The history of personalization

David Edelman, senior lecturer at Harvard Business School, takes us through the history of personalization in marketing, starting from the early days of direct mail to today's AI-driven strategies. He explains how channels have evolved and discusses the importance of moving from merely targeting customers to enhancing their overall experience. Learn how companies can gather and utilize data more effectively to create lasting, personalized customer interactions.
About the speaker

David Edelman

Harvard Business School

- Harvard Business School

David is Executive Advisor & Fellow at Harvard Business School

Personalized, Customer Experience in the age of AI

Show Notes

  • 00:00
    Introduction to Customer Strategy in the AI Era.
    Discussion on the importance of customer strategy in the era of AI and its impact on businesses.
  • 05:45
    Evolution of Personalization from DM/Telemarketing to AI.
    Exploration of the different stages of personalization and its transformation over time.
  • 12:20
    The Role of Personalization in Enhancing Customer Experiences.
    Insights into how personalization, when done effectively, can revolutionize customer experiences and add value to brands.

Quotes

  • "the interaction on digital channels had a whole exhaust of data, some of which you could actually act on in the moment." (David Edelman)

  • "In mobile, if you've downloaded my app as a retailer, then I can then send you notifications of things relating to offers and stuff that you can access through the app." (David Edelman)

  • " one of the most important things overall is that we're moving from thinking about this in just a marketing frame of mind to one that's about more broadly customer experience." (David Edelman)

  • “ you need to understand what the possibilities are, but you don't even know until you try. And AI can enable that. It can actually create five different versions to test. That's gen AI. But then there's other AI, such as machine learning AI” (David Edelman)

Episode Chapters

  • 02:11
    Stages of Personalization
    History of personalizationThe evolution of personalization in marketing begins with direct mail and telemarketing, where segmentation was the primary focus.
  • 04:00
    Direct Marketing Channels
    Early direct mail to catalogs In 1989, personalization was more about targeting using direct mail, telemarketing, and catalogs, like sending specific catalogs to customers based on their previous purchases.
  • 06:23
    Internet Era
    Early online personalizationThe advent of the Internet allowed for real-time data collection and personalization of landing pages, marking a significant shift in how marketers approached targeting.
  • 07:17
    Outbound Marketing Channels
    Email marketing The shift from direct mail to email marketing brought advantages like reduced costs and the ability to track interactions, leading to the early days of AB testing.
  • 08:41
    Web 2.0 Era
    Mobile, content, and digital advertisingMobile devices introduced location data, content management improved, and digital advertising became more sophisticated, allowing for targeted messaging.
  • 10:17
    Marketing Strategy Shift
    Push to pull methodsThe focus shifted from pushing campaigns to targeting customers in real time based on their situations and interests, increasing relevance and responsiveness.
  • 12:07
    Age of AI
    Beyond marketing to customer experiencePersonalization in the AI era extends beyond marketing, shaping customer experiences throughout their interaction with brands, not just during purchase decisions
  • .13:33
    Example from Aetna
    Using data for customer serviceAetna used personalized videos to help customers understand their health plans, leading to improved customer satisfaction and engagement.
  • 16:38
    Data Usage
    Collection and applicationCompanies can better personalize experiences by collecting relevant customer data through direct questions and interactions, enhancing product relevance.
  • 19:21
    AI Integration
    Testing and learning in real-timeAI enables continuous testing of variables to determine the best marketing strategies, allowing for more nuanced and effective personalization.
About the speaker

David Edelman

Harvard Business School

- Harvard Business School

David is Executive Advisor & Fellow at Harvard Business School

Personalized, Customer Experience in the age of AI
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