Hello, this is Matsubara, CRM Evangelist.

The term "personalization" has long been used to describe the ideal approach to customer service.
However, the world that CRM 4.0 aims for actually goes even further than this personalization.

This time, we will carefully explain the differences between personalization and CRM 4.0.

table of contents

1. What is personalization?
2. The relationship between CRM 3.0 and personalization
3. The Limitations of Personalization
4. What CRM 4.0 aims to achieve next
5. The difference between personalization and one-on-one interaction.
6. Differences between the two, illustrated with specific examples.
7. How the differences between the two manifest themselves in different industries.
8. Why is it important to understand this difference?
9. This does not negate personalization.
10. Steps to transition from personalization to one-on-one
11. Practical Application with EMOROCO CRM Lite
12. Frequently Asked Questions (FAQ)
13. Summary

1. What is personalization?

Personalization refers to a method of delivering information and suggestions optimized for each individual customer based on their data (purchase history, browsing history, attribute information, etc.).

- Recommended products are displayed on the e-commerce site based on your past purchase history.
- Email newsletters will deliver content tailored to your browsing history.
- Ads are displayed according to individual interests.

These are all typical examples of personalization.
The very idea of ​​"tailoring to each individual" was a major step forward from uniform mass marketing.

2. The relationship between CRM 3.0 and personalization

BeforeHistory and Definition of CRMAs explained earlier, CRM 3.0 (Personalized CRM) is a generation that has developed with AI technology and personalization as its technological foundation.
In this era, CRM has had the major goal of analyzing customer data and delivering an optimized experience for each individual customer.

Personalization is a significant technological achievement that emerged during the evolution of CRM 3.0.
CRM4.0 does not negate these achievements, but rather aims to shift towards new ways of thinking.

3. The Limitations of Personalization

While personalization has yielded significant results, it also has the following limitations:

Personalization is a one-way system where companies analyze data and deliver "something optimized" based on their own judgment.
No matter how meticulously personalized it may be, as long as it is "something delivered by a company," the customer is placed in a somewhat passive position.
Excessive personalization can sometimes make customers feel uncomfortable, as if they are being watched.

In other words, personalization has the limitation of being a "one-way street of individualization" and not creating a two-way relationship itself.

4. What CRM 4.0 aims to achieve next

CRM 4.0 aims to shift from this one-way personalization to two-way "co-creation."
BeforeOne with One Marketing Practice GuideAs explained earlier, the idea is not for companies to "deliver" something optimized for customers, but rather to "build" relationships together with customers.

If personalization is about saying, "We've prepared this for you," then the "One with One" approach that CRM 4.0 aims for is about saying, "Let's create something together."
This difference is not merely a matter of wording, but represents a fundamental difference in the relationship between a company and its customers.

5. The difference between personalization and one-on-one interaction.

Let's compare and contrast the specific differences.

・PersonalizationBased on the data held by the company, we deliver proposals that the company deems optimal.
・One with One: Ask questions of the customer and, through dialogue, think together about the next step.

・Personalization: Use the results of behavioral data analysis only for internal company decision-making.
・One with One: Share the analysis results with the customer and use it as a starting point for a dialogue like, "Let's improve together."

・PersonalizationWhile providing a different experience for each customer, the design of that experience is unilaterally determined by the company.
・One with OneCustomer feedback is reflected in the design of the experience itself.

6. Differences between the two, illustrated with specific examples.

Let's look at an example using the same data, "customer's birthday," to see the difference.

Personalization approach
Based on birthday data, an email with a discount coupon will be automatically sent.
This is simply a situation where the system provided by the company is operating mechanically.

One with One approach
On their birthday, a staff member sends a direct message, initiating a conversation with questions like, "What kind of year do you think this will be?"
Alternatively, it could be an opportunity to work together to come up with a special proposal tailored to that person, based on past interactions.

Both methods utilize birthday data, but the former is a one-sided automated process, while the latter serves as a starting point for dialogue that deepens relationships.

7. How the differences between the two manifest themselves in different industries.

Depending on the industry, the differences between personalization and one-on-one approaches manifest themselves as follows:

・Retail tradeWhile personalization is limited to recommendations based on purchase history, One with One involves store staff listening to customer feedback and incorporating it into improvements to the product lineup.
・B2B SalesPersonalization automatically sends materials tailored to customer attributes, while One with One involves working together to organize the customer's challenges and collaboratively create proposals.
・Subscription servicePersonalization sends notifications based on usage patterns, while One with One engages in dialogue with customers about changes in usage patterns and incorporates those changes into improving the service itself.

