The future of marketing lies in hyper-personalisation and real-time data

At the e4m Pitch BFSI Summit 2024, a distinguished panel of marketing experts examined the evolving dynamics of consumer behaviour in the digital era and how these shifts shape targeted marketing strategies. The discussion covered various facets, from the role of feedback mechanisms in developing resonant campaigns to the use of big data and analytics to gain actionable insights into consumer preferences and pain points.

The panel featured insights from Prasad Pimple, Executive Vice President & Head of Digital Business Unit at Kotak Life; Akhil Almeida, Head of Marketing at Bandhan Life Insurance; Akshat Singhal, Head of Dangal Play; Sarvesh Bagla, CEO of Techmagnate; and Geetanjali Chugh Kothari, CMO of Future Generali India Life Insurance. The session was chaired by Manas Gulati, Co-Founder and CEO of ARM Worldwide.

Gulati set the stage for the discussion by highlighting the pervasive role of hyper personalisation in today's marketing landscape. “I was conversing with someone who mentioned that they first received a message from HDFC near their birthday and then another from one of their relatives,” he shared. “This is a testament to how much hyper personalisation we experience every day.”

He then asked the panellists: “How well, in today's time and age, is data analytics being used, especially in the BFSI segment? And how do you utilise it for your brands, and at what point in the journey do you employ it?”

Pimple emphasised the inseparable link between data, technology, and marketing in today's world. “When we talk about marketing today, two things that cannot be separated are data and technology. These are now integrated with every marketing activity,” he stated.

He further illustrated how this integration is shaping marketing practices: “The entire search engine marketing (SEM) strategy has become data-centric and automated. We no longer optimise based on cost per lead, cost per click, or TCPA. Instead, we rely on automated engines that use data to perform these activities.” This, he noted, reflects the kind of transformation already taking place in the sector.

Pimple also highlighted the importance of using data to understand consumers better, particularly in the life insurance segment, where direct data is limited compared to banks. “For life insurance, we often rely on third-party data that provides insights into consumer behaviour and preferences," he explained. "Today, data goes beyond basic demographics—it includes details such as consumer transactions, average income levels, and more. This information is crucial for performance marketing campaigns to target consumers effectively and generate quality leads.”

Agreeing with Pimple, Almeida observed a recent shift in focus towards the volume of data and the insights it provides rather than who is interpreting it. “Many of the decisions are being driven by those who understand data well, such as data scientists or statisticians, but who may not be trained in consumer insights. That's a very different skill set,” he added.

Almeida pointed out that larger players, despite having access to substantial first-party data, often fail to anticipate shifts in consumer preferences. “The bigger challenge for brands, especially within BFSI, is how to use that intelligence to connect with consumers in a more compelling way,” he said.

"Algorithms are phenomenal; they help you make decisions quickly," Almeida added, "but the challenge is that few people understand what goes into the algorithm, and trusting them blindly can be limiting." He stressed the importance of combining human intelligence with data-driven insights, advising marketers to engage directly with customers.

Next, Kothari discussed the evolution and impact of hyper-personalisation in marketing. “Hyper-personalisation has existed for a long time,” she said. “In the past, we used the means available to us at that time to its maximum. For instance, in the FMCG days of the 80s and 90s, ads were personalised by language—like seeing an ad in Tamil in a Tamil paper.”

She highlighted how advancements in technology and data have significantly enhanced personalisation capabilities. “Now, with generative AI and other technologies, I can target a consumer in the language they speak and tailor messages based on what they already have,” Kothari explained. “For example, in life insurance, hyper-personalisation allows us to offer additional coverage relevant to an existing customer, rather than just a generic product.”

Singhal took the session forward by highlighting the central role of data personalisation at Dangal Play. “For us, content and marketing are the two most important aspects of the business,” he said. “Data personalisation is applied everywhere.”

“We’ve created around 40 cohorts of users based on their genre preferences—some watch only TV shows, others only movies. From notifications to email marketing, even the first show you see on the carousel differs for each cohort. Data personalisation is crucial,” he added.

Singhal also noted how targeted marketing is tailored to different audiences. “We show different creatives based on the city,” he explained. “Some cities will see one set of creatives, while others will see another. This approach ensures that our marketing is relevant and effective.”

Marketers now extract vast amounts of keyword data, tracking search volumes over time to gain insights into consumer behaviour.

Bagla exemplified, “For the personal loan industry, we track around 9.8 million searches monthly. This has grown significantly, with searches evolving from general queries to more specific ones like personal loans for weddings or medical emergencies. These have become distinct products with substantial search volumes.”

“By analysing these trends, we advised clients to create specific product pages for these queries. This approach, driven by data, has proven essential in aligning web content with evolving consumer needs.”

Next, the critical issue of data security was addressed by Almeida. “In our industries, data is collected with explicit consent from customers, used for specific purposes, and subject to stringent regulatory compliance,” he said. “Every message that reaches a customer undergoes multiple levels of checking to ensure it meets regulatory standards.”

He highlighted a broader concern: “Despite our rigorous measures, a lot of data is unknowingly shared by consumers. For example, social engineering fraud exploits this by using seemingly benign interactions to gather information.” Almeida noted that while institutions adhere to strict regulations, there’s a need for greater consumer education about how data is used and shared.

“Consumers often overlook the details in consent agreements when signing up for apps,” he added. “Even if we ensure data security, gaps often occur in personal interactions where individuals can be exploited.”

Pimple added to the discussion on data security, emphasising the importance of transparency. “Consumers need to understand why we’re collecting their data,” he said. “As a responsible brand, we should only collect the necessary data.” He shared how his organisation has implemented clear explanations for each data field in their proposal forms. “For every piece of information we request, like a PAN number, we provide a tooltip explaining its use,” Pimple explained. “This transparency reassures consumers about the purpose of their data and enhances trust.”

He also highlighted advancements in data verification. “We use integrations to verify data passively, such as checking PAN numbers against official records,” Pimple noted. “Educating consumers about these secure methods is crucial. As new systems like ABHA and BIMA SUGAM come into play, it’s essential to invest in consumer education to explain how their data is safely integrated and used across platforms.”

Old data security methods are becoming obsolete, and cyber threats are rising, Kothari shared, referencing last month’s Microsoft outage.

She noted, “There are many points of interaction between core systems and the cloud, and despite efforts, data leaks can still occur,” stressing the need for continuous learning and investment in security. “Speeding up innovation requires us to also focus on security. One serious breach can disrupt operations, so investing in robust security is essential.”

Singhal added to the discussion by noting that consumers are increasingly cautious about sharing their data. “Three years ago, users would click 'Allow' for everything,” he said. “Now, they often click 'Don’t Allow,' even for notifications.”

He emphasised the importance of following GDPR guidelines for data processing and storage. “Every company should have a data officer to ensure data protection,” Singhal added.

Gulati directed the last question of the session towards Bagla, to which Bagla addressed the future of consumer insights in marketing, starting with the challenges of big data. "On the SEO side, we're dealing with vast amounts of data," he said. "Tracking thousands of keywords and daily rankings has led us to adopt AI and ML to manage this effectively. We now use AI to bucket keywords quickly and identify content topics."

He noted that the volume of search data continues to grow, with significant increases in search activity outside major cities. "For example, 49% of lending search volumes come from outside the top 15 cities. Similarly, 65% of investment-related searches come from these areas. The app ecosystem is also expanding rapidly, with millions of stock trading and personal loan apps downloaded annually."

Regarding organisational changes, Bagla suggested that brands must adapt their structures to handle these advancements. "As an agency, we can provide the data and insights, but how organisations evolve around this data is up to them," he concluded.