Personalization and Automation – Differences and Interactions

Personalization and automation. What is the difference between the two concepts and how can they interact with one another?

We all probably have some idea what these two concepts mean. However, we perhaps don’t always consider them as two sides of the same coin. Sure, personalization can occur without automation and has been shown to drive higher levels of customer engagement, increased sales, and higher spend, compared to brands which aren’t using it, but that isn’t the whole story.

It’s also true that automation has many uses outside of personalization and has been shown to improve workflows and streamline processes, not to mention the benefits it can have for data processing.

However, this article will be looking at the interaction between personalization and automation and how these two components of modern business can help drive sales and an improved customer experience.

The Fear

The one factor regarding automation which scares brands away from using it is the fear that it will make them seem robotic and impersonal. With such a big emphasis being placed on personalized customer service and marketing these days, businesses are fully aware of how important it is to avoid giving this impression.

However, automation has a role to play in personalization, and it’s just a case of striking the right balance to yield the best results from both.

"The most forward-thinking businesses are using automation, self-service, personalization, and human interaction to strike the right balance for a positive customer experience," writes Forbes Tech Council. "The key is knowing when and where each will offer the most value."

For example, when it comes to your customer service department, the last thing you want is a fully automated and depersonalized operation. Few things get customers more riled up than when they are trying to get an issue resolved and can’t get past an automated chatbot or voice menu. This is especially relevant in the B2B space where any customer service issue has a knock-on effect down the value chain where your customers’ inability to resolve problems with your brand has a direct impact on their customers and so on.

"There’s the temptation to move toward a fully automated customer service model, which may not be in the best interest of the customer," continued FTC. "When the option to speak with a live agent is removed from the equation, there are bound to be frustrated consumers. And where there are frustrated consumers, bad reviews follow. Even worse, they take their business elsewhere."

While automation in customer service can lead to frustration, it can be of terrific benefit when it comes to sending out marketing communications to your audience.

Marketing

If you’ve done the groundwork and segmented your customer database well, automation can allow you to send out bespoke communications which are specifically tuned to each customer profile.

For example, if you are a builders merchant which serves both B2B and B2C customers, you can change your marketing emails to focus on each segment – such as using language more suitable for laypeople in the B2C version or more technical details in the B2B one – and increase the chances of those communications resonating with the intended audience.

Even within those broad segments you can dial up the granularity by segmenting them further. Using the same example detailed above, you could break the B2B category down even more by say, separating out builders, plumbers, electricians, decorators, etc. and then tuning your emails and other communications to each of those – focusing on boilers and copper pipe for plumbers, cables and lighting for electricians, and so on.

When designing your communications, make sure you keep the writing style personal and conversational. Robotic, template-style writing stands out a mile and can undo all your hard work by shining a light on the fact a machine is sending these emails out rather than a human being.

"No one wants to feel like just another number in a long line, which is why conversation context is more important than ever," concludes FTC. "Past conversations and sentiment also help with personalizing each interaction, which will go a long way in not just meeting customer expectations but exceeding them. So, aim to truly delight them every time."

Final Thoughts

Personalization and automation may sometimes seem like two forces at odds with one another. However, while there are certainly areas where the two concepts can butt heads, there are other where they can work together in harmony. The key to successful implementation is knowing the difference.

Personalization and automation are certain to be part of the conversation at B2B Online Orlando 2022, taking place in November at the JW Marriott Orlando Bonnet Creek Resort & Spa, FL.

Download the agenda today for more information and insights.