Customer Experience Podcast

Personalization is a developing area in Customer Experiences. With AI driving what could be possible, many of you might be wondering how you can best leverage its capability in yours. To that end, we invited our special guest, Graham Hill, Ph.D., to explore the rapidly evolving field of Personalization in Customer Experiences.

With decades of experience in customer relationship management (CRM) and Customer Experience, Hill shares valuable insights into how personalization, particularly with the help of AI, is reshaping customer interactions and driving business results.

Hill explains that personalization operates on a continuum, ranging from broad, branded communications to highly individualized content tailored to a single customer’s needs.

He also emphasizes balancing mass and personalized communication within a marketing strategy. While mass communication builds general brand awareness, personalized and individualized content can significantly enhance customer engagement and drive sales.

Hill discusses the impressive impact of personalized communications, noting that customized content can be up to nine times more effective and individualized content up to 44 times more effective at eliciting customer responses than generic communications.

However, he warns against over-personalization, advising businesses to consider their goals and the specific problems personalization can solve before investing heavily in these technologies.

Hill also critiques traditional segmentation methods, advocating for outcome-based segmentation instead. By understanding what customers are trying to achieve and how they measure success, businesses can design more effective personalized communications that resonate with customers at different stages of their journey.

The episode also features a case study from Hill’s work with Toyota Financial Services, where implementing personalized communication in the repurchase management program led to a significant increase in response rates—from 10% to 35%. Hill’s approach underscores the importance of clear goals, continuous improvement, and a customer-centric focus in personalization efforts.

In this episode, we also explore:

• The balance between mass communication and personalization in marketing strategies.

• The significant impact of personalized and individualized content on customer engagement.

• The importance of outcome-based segmentation for effective personalization.

• The dangers of over-investing in new technologies without clear goals.

• Practical steps for understanding customer needs and enhancing key interactions through personalization.

• The role of AI tools in supporting but not overshadowing simple, effective personalization efforts.