Blog 92: How to craft a personalised experience for your customers?

In blog 78 we talked about segmenting our customers. There are broadly six ways to do that i.e., demographic, geographic, psychographic, behavioural, need-based, and technographic.

In this blog, we delve deeper into the fourth way i.e., behavioural. By understanding behaviours, we can create personalised marketing campaigns and experiences. Thereby, increasing retention and customer loyalty.

According to a McKinsey survey, 76% of respondents were likely to stick with brands offering a ‘personalised experience’. Because marketing messages that work for one segment may not work for another. A segment may be attracted by our YouTube content while another segment by something else. This will mean proactively understanding different customer journeys (that continuously changes - refer blog 16 for more on customer journey map). Followed by A/B testing various scenarios to identify what works best for each journey type.

Behavioural segmentation is based on frequency of purchases, frequency of usage, purchase timings, purchase occasions, customer journey stage, customer intent & motivation, loyalty & satisfaction levels etc.

Some real-world execution tactics based on behavioural segmentation:

· Send gift ideas with discount codes when a customer's special occasion is round the corner.

· Send upsell offers once the customer is satisfied with the original purchase.

· Create customised win-back campaigns targeted towards unhappy customers.

· Craft tiered loyalty programs.

· Design product experiences to keep customers engaged.

Each of the above tactics need to be measured for its effectiveness. Use metrics such as open rate, returning customer rate, average order value, retention rate, satisfaction or NPS (net promotor score), customer lifetime value etc. Refer blog 34, blog 58, blog 83 for more on metrics and product analytics.

Jump to blog 100 to refer to the overall product management mind map.

All the best! 😊