One-Size is Dead: Personalization as a Business Imperative

However, Cottam notes that having data is not the same as effectively using data.  “It’s not that CSPs don’t have sufficient data about their customers,” said Cottam.  “It’s more a case of them still struggling to open up their data silos so that they can use the information they have. In this sense the personalization (band)wagon has been put before the data horse.” 

There’s much work to be done in enabling effective personalization.  “Although carriers realize the importance of personalization, they still have a ways to go in order to offer it to their customers,” said Aggarwal.  She noted another recent Amdocs survey in which 50 service providers around the world were asked about personalized services.  “About 56% of service providers personalize outbound notifications specific to a customer’s product, service, or past behavior, and about 30% are planning to offer these services. “

Cottam, likewise, notes that many CSPs aren’t getting personalization right yet, though many are trying.  She notes that the underlying issue in this failure to achieve effective personalization strategy stems to a lack of understanding of subscriber behavior. “ We just completed some research on the 360 degree view and we found very few CSPs have still managed to deliver this,” said Cottam.  “Obviously, it’s hard to fully personalize services if you don’t understand your customer so the SDM/360 degree view initiatives are really important. 

However, it’s worth remembering that personalization, though crucial, is a means to an end rather than an end unto itself.  “Meeting customers’ needs – that is personalizing their service offering – cannot be done though at any cost,” said Cottam.  “The key to doing this profitably is through automation, self-configuration of services and supporting the flexibility to change options.”

And Cottam offers one additional note of caution: “One thing we do know is that bad personalization is a major business risk because there’s nothing worse than a business presuming to know you and then demonstrating they don’t know you at all!” What’s more, over personalization does exist, and can send customers away, so the right level of customization is key.

In short, personalization can provide a middle road for CSPs seeking to avoid the pitfalls of offering too much for too little, while also avoiding the PR headaches of constantly playing the heavy with bandwidth hogs. 

If one-size-fits-all isn't yet dead, it's certainly dying.  Tiers are the first step.  Personalized service may just be the next.