58% of businesses prioritize hyper-personalized products for customer value: Report

With the intensifying competitive landscape, the ability to offer hyper-personalised customer interactions has become a key differentiator in the world of commoditisation and similarity of products and services.

According to Affinidi, a data and identity management company, 58% of the businesses surveyed across Singapore, India, Australia and New Zealand (ANZ), and the US have sought to differentiate themselves by prioritising hyper-personalised products and services to deliver greater customer value.

In a report ‘Unlocking Customer Value as an Experience-Orchestrated (X-O) Business’, Affinidi noted that companies in mature markets such the US and New Zealand are already prioritising hyper-personalised products and services due to heightened competition, ranking this their highest business priority. Meanwhile, Asian businesses, more specifically in Singapore and India, are placing priority on profitable growth instead, with personalisation as their lowest business priority.

"As hyper-personalisation is becoming increasingly essential in customer acquisition and retention, serving as a key tenet of profitable growth, Asian companies will similarly be shifting more attention towards value outcomes through personalisation," the report has projected.

To differentiate and drive loyalty, 30% of Asian organisations will undergo structural and technological changes to deliver value outcomes by 2027, the report said.

While more organisations are casting the spotlight on the importance of harnessing the true power of their customer data , only 33 percent of businesses can anticipate their customers’ needs and drive value-centric, highly personalised services. This is because of hurdles in data collection, where 56% of businesses highlighted that data collection and management forms the main challenge. Such figures are set against a backdrop where cyberattacks and data breaches are on the rise and harder to prevent. End-users are becoming more cautious of he data they share with companies.

Customers face a dilemma: the desire to get personalised experiences — essentially, value; while at the same time, discerning how much data they should share to achieve such a goal. Thus, businesses must navigate the fine line between delivering tailored experiences and proving they can protect customers’ personal data.

While there are existing data protection regulations, such as the General Data Protection Regulation (GDPR) in Europe, Digital Personal Data Protection (DPDP) Bill in India, and Personal Data Protection Act (PDPA) in Singapore, 59 percent of businesses surveyed indicated that they still struggle with security concerns from customers during the registration process.

In order for businesses to effectively leverage experience as a competitive differentiator, they must transform into experience-orchestrated (X-O) businesses, with data as the linchpin for success as per the report. Only 10% of businesses surveyed across India, Singapore, New Zealand, and North America have reached the most advanced stage in their journey toward becoming an X-O business.

“Turning X-O will be pivotal for businesses to stay competitive in today’s digital landscape. It is no longer about just acquiring data, but also knowing how best to utilise it to cater to customers’ needs and preferences. HI provides the scalability and flexibility businesses need to meet growing personalisation demands, while ensuring their customers feel secure, valued, and in control of their personal information –fostering long-term customer loyalty and reducing data-related risks,” said Glenn Gore, CEO of Affinidi said.