Tailored fabric drapes in a way that off-the-rack garments cannot. The fit is impeccable and exudes an undeniable sense of refinement. When you are wearing your favourite tailor-made suit, and you feel confident. That’s the power of personalisation.
With GenAI, that degree of personalisation can be elevated, empowering businesses to take their customer experiences to an all-new height. Personalisation is a process that creates a relevant, individualised interaction between the business and its customers, designed to enhance the latter’s experience. Research findings today suggest that companies who focus on and invest in personalising their strategies, products, solutions, and marketing are proven to enjoy better brand loyalty and profits.
80% of customers are more likely to do business with a company if it offers personalised experiences and 90% indicate that they find personalisation highly appealing. This means that personalisation can almost be considered a hygiene factor that customers take for granted and can depart for a competitor if the company gets it wrong.
What great personalisation looks like
Considering the rapidly changing customer expectations, it’s critical for businesses alike to timely respond to the need for personalised experiences, not only to set them apart from competition, but also to thrive.
Personalisation, when done right, can often deliver a 1-2% lift in total sales by elevating brand loyalty and share-of-wallet among already-loyal customers.
Great personalisation goes beyond merely adding a customer’s name to an email, but is the outcome of the right strategy, the right product, the right message, the right customer, and the right moment coming together.
For instance, Amazon focuses on complementary product recommendations, Nike on in-store personalisation, and Sephora on providing omnichannel experience, there’s a common theme all the greatest brands in the world follow, focusing on personalising customer journeys.
The right strategy
Personalisation begins with a well-defined strategy tailored to meet the specific needs and preferences of the target audience. The right strategy involves crafting a go-to-market plan that resonates with the target audience on a deeper level.
The right product
Offering products and services by integrating features, design, and functionality that strictly cater to the needs and wants of customers and address their pain points while bridging specific gaps enhances personalisation.
The right customer
Effective personalisation requires a deeper understanding of the target audience, including demographics, behaviours, and psychographics. Using data analytics, market segmentation, and customer profiling to meet changing customer needs adds great value.
The right channel
Personalisation extends to choosing the most appropriate communication channels to reach and engage with the target audience. Considering the habits and preferences of your customers deeply can go a long way in personalising the messaging and content of the communication.
The right time
Delivering the right message to the right customer at the wrong time can make business efforts redundant. Whether sending a targeted offer based on past-purchase behaviour or providing real-time support, timing plays a crucial role in personalisation.
Personalising entire customer journeys
Research suggests that excess choices can induce anxiety and quite paradoxically lead to decision-making paralysis and what is described as ‘buyer’s remorse.’ Owing to this effect, customers have evolved to expect not an overwhelming number of options but a comprehensive experience from brands.
Consequently, numerous companies are now embracing personalisation to engage with customers across multiple touchpoints in their end-to-end journeys.
Each touchpoint encapsulates critical moments of interaction between the customer and the business, spanning various channels from digital platforms like websites and mobile apps to more traditional avenues such as phone calls and in-store visits.
Integrating personalisation into the customer journey framework demands businesses to meticulously identify the touchpoints that hold the utmost significance for their customers and tap into them with clear objectives.
With the advent of AI, businesses are now leveraging data like never before to fuel their personalisation strategies. Large Language Models (LLMs) are a powerful tool that enables companies to analyse vast amounts of textual data to understand customer preferences, sentiment, and intent more deeply.
By employing LLMs, businesses are efficiently generating personalised content, recommendations, and scaled responses across various touchpoints, enriching the customer experience and driving engagement.
Large Language Models (LLM) – what exactly is it?
Large Language Models or LLMs are sophisticated GenAI algorithms that apply neural network techniques and are extensively trained with vast amounts of data to understand and generate human-like content using self-supervised learning methods. While many techniques were tried and tested, LLMs are based on deep-learning methodologies.
LLMs are trained on extensive datasets, enabling them to excel at various tasks. The predominant architecture of LLMs is transformer-like, comprising both an encoder and a decoder during training. The decoder predicts the next token in a sentence, while the encoder anticipates missing tokens within a sentence.
One of the main advantages of LLMs is their self-attention mechanisms. These mechanisms significantly enhance the model's ability to comprehend each token within a sentence, thereby improving its capacity to generate responses that closely resemble human-like language.
Self-attention allows the model to analyse the importance of individual elements within a sequence by considering their relationships with other words in the same sequence. This process involves assigning attention scores to each word, which determines the level of focus it receives during sequence processing.
Additionally, LLMs offer adaptability to specific tasks through parameter configuration, including options such as temperature and max_tokens, alongside prompt engineering.
How can you use LLMs to personalise customer experiences?
LLMs have the tremendous ability to revolutionise customer experiences across a wide range of industries. By deploying them, businesses can improve personalisation, enhance customer support systems, and create highly intelligent interactive virtual assistants that generate valuable information and humanly engage with customers. This includes:
Enhanced hyper-personalisation
By using data mining and pattern recognition, LLMs can swiftly analyse customer data and provide personalised recommendations and even offers based on individual preferences, behaviours, and past purchases, while anticipating future demands.
Improved customer assistance
LLMs can enhance and expedite real-time customer support, answering FAQs promptly and resolving customer queries efficiently. This results in faster response times, minimised wait times, and improved issue resolution.
Increased engagement
Leveraging automated survey analysis, LLMs can spark interactive and dynamic conversations, mimicking human-like interactions and fostering brand engagement and satisfaction.
Advanced demand forecasting
LLMs can be used for predictive analytics. This means that businesses cannot just predict future preferences and trends based on historical customer data and user behaviours, but they can also maintain optimum stock levels, retaining brand loyalty.
Standardised multilingual support
With high-end language translation capabilities, LLMs can break down language barriers by providing customer support in real-time. This enables global businesses to offer standardised support for their customers across different markets.
Translating the power of LLMs to business impact
Our LLM-integrated framework at Metyis includes conversation and advisory, customised product descriptions and recommendations, loyalty programs, and website design. We follow a dual-tier approach, empowering our partners to provide personalisation in multiple touchpoints across their customers’ journeys.
At the first tier, we provide our partners with a customised LLM-centric framework that lets their customers immerse in personalised conversations within a more standardised interface. This setup brings in the first layer of personalisation by enabling them to thoroughly explore and evaluate their options before and during purchasing.
Transitioning to the second tier, the interface evolves into a fully customisable solution. Leveraging deep analysis of user preferences, behaviours, and interactions, we meticulously craft a tailored interface that delivers a personalised end-user experience, significantly boosting brand loyalty.
Personalisation, powered by LLMs, is the key to unlocking a tailored and engaging user experience. Understanding individual preferences delivers content and interactions that foster customer loyalty and satisfaction. This dynamic duo anticipates user needs and streamlines the process, making it a win-win for businesses and users alike.
At Metyis, we empower our partners across various industries to seize breakthrough moments in technological advancements such as GenAI to create a positive and long-term business impact for them.
About the author behind the article
As the leader of the Project Management Team at the Paris office, Xavier Bruetschy has been at the forefront of delivering cutting-edge digital and IT solutions for the luxury sector for over five years.