In all industries, personalization is "data-driven optimization," while One with One is "co-creation based on dialogue"—these are common structural differences.

8. Why is it important to understand this difference?

If you fail to understand this difference and mistakenly equate "personalization" with "implementing CRM 4.0," the following problems will arise.

Even with the introduction of advanced personalization technology, customer relationships do not deepen.
- While a lot of effort is put into data analysis, actual dialogue and relationship building are neglected.
- Falling into self-satisfaction by believing that you are providing individualized service, you overlook the truly interactive experience that customers are looking for.

Personalization is merely a means to an end, not the goal in itself.
Adopting a CRM 4.0 perspective allows us to correctly position personalization as a tool for building reciprocal relationships.

9. This does not negate personalization.

It's important to understand that CRM 4.0 does not negate personalization.
Personalization is a crucial technological foundation for engaging with each individual customer.

The message that CRM 4.0 aims to convey is a progressive one: "Let's not stop at personalization, but aim to build reciprocal relationships beyond that."
It is only with a foundation of personalization that we can build deeper relationships through dialogue and co-creation.

10. Steps to transition from personalization to one-on-one

This article outlines specific steps for companies already implementing personalization to evolve into a "One with One" approach.

・Step 1Reflecting on how one-way current personalization has become:
・Step 2: Intentionally create opportunities to hear customer feedback after personalized suggestions.
・Step 3The feedback received will be used to improve actual products and services, and the results will be communicated to customers.
・Step 4: By introducing indicators such as emotional temperature and NPS, the quality of the dialogue itself can be visualized.
・Step 5: Establish these initiatives as part of the organizational culture.

These steps overlap with what we previously explained in the CRM 4.0 implementation guide .

11. Practical Application with EMOROCO CRM Lite

EMOROCO CRM Lite is built on a foundation of personalization and includes features to enable the creation of one-to-one, two-way relationships.

・Centralized management of customer dataIntegrated management of customer information, forming the foundation for personalized service.
・Emotional Temperature, Nurturing Score, NPS: An indicator that can be used not only for one-way data analysis, but also as a starting point for dialogue.
・Customer Portal: A two-way channel that receives feedback from customers, rather than just one-way information dissemination from companies.
・　A system to track the status of responses to customer feedback and to continue the dialogue.

Utilizing these features not merely as personalization tools, but as a foundation for building reciprocal relationships, is key to implementing CRM 4.0.

12. Frequently Asked Questions (FAQ)

Q. Is personalization an outdated concept?
No.
Personalization remains an important technological foundation.
CRM 4.0 doesn't negate the current state of affairs, but rather aims for further development.

Q. If I practice One with One, will personalization become unnecessary?
It will not become unnecessary.
Rather, the practice of "One with One" becomes more effective when it is based on a foundation of personalization.

Q. How can I distinguish between personalization and one-on-one sessions?
You can tell if a policy is effective by checking whether it actually incorporates customer feedback and opinions.
Without a mechanism for this to be reflected, personalization is likely to remain a one-way process.

Q. Can small and medium-sized enterprises (SMEs) implement the "One with One" approach?
Yes.
Even without advanced technology, prioritizing dialogue with customers and incorporating their feedback is the first step in practicing One with One.

Q. How long does it take to transition from personalization to a one-with-one approach?
It takes time for this to become ingrained in the organizational culture, but you can start by adopting a dialogue-oriented approach, beginning with interactions with a limited number of customers.

13. Summary

Personalization is a crucial technological achievement in delivering experiences tailored to each individual customer.
However, this remains merely a one-way optimization from the company's perspective towards the customer.
The "One with One" approach that CRM 4.0 aims for evolves this one-way relationship into a two-way relationship built together with the customer.
Rather than rejecting personalization, the essential message that CRM 4.0 aims to convey is to strive for dialogue and co-creation that lies beyond it.

EMOROCO CRM Lite costs ¥1,500 per user per month (minimum 3 users) and has no initial setup fee, with a 30-day free trial.https://www.emoroco.com/You can start from there.
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Related article

・The History and Definition of CRM — From CRM 1.0 to CRM 4.0
・One with One Marketing Practice Guide
・How to implement CRM4.0
・The Science of Relationship Assetization