processes help them deliver the right content through the right channels at the right moments in a consumer’s journey.
  • They invest in fit-for-purpose martech and data. Rather than letting a “thousand flowers bloom,” personalisation leaders target a specific set of customer outcomes and use cases that support them. They align organisational resources around these use cases and work back from the desired outcomes to build the data and martech road map and identify the enablers and investments needed to deliver.
  • They commit to an agile operating model. Businesses that succeed in scaling personalisation create teams that cut across marketing, product, analytics, and technology, using a hub-and-spoke approach. Each hub owns specific elements of the personalisation journey, with each spoke empowered to build underlying use cases. Together, these teams run hundreds of tests per year, enabled by advanced data analytics and test-and-learn techniques.
  • They invest in talent and training to refine capabilities. Leaders bring a similarly data-driven approach to building their teams and organisational capabilities. They focus in on the skills needed to support personalisation at scale (for instance, digital and ecommerce acumen, advanced analytics, product management, or performance marketing). Then they map these capabilities against their current talent base, using the results to inform hiring, training, and upskilling. This approach allows companies to anticipate the expertise and tools they need as their personalisation program advances.

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Founder & CEO of SwiftERM the personalization SaaS. Microsoft partners.

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David Swift

David Swift

Founder & CEO of SwiftERM the personalization SaaS. Microsoft partners.