The Role of Hyper-Personalized Marketing in Building Customer Loyalty across Digital Platforms: The Mediating Role of Digital Customer Experience

Résumé fourni par la source

What follows raises an intriguing question regarding a complicated behavior: is personalized marketing by the organization enough to generate loyalty at the customer level, or does this loyalty rely on something in between — specifically on the actual customer experience of using the network? This study tests this question by focusing on the relationship of hyper-personalized marketing to customer loyalty on the network and the mediation role of digital customer experience in that relationship. Data from 420 users were collected through a five-point Likert questionnaire, where users have experience of e-commerce, digital banking, and social media platforms. Data were analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method in two stages: first, the measurement model was used for assessment, and second, PLS-SEM structural model was used, using bootstrapping with 5,000 samples. The concept of hyper-personalized marketing was seen to have a considerable amount of influence over digital customer experience (β = 0.578, p < .001), while the digital experience in turn was responsible for predicting customer loyalty (β = 0.389, p < .001). Besides, the effect of personalization remained effective in affecting the loyalty in a way that was determined after considering the experience part (β = 0.213, p < .001). Furthermore, mediation analysis proved that digital experience partially, though complementarily, acts as mediator for personalization towards loyalty (indirect effect = 0.225, 95% CI [0.163, 0.286]), meaning that around half of the effect of personalization occurs via the digital experience of the customer instead of directly. What we present in this model is instead not so much any one way of doing things, but rather the model itself: our contribution includes combining AI-powered hyper-personalization with digital customer experience in one coherent model tested in three different ways rather than just one, as is done in the majority of the present-day references on the topic. For practitioners, the significance lies in the idea of personalization technology and experience design not being the same thing. Allocating investments in one of the fields yet ignoring the other will result in numerous lost opportunities, as being able to use personalization technology effectively without attention being paid to designing the customer experience will still leave a significant part of the loyalty benefit on the table. Keywords: Hyper-personalized marketing; Digital customer experience; Customer loyalty; Digital platforms; PLS-SEM.

Ce résumé expose les affirmations des