Segment-of-one marketing: steps to follow to make it pay off

WITH the proliferation of smartphones and the growing amount of personal data available, a "segment of one" marketing and sales approach is now rapidly becoming reality. Most consumers have proven willing to surrender a degree of privacy and share their personal data if they receive services, content or other features that they value in exchange.

The upshot of such personalisation for company performance: In our experience, a segment-of-one approach, implemented thoughtfully at the right moments, can lift sales and allow companies to charge a premium price for the personalised experience. A recent survey of US consumers and retailers by Infosys found that among retailers using personalised offers and promotions, 74 per cent experienced an increase in sales; 61 per cent, an increase in profit; and 55 per cent, an increase in customer loyalty.

However, it's all too easy to build a personalisation programme that falls short of expectations. You can spend a lot of money on data, app development and analytical capabilities, without seeing a high return on investment. Many companies learn these lessons the hard way.