Hyper-personalisation: Inducing behaviours through data — how machine learning and automation can help customers make valuable and informed decisions

Luís Coelho and Gonçalo Cachola
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Luís Coelho: Celfocus, Portugal
Gonçalo Cachola: Celfocus, Portugal

Journal of Digital Banking, 2023, vol. 8, issue 3, 198-209

Abstract: While personalisation is not an entirely new topic, there is currently massive hype around it. This is because service providers realise that they need to be more cost-effective in engaging with their customers, and also because customers now demand to be treated individually and in a personalised way. Several market trends have been adopted in recent years, bringing service providers to the level where they currently stand. The previous trends were both beneficial and applicable in a particular context; however, today, new approaches are required for service providers to progress, improve and move to the next level. Achieving a hyper degree of personalisation can be challenging — it requires investment, time and the right strategy. Furthermore, it is not a straightforward path, and it is essential to understand the business and technical challenges that service providers must address and overcome to succeed — challenges for which hyper-personalisation is the answer. This paper explores the concept of hyper-personalisation and its potential to induce customer behaviour through datadriven insights. It highlights the importance of knowing customers and leveraging their preferences and habits to deliver valuable and informed decisions. The financial services industry has the significant advantage of having access to a huge installed customer base and its data. In general, it is not a problem of lack of data that these industries face but rather one of how to derive actionable insights from it. The hyper-personalisation approach is bridging data with cognitive and digital capabilities to deliver unique, in-context and highly relevant experiences. With hyper-personalisation, service providers can scale up the personalisation leveraged by artificial intelligence (AI) and machine learning (ML) to deliver experiences and recommendations in real time to individuals, creating a true one-to-one personalisation.

Keywords: hyper-personalisation; data; advanced analytics; banking (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2023
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