Businesses are under increasing pressure to provide hyper-personalised customer experiences, but a new study shows that only 10% are prepared to become experience-orchestrated (X-O). The findings, outlined in an IDC InfoBrief commissioned by Affinidi, highlight the need for businesses to tackle challenges around data management and privacy while adopting strategies to deliver greater value to their customers.
Released on 27 November in Singapore, the report titled Unlocking Customer Value as an Experience-Orchestrated (X-O) Business examines how businesses can transform to thrive in a competitive landscape. Drawing from a survey of digital-native businesses (DNBs) in Singapore, India, Australia, New Zealand, and North America, the study explores obstacles to achieving hyper-personalisation and outlines solutions for addressing them.
Hyper-personalisation as a competitive edge
According to the report, commoditisation and product similarities will be the biggest challenges for businesses in the next two years. These factors make it increasingly difficult for organisations to stand out based on product or service alone. As a result, hyper-personalisation has emerged as a key differentiator.
The survey shows that 58% of businesses aim to prioritise hyper-personalised customer interactions to deliver greater value. While companies in mature markets like North America and ANZ have made personalisation a top priority, businesses in Asia are still catching up. In regions such as Singapore and India, profitable growth often takes precedence over personalisation. However, experts predict that by 2027, 30% of Asian organisations will shift their focus to personalisation as a core strategy to combat competition and retain customer loyalty.
Privacy challenges hinder progress
Despite the push for personalisation, businesses are struggling to manage customer data effectively. The survey reveals that 56% of organisations face challenges in data collection and management, compounded by growing concerns over data privacy. Customers remain wary of sharing personal information, especially given the rise in cyberattacks and data breaches. Trust is a crucial factor, as businesses must demonstrate robust security measures to earn customers’ confidence.
Moreover, regulatory frameworks like Europeโs GDPR, Indiaโs DPDP Bill, and Singaporeโs PDPA add complexity to data management. According to the study, 59% of businesses cite customer security concerns during registration as a significant hurdle.
This creates a privacy-personalisation dilemma: customers want personalised experiences but are cautious about the data they share. Businesses must strike a delicate balance between delivering tailored services and ensuring data security.
Becoming an X-O business
To address these challenges, the report emphasises the importance of becoming an X-O business. Such organisations integrate data, systems, and processes across their operations to create a seamless, value-driven experience for customers. The transformation involves:
- Data integration: Developing a unified customer view by connecting disparate data sources.
- Cultural shift: Embracing AI and prioritising value-driven outcomes over outputs.
- Intelligence and trust: Using data responsibly while building trust through transparency and security.
- Actionable insights: Engaging stakeholders with data-backed insights for meaningful interactions.
The study highlights the role of holistic identity management in enabling businesses to achieve these goals. Affinidiโs framework offers solutions for secure onboarding, consent management, and data integration, helping organisations meet stringent privacy regulations while enhancing customer trust.
Tools for transformation
Affinidiโs solutions empower businesses to unify customer data, break down silos, and leverage insights for hyper-personalised services. By adopting a privacy-first approach, companies can protect sensitive information while fostering long-term customer loyalty. Features like identity verification, consent management, and secure communication ensure compliance with regional regulations while enabling a seamless customer experience.
Glenn Gore, CEO of Affinidi, emphasised the importance of data utilisation: โTurning X-O will be pivotal for businesses to stay competitive in todayโs 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.โ
The findings underline the urgency for businesses to evolve, as only a small fraction are fully equipped for the X-O journey. By prioritising personalisation alongside data privacy, organisations can enhance customer experiences, drive growth, and maintain a competitive edge in an increasingly demanding market.
