Search
Profile

Ask your question

Close

Product Personalization

What Is Product Personalization?

In the current era, consumers expect the firms they engage with to provide personalized service and offers. They believe that companies have the technological tools to analyze their specific needs and can perform this task with minimal effort, so businesses should develop such ability.

One may imagine that this kind of mass operation will need some resources and financial investment but by implementing artificial intelligence and automated processes, this capability can be readily available for any business.

Traditionally, personalization was focused on a set of rules based on existing data. Firms used to collect data in advance without any consideration for real time data but now better and much faster results can be obtained by using AI that allows businesses to conduct profiling and real-time analysis to optimize each conversion. This process is defined as predictive personalization and is driven by machine learning.

Details

Why Is It Important to Have a Good Product Personalization Model?

The great progress of the recent years in the field of personalization technology, data, and analytics will soon allow marketers to create much more personal experiences across each moment of engagement with clients or potential clients. A good product personalization model could drive 5 to 15 percent increases in revenue and 10 to 30 percent increases in marketing spend efficiency, mostly by using product recommendations and triggered communications.

The model is designed in such way that its predictions are based on probability. Basically, the model converts visitor characteristics into a number that represents the probability of a user to take certain actions. By doing so, the learning algorithm can create more parameters to explain the relation between the variables and, by finding the explanation, businesses can provide a personalized service to consumers.

What Internal Data Should I Have for a Good Product Personalization Model?

Most applications of the product personalization model would need examples of inputs and outputs in order to learn the mapping between them. In order to use the models effectively, we will need to use enough valuable data, of which there are three main types:

  1. Intent: information collected based on actions
  2. Transaction: an exchange, agreement or transfer in a given time period
  3. Psycho-demographics: psychographic factors include values, interests, and opinions.
    Demographic factors include variables like age, location, gender and more

What External Data is Essential for a Good Product Personalization Model?

The general idea is to collect complete and comprehensive data that reflects the entire customer interaction from all touch-points. This means companies need to track every interaction a customer has with them, such as how the customer uses the product, which emails a customer opens, when a customer contacts support, and how many times clients choose to engage in a live chat.

What External Data May Prove Useful for a Good Product Personalization Model?

Personalization aims at recognizing special customer traits such as inclinations and preferences in order to individualize the inter-linkage process. The consulting team should adapt the website layout to customer’s requirements and personalize the preparation of customer dialogs. The customer requirements captured during this interaction process have to be correctly interpreted into product specifications through mapping methods that translate customer preferences and requirements into product-specific characteristics and ensure that the product specifications are adequately portrayed to the customer.

What Are the Main Challenges of the Product Personalization Use Case?

Personalization can be a powerful tool for any business, but the large databases that have been created must be securely stored as they contain private and sensitive information. Any leak of information can cause a lot of legal and financial trouble.

Interesting Case Studies and Blogs to Look Into

Science Direct: User-experience Based Product Development for Mass Personalization: A Case Study
Smart Insights: A case study showing the impact of Personalised Product recommendations on retail merchandising

Tangible Examples of Impact

As restaurants navigate through an uneasy climate in 2020, developing a strategy to improve the customer experience and maximize long-term profitability is paramount. Restaurants need new customers, more visits, and larger checks, and they need it all to come with a positive ROI. In the COVID and post-COVID environments, it may sound like an impossible feat.

It’s becoming increasingly clear that personalization is the key ingredient restaurants need in order to survive—and then thrive in a post-COVID world. Research shows that personalization influences consumer behavior, improves the consumer experience, and optimizes marketing ROI and profit.

MRM EXCLUSIVE: The Power of Personalization

Relevant datasets

TrueNorth Insight Top10erp.org

by

TrueNorth Insight Top10erp.org is the company’s online software that helps firms in the manufacturing and distribution business compare various ERP software to find the right match with their products.

0 (0)   Reviews (0)

Semasio Audience Targeting

by Semasio

Semasio Audience Targeting uses the Semasio semantic approach to optimize marketing strategies. This approach uses records of keywords and phrases used by site visitors to create Semantic User Profiles. Then Semasio takes keyword and phrasal similarities in the browsing habits of established customers to create Seed Audiences that you can use to plan your marketing campaigns.

In each case, Semasio provides companies the ability to tailor their marketing approach with either specific or more general keywords.

0 (0)   Reviews (0)

Trustpilot Review Platform

by

Trustpilot Review Platform allows consumers to compare companies, rate and also write a review.

0 (0)   Reviews (0)

AlternativeTo Platform

by

AlternativeTo Platform provides recommendations on crowdsourced software and can be used in a web-based software, desktop computer and mobile apps.

0 (0)   Reviews (0)

Webhose.io News API

by

Webhose.io News API enables direct access to news articles around the world.

0 (0)   Reviews (0)

Similar Data Providers

  • The Arabesque GroupThe Arabesque Group
    5 (1)
    Reviews ()
    Data sets (4)
    Established in 2013, the Arabesque Group is a leading global financial technology company that combines AI with environmental, social and governance (ESG) data to assess the performance and sustainability of corporations worldwide. In addition to their Asset Management consultation service, the groups offers Arabesque S-Ray GmbH and Arabesque AI Ltd. datasets.
  • Black Box Intelligence Consumer IntelligenceBlack Box Intelligence Consumer Intelligence
    5 (1)
    Reviews ()
    Data sets (0)
    Black Box Intelligence Consumer Intelligence is designed to provide detailed analysis on individual competitor sales and performance data.
  • Home by VendigiHome by Vendigi
    4.3 (3)
    Reviews (1)
    Data sets (1)
    Home by Vendigi provides audience data for all things home buyers, remodelers, and sellers. Their data comes from first-party sources like top multiple listing systems (MLSs) major brokers like RE/MAX, Coldwell Banker, Century 21, and Sotheby's. Users of Vendigi's Home data range from home and garden retailers to insurance institutions to telecom companies.