The question of whether to invest in a personalisation engine is a common one for Australian SMEs looking to improve customer retention. Simply put, these tools use data to show each customer content, offers, and experiences tailored to their individual needs and behaviours. While they sound complex, many affordable options are now available. So, should you take the plunge?

We believe the answer is increasingly ‘yes’, but with some important considerations. Historically, personalisation was the domain of large businesses with huge marketing budgets. Now, even smaller businesses can leverage the power of data to build stronger customer relationships. Here’s what you need to know:

• Retention is cheaper than acquisition: It consistently costs significantly less to keep an existing customer than to find a new one. Personalisation directly impacts retention by making customers feel valued and understood. A tailored experience demonstrates you’re paying attention to their preferences.
• Beyond just names in emails: True personalisation goes far beyond simply addressing customers by name. It’s about recommending products they’re likely to buy, offering relevant discounts, and adjusting website content based on their browsing history. Think about a customer repeatedly viewing camping gear – a personalisation engine can automatically show them related offers or articles.
• Data is key, but start small: You’ll need data to fuel the engine. This includes purchase history, website activity, email engagement, and potentially demographic information. Don’t feel you need everything at once. Start by connecting your e-commerce platform and email marketing system. As you gather more data, you can refine your personalisation efforts.
• Segment before you personalise: Before jumping into individual-level personalisation, focus on segmenting your audience. Group customers based on shared characteristics (e.g., location, purchase frequency, product preferences). This allows you to deliver targeted messages to broader groups, which is a simpler and more effective starting point.

Investing in a personalisation engine isn’t about complex technology; it’s about building stronger customer relationships. By delivering relevant experiences, you’ll increase customer loyalty, drive repeat purchases, and ultimately, improve your bottom line. We recommend starting with a free trial of a user-friendly platform and focusing on a single, high-impact personalisation tactic – like product recommendations – to demonstrate value quickly. From there, you can expand your efforts as your data and confidence grow.