Behavioural insights into personalized services

Opening my banking app to see personalised budget tips or having my fitness app adjust to my progress shows just how great and useful personalisation can be. However, getting Taylor Swift recommended every day because I listened to ONE song isn't ideal -nothing against Taylor, but this kind of repetitive suggestion can lead to information fatigue, especially when it feels like she's everywhere!

When applied correctly, personalisation can be incredibly effective. We, behavioural scientists, have long claimed that people are more likely to respond positively when they feel they are being addressed as individuals and when their needs are empathized with. For instance, in a previous discussion on my blog, I explored how personalisation could better engage users in financial services. 

Personalisation uses historical data to tailor services to individual needs, making each interaction more relevant and engaging. However, as we increasingly rely on this technology, it's crucial to consider not just the benefits but also the potential issues it raises:

Transparency: Users often don't know how their data is being used. For example, if a shopping app uses my browsing history to make product suggestions, I should be clearly informed about this tracking and its purposes.

Privacy: Personalised services can re
quire sensitive information, such as health apps that monitor physical activity or dietary habits. It's crucial that this data is used only for the intended enhancements, not for unrelated marketing or profiling.

Relevance of personalisation: If I play a Taylor Swift song out of curiosity, that shouldn't lead to her dominating all my music recommendations. Personalisation should be based on recognised and consistent user behaviours, not isolated incidents.

Effectiveness: A close friend claims that her personalised nutrition plan worked well, although it cost a fortune. When I asked why, it all boiled down to the reduction of calories. Are personalised nutrition plans truly superior to a standard low-calorie diet? We need robust evidence to support the notion that personalisation offers a distinct advantage and to understand why.

When it comes to implementing personalisation, we must ask:

• Do users fully understand and control how their data is used?
• Is personalisation being applied because it genuinely enhances the service?
• What kind of data is being collected, and is it necessary for the service?

While personalisation can make services more useful and engaging, managing it responsibly is crucial to maintaining trust and achieving the outcomes we want. And, as a final plea, let's keep the Taylor Swift recommendations to a minimum, shall we? -looking at you Spotify!