Hyper-Personalization is a Value Exchange for Millennials
By Greg Heist, Chief Innovation Officer, Gongos, Inc.
Brands today are clamoring to develop personalized experiences, customized products and individualized recommendations. And rightly so. Consumers are prepared to trade off a valuable asset in exchange for their personal information. In particular, millennials are significantly more likely than prior generations to provide brands with their personal data in exchange for convenient, customized and timely treatment.
According to recent internal research, which found that more than half of millennials are willing to have their facial details and fingerprints on file with retailers if it means: a more convenient experience (55 percent), customized products and services (55 percent), or real-time promotions (52 percent).
The openness to sharing such sensitive information speaks volumes about the desirability of personalization, but it is not to be taken for granted.
Brands must deeply understand how their actions can build – or destroy – trust among their customers. Like any interpersonal relationship, years of positive actions can be neutralized by one critical misstep.
Beyond this, these findings emphasize the need for retailers to co-create authentic ways of delivering personalization to their customers, be it in terms of products, services, experiences or promotions.
Ultimately, this data speaks to consumers’ hunger for a hyper-personalized approach to building a relationship with retailers and brands. And, it’s an incredibly powerful opportunity. But success or failure hinges on retailers developing a type of “fair value exchange” with consumers to ensure this opportunity translates into stronger loyalty, deeper engagement and meaningful growth.