There was a time when personalized customer experiences were aspirational - something reserved for forward-thinking businesses, disruptors, and innovators. But no longer. Today, personalized customer experiences are becoming the norm. They are essential. Recent research shows that 71% of consumers expect businesses to deliver customized interactions (FT). Data also seems to suggest that companies that grow faster drive 40% more revenue from personalization than those businesses that grow more slowly (McKinsey).
For businesses looking to take advantage of personalization, first-party data is critical. It is information collected directly from your customers. As such, it offers a straight connection to your customer base and provides the most valuable insights into their needs, behaviors, and habits. In other words, using first-party data effectively can significantly improve the personalization of customer messaging and interactions, resulting in higher engagement and improved customer loyalty. EDC solutions help you do exactly that.
What is first-party data?
First-party data is extracted from direct interactions with the customer and includes information such as:
- Demographic information
- Website interactions
- Purchase history
- Survey data
- Customer feedback
- Customer support and social media interactions.
It is valuable to businesses because it is unfiltered - no third party exists between the organization and its customers. As such, companies benefit from greater control and data accuracy, while ensuring better data privacy. Businesses own this data and do not have to rely on third parties for it.
The power of personalization in messaging
Consumers now expect personalized experiences across all touchpoints, and businesses recognize the importance of delivering a highly effective bespoke message at the right time through the most appropriate channel.
Personalization enables companies to deliver nudges, reminders, and powerful marketing messages where they will have the most significant impact. It’s one of the principal reasons businesses that embrace first-party data personalization experience faster growth. They are deploying their limited marketing resources in a far more refined and efficient manner.
Personalized messaging results in several other benefits. Studies reveal that it increases short and long-term customer value, with 81% of consumers stating they would purchase more from companies if they were guaranteed personalized experiences. They are also more likely to make recommendations, with 79% stating that they would recommend companies that personalize interactions to people they know (Genesys).
How to use first-party data for personalization
To use first-party data for the greatest effect, businesses should focus on three core personalization techniques.
- Segmentation - first-party data enables organizations to build more accurate customer profiles and, as a result, improve segmentation. Segmenting your audience based on consumer behavior, preferences, demographics, and purchasing power allows for more targeted and relevant messaging.
- Dynamic content - first-party data also enables the creation of more dynamic content in emails, websites, apps, and other marketing materials. Dynamic content adapts to individual consumers and segments, so your customers see relevant messages that resonate with their needs and interests.
- Behavioral triggers - personalized messaging isn’t just about customizing content to specific customers. It’s also about reaching out to consumers at the most impactful moment. First-party data enables businesses to deliver personalized messages in response to behavioral triggers, such as a customer abandoning their shopping cart or making a purchase. These personalized follow-up messages are remarkably powerful.
Implementing a successful personalization strategy
To achieve a level of personalization that delivers results, companies must develop and implement a considered personalization strategy. Robust data collection and management systems are the foundation on which this strategy is built. In many instances, developing these systems requires external assistance and expertise.
At the same time, businesses must emphasize omnichannel consistency and prioritize standardized experiences across all channels, whether email, SMS, or via apps. Finally, a successful personalization strategy will also consider privacy and ensure compliance with regulations that exist in the territories in which the company operates.
At EDC, we provide industry-leading data management guidance, services, and solutions, empowering businesses to maximize the value of the data at their disposal and facilitating effective data utilization.
EDC’s solutions for data-driven personalization
To assist businesses in delivering data-driven personalization, EDC offers three main solutions.
- Customer Communication Management (CCM)
Our CCM solution is a centralized platform that enables businesses to create, generate, and deliver personalized messages, content, and documents across multiple channels, at exactly the right time. It incorporates omnichannel consistency and data compliance features. - Intelligent Document Processing (IDP)
EDC’s IDP solution automates the extraction and analysis of first-party data from documents, reducing the cost and time investment required to collect important information and making it easier to utilize that data for personalization. - Conversational AI
Finally, our Conversational AI solution facilitates real-time customer support interactions and personalizes each engagement based on your first-party data. At the same time, it acts as a unique opportunity to collect more first-party data that you can utilize to inform future personalization.
Game-changing personalization with EDC
Modern businesses cannot afford to ignore the trend toward greater personalization. In today’s digital-first commercial landscape, personalized experiences are increasingly the norm, and companies that fall behind will quickly lose customers to more switched-on competitors.
At EDC, we prioritize the confidentiality and security of the first-party data we handle. Our data management solutions are designed to protect customer information with high-level encryption, secure storage practices, and strict access controls, ensuring compliance with the highest data protection standards. By maintaining this level of security, we enable businesses to deliver personalized experiences that build trust and loyalty, while our comprehensive personalization solutions allow companies to use the power of first-party data to engage with their audience more effectively. By simplifying digital personalization and making it accessible to all, we help organizations across the Middle East provide consumers with more rewarding experiences, ultimately driving greater customer satisfaction and loyalty.
To learn more about how EDC solutions enhance your organization’s ability to offer accessible financial services to startups, speak to one of our expert advisors today.
