Prove Personalization’s Business Value in Money, Not Just Marketing Metrics (Rasmus Houlind, Agillic)

Ivana Karhanová: Let’s start simple. Can you define personalization for us?

Rasmus Houlind: Personalization covers a broad spectrum, from product recommendations to greeting customers by their first name in emails, marketing automation, and personalized campaigns. It leverages insights about customers’ preferences to deliver messages that resonate personally with them, enhancing their experience and relevance.

Ivana Karhanová: And what would personalization not include?

Rasmus Houlind: True personalization involves crafting experiences unique to each individual. It’s not about sending the same message to broad segments. Broad, untargeted campaigns don’t fall under this definition.

Ivana Karhanová: So, receiving a generic email from my bank that doesn’t align with my interests would be an example of what personalization is not?

Rasmus Houlind: Exactly. That’s not personalization. It’s the opposite, akin to spam or generic brand messaging.

Ivana Karhanová: Why do some companies only personalize the greeting in an email but leave the rest irrelevant?

Rasmus Houlind: That’s a superficial level of personalization. It might capture attention initially but fails to engage meaningfully. Challenges often lie in data integration issues, lack of resources, or not knowing how to effectively use data.

Ivana Karhanová: Moving on to data, what framework should businesses use to achieve proper personalization?

Rasmus Houlind: Start by identifying personalized use cases for your company, calculate potential gains, and present a business case. Prioritizing projects becomes easier when you translate the benefits into the universal language of money, which everyone understands.

Ivana Karhanová: What are the largest obstacles when trying to align marketing and data or IT departments?

Rasmus Houlind: The main challenge is prioritization. IT departments often have backlogs, so providing a compelling business case is crucial for getting your project to the top of the list.

Ivana Karhanová: Let’s discuss visualizing an ideal journey and business case.

Rasmus Houlind: A dramatized vision, like a cartoon video showing our desired future customer journeys alongside supporting calculations, makes a compelling case for project prioritization.

Ivana Karhanová: You’ve mentioned the bow tie framework in personalization. Could you explain this concept?

Rasmus Houlind: The bow tie framework represents the essence of personalization: matching customer insights with relevant content. It metaphorically connects insights on one side to content on the other, emphasizing the importance of tying them together for each critical moment in a customer’s journey.

Ivana Karhanová: How does this framework apply across different streams like paid media, marketing automation, and website personalization?

Rasmus Houlind: Ideally, personalization should be approached from a top-down, channel-agnostic perspective. However, companies often start with specific disciplines. The goal is to eventually unify these efforts, recognizing that the same insights and messages apply across all channels.

Ivana Karhanová: Connecting the dots between different data points and actions across platforms can be challenging. How do you recommend addressing this?

Rasmus Houlind: Customer Data Platforms (CDPs) play a crucial role in unifying and cleansing data, bridging the gap between unknown web visitors and known customers. The challenge then shifts to integrating this unified insight with content across various platforms.

Ivana Karhanová: Looking ahead, where do you see the future of personalization in the short term (one year) and long term (five years)?

Rasmus Houlind: We’re likely to see more unification in handling content, similar to the advancements in data management. AI will play a significant role, especially in content repurposing and ideation, although it requires careful management to maintain brand integrity.

Ivana Karhanová: With the evolution of AI in personalization, what should businesses focus on to ensure effective use?

Rasmus Houlind: Data quality and governance remain foundational. However, leveraging AI for personalization also demands a nuanced understanding of brand guidelines and the ability to manage content creatively and responsibly.

Ivana Karhanová: What tools, datasets, or software are essential for achieving effective personalization?

Rasmus Houlind: Beyond CDPs for data unification, companies need data warehouses for comprehensive data storage and marketing automation platforms like Agilic for outbound communication. The right tools depend on specific needs, including website and paid media personalization.

Ivana Karhanová: Lastly, is there anything about personalization that concerns you?

Rasmus Houlind: The potential for digital platforms to reinforce negative behaviors is a concern. It’s essential for consumers to regain control over their digital interactions, using technology to support positive habits and personal growth. This requires a collective effort from both consumers and technology providers.

Ivana Karhanová: This has been a deep dive into the world of personalization with Rasmus Houlind, Chief Experience Officer at Agilic. Rasmus, thank you for sharing your insights with us today.

Rasmus Houlind: Thank you for having me, Ivana. It’s been a pleasure discussing these important aspects of personalization with you.