Personalization & Customer Segmentation
Personalisation
Personalisation is the process of using data collected from a user's interactions with an electronic interface to improve the value of current and future interactions (Jackson 2007, 25).
It is an important part of Customer Relationship Management (CRM), which aims to personalise experiences to individual preferences.
This technique mimics social dynamics, making recommendations based on an understanding of the user's interests.
Collaborative filtering is a technology that is widely used to deliver personalised information by continuously adapting user profiles to align targeted material with individual preferences (Jackson 2007, 26).
Customer segmentation
One strategy for segmenting arts attenders involves categorizing them into three distinct groups.
The first group is termed "existing audience," consisting of individuals who regularly attend performances by a specific company.
The second group, termed "attenders elsewhere," includes those who are regular patrons of another arts organization.
The third segment, known as the "switchers," comprises individuals who display less loyalty to a single performing arts organization.
This group tends to seek intense aesthetic satisfaction and may switch between different arts organizations to fulfil their needs (Kolhede and Gomez-Arias 2017, 34).
Combining both
Personalization and customer segmentation may be employed together in a targeted marketing campaign, where customers are segmented into categories based on certain criteria and each segment received specific messages.
On the other hand, some scholars argue against traditional top-down segmentation methods, advocating instead for a bottom-up approach that aggregates individual demands.
They suggest that an integrated relationship marketing system, supported by a comprehensive client database, is better suited to achieve this goal (Shani and Chalasani 1992, 1).
