Companies need to beware of the dark side of content personalization. While personalizing content is good because it provides each customer with individualized treatment, there is a fine line between individualized treatment and creepiness. Companies that step over the line and over-personalize their content risk turning customers off. If you over-personalize, customers may feel like you're invading their privacy.
Using the wrong data at the wrong time to personalize may end up alienating your customer or turning them off. One of the best examples of this was when Target sent booklets full of baby-related offers to a teenage girl. Her father was outraged that Target would send such offers to his daughter because, given she was so young, he thought there was no way she could possibly be pregnant. Unbeknownst to the father, his daughter actually was pregnant, which Target determined by tracking her purchase behavior. Each Target customer receives a specific ID number tied to their name or email address. Everything the customer buys, along with their demographic information, is tied to the number. Target then leverages this data to predict things about you. In this case, Target made a huge mistake by over-personalizing.
Defining the Line between Personal and Too Personal
Although Target's intention was to provide a genuinely personalized customer experience, they inadvertently crossed the "creepy" line and over-personalized, which backfired big time. When personalization becomes too personal, it crosses the line and becomes creepy. Data is valuable, and businesses should use it to their advantage but should also avoid making the customer ask herself "how do they know that about me?" When this happens, you know you've stepped over the line.
If you do cross the creepy line and alienate your customers, it may be difficult to connect with them again. This is why it is crucial that businesses treat customers with respect, and as individuals rather than targets. When the exchange of data is a value-add for them, customers are willing to share and are even glad to be tracked. Customers love personalization when it serves a purpose for them, which is why brands like Amazon and Netflix have seen such success when it comes to their personalization efforts. In fact, 74 percent of consumers think it is okay for companies to offer personalized coupons based on their purchase history,according to a recode.net article. However, in Target's case, they took coupon personalization one step too far and paid the price for it.
In order to avoid crossing the line, brands should be responsible with their data. Just because you have information about a customer doesn't mean you have to use it. Establish boundaries and use common sense to avoid invading customer privacy by over-personalizing around sensitive topics like pregnancy. Marketers need to use their judgement and put themselves in the customer's shoes. Data should work for your customers, not against them. Also, by being transparent and honest, customers will be more comfortable and may even share more about themselves.
Responsible Personalization
Well done personalization can drive conversions and create stronger customer relationships, but creepy personalization can cause the opposite to occur. When Target sent coupons based on the assumption that a teenage was pregnant, it resulted in mistrust, outrage, and a PR nightmare for the retailer. Companies looking to personalize their content and web experience need to be careful and responsible to avoid situations like this. Every company and customer is different, which is why companies also need to know their audience inside and out and adjust personalization techniques accordingly.