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1 This document contains both information and navigation buttons. To read information , use the Down Arrow from a form field. Connecting meaningfully in the new reality The COVID-19 pandemic has forced almost every business to change how they operate. For CMOs, strategy and communications have needed to pivot in real-time potentially with dramatically-reduced budgets, both to keep costs down in uncertain economic conditions, and to demonstrate sensitivity to what was going on in their customers' lives. In our new world, organizations are looking for ways to improve the customer experience, and evolve their marketing programs to be even more digital, targeted, precise, and personalized. Mass campaigns, and even personalized campaigns that group customers by persona or segment, are no longer hitting the mark. And, with cost-consciousness still top of mind, it's more important than ever to spend budgets wisely, optimizing your marketing approach to target customers with relevant and contextualized offers.

2 Responding to changing consumer perceptions and market conditions requires an ability to leverage customer data at the most granular level. As we slowly begin to emerge from the crisis, enabling hyper-personalization across e-commerce, marketing automation, and customer engagement platforms will be extremely important, allowing you to provide context to every interaction. A segment-of-one approach allows you to optimize who you target with key messages and offers through key channels, and also to understand when it may not be a good time to send an offer out. Customers expect to be treated as individuals, as human beings who are facing one of the most challenging periods of their lives. They want to deal with companies who understand who they are and what they're going through and who appreciate that their reality and needs are changing every single day. Adopting a hyper-personalized marketing strategy powered by data, analytics, and AI will give you the insights and capabilities to adapt to your customers' changing realities in real-time, which is what today's customers expect.

3 This crisis is bringing about sweeping changes to the business world, including how we market to customers. We encourage you to take the time now to consider how your company can accelerate its digital transformation to be better prepared as our reality continues to evolve. Bilal Jaffery Marketing & AI Practice Leader Omnia AI | Deloitte Connecting with meaning Hyper-personalizing the customer experience using data, analytics, and AI. 1. 2. 3. 4. 5. 6 Table of contents 1 Introduction 1. 2 What is hyper-personalization? 4. 3 Why does hyper-personalization matter? 14. 4 What does hyper-personalization mean to different sectors? 18. Financial institutions 18. Consumer and retail 20. Public sector 22. Health care 24. 5 Where to start? 26. 6 Conclusion 30. iii Connecting with meaning Connecting with meaning | Section title goes here | Introduction We live in 1. an era where 2. customers 3. expect us 4. 5. to understand 6. their wants and needs. 1. Connecting with meaning | Introduction Introduction 1.

4 2. 3. 4. We live in an era of connection and the consumer marketplace 5. is no exception. Businesses are expected to not just meet the 6. needs of customers, but anticipate and exceed them. Today's marketplace is constantly uctuating and its vital organizations adapt by harnessing the power of analytics and artificial intelligence (AI) to make the necessary changes to survive and thrive. Having a robust marketing strategy isn't enough anymore. As consumer expectations change, competition becomes more advanced, and data gets more detailed, chief marketing officers (CMOs) are under immense pressure to modernize their approach to marketing. This has added complexity to their roles and placed them at the heart of organizational success. What are the challenges for a modern-day CMO? Pivoting to a digital-first mindset, using AI to create stronger, more authentic interactions with customers, and effectively using technologies to capitalize on data for insights-driven results are just a few.

5 The solution? A hyper-personalized, AI-powered marketing strategy. 2. Connecting with meaning | Introduction THE CMO'S CHALLENGE. 1. Marketing leaders must recognize that providing a superior customer experience is not only expected, but a competitive advantage. Experience is critical to capture new 2. customers and retain existing ones in today's crowded digital landscape, while also 3. CONSUMERS'. maintaining or increasing share of wallet. Customer experience is becoming even more important given that increased globalization offers customers an abundance of choice. expectations Indeed, 97 percent of leaders agree that customer experience management is an 4. integral business strategy for creating loyal and long-lasting customer are changing 5. However, to meet and exceed evolving customer expectations, brands must use data +. and analytics to better understand their customers, and harness the power of AI to create authentic interactions and the hyper-personalized experience that customers 6.

6 Now expect. Traditional business models are becoming increasingly outdated. Companies are consistently challenged by new entrants to the market that offer lower price points COMPETITION or more innovative experiences. Companies like Amazon, Facebook, and Google are leading the charge through their use of rich customer databases and personalized is becoming recommendation solutions. Digital marketing is also becoming a crowded sector, more advanced leading to increased spending in hopes of reaching customers. When faced with such a +. keenly competitive landscape, AI-powered marketing offers the ability to make a more meaningful impression on your customers with the limited exposure they may have to a brand's message, allowing them to forge deeper bonds and excel in the marketplace. Historically, customer data was collected across outdated and disconnected systems, and limited to call centres and point-of-sale. However, increased digitization coupled with advanced data technologies allows organizations to use their proprietary DATA and third-party data to create detailed pictures of customers and gain a deeper understanding of their preferences and behaviours.

7 AI-powered marketing technology is increasingly can then be used to sift through vast amounts of information in real time, and make available insight-driven decisions on the types of interactions to have with each customer. Organizations must begin to effectively use available data and AI technology to accelerate results, and offer hyper-personalized experiences to attract and retain =. loyal customers. In order to excel in today's marketplace, organizations should adopt a hyper-personalized marketing strategy by exploring the ways data, advanced analytics, and AI technology can be embedded throughout the customer journey and generate new levels of industry-specific customer insights and action. 3. Connecting with meaning | What is hyper-personalization? 1. 2. 3. 4. 5. 6. As a CMO's focus becomes more customer-centric and data-driven, AI-powered hyper-personalization provides the appropriate solution. 4. Connecting with meaning | What is hyper-personalization? What is hyper-personalization?

8 1. 2. 3. 4. 5. Hyper-personalization is the most advanced way brands 6. can tailor their marketing to individual customers. It's done by creating custom and targeted experiences through the use of data, analytics, AI, and automation. Through hyper-personalization, companies can send highly contextualized communications to specific customers at the right place and time, and through the right channel. As digital marketing becomes more competitive, hyper- personalized marketing provides the opportunity for organizations to meaningfully engage customers, deepen existing relationships and build new ones, and improve the customer experience. Implementing this type of strategy not only increases customer satisfaction but also drives brand loyalty, willingness to spend, and overall marketing effectiveness. 5. Connecting with meaning | What is hyper-personalization? 1. 2 CMO goals 3. 4. 5. 6. Drive profit Innovate and optimize Improve experience Make data-driven decisions Drive business growth Employ new marketing Create and ensure a through re-imagined strategies and tools to consistent, personalized, Deliver concrete and platform and service drive growth and reduce and memorable brand understandable marketing design, plan for delivery of costs ( , lower customer experience across all metrics and analysis for top-line revenue and ROI, acquisition and retention media through a deeper data-driven decision-making lead the shift from cost costs through personalized understanding of customer and risk management.)

9 Centre to profit centre, and product targeting and needs and relevant integrate product/service campaigns). touch points. development with marketing and sales. Hyper-personalized marketing can help by: Maximizing revenue Reducing cost Elevating customer experience Data-driven content generation Reduced customer acquisition In-moment customer journeys Detailed product targeting and retention costs 24/7, personalized customer service Next-best-action/ Workflow automation Real-time customer segmentation recommendation engine Dynamic landing pages and websites Individualized or dynamic pricing 6. Connecting with meaning | What is hyper-personalization? This page has been intentionally left blank 1. 2. 3. 4. 5. 6. 7. Connecting with meaning | What is hyper-personalization? 1. 2 Hyper-personalization goes further than segmentation 3. 4 While segmentation creates customer groups Implementing this strategy not only increases based on shared likes, dislikes, and activities, hyper- customer satisfaction, but also drives brand 5 personalization drills down to minute differences loyalty, willingness to spend, and overall marketing which can be used to target customers' at the effectiveness.

10 Hyper-personalization can be achieved 6 individual level. Traditionally, organizations have used customer segmentation as part of their marketing in various degrees, ranging from recommendation engines to connecting online and offline sales strategy in attempt to ensure customers receive channels, and from predicting customer preferences relevant communications and offers, but struggle to to developing tailored products or pricing. achieve deeper levels of personalization through this tried-and-true method. This level of personalization can't be achieved through the implementation of a single business While increasing segmentation efforts appears to case. Rather, it is a holistic marketing strategy that be a good approach, it will not result in the best ROI fundamentally changes the way organizations or maximize program effectiveness. AI-powered interact with customers, and should be treated as hyper-personalization delivers optimal results by an evolving and maturing practice that's embedded allowing companies to tailor their marketing efforts throughout the customer journey and part of every at the individual level by using data gathered on that marketing campaign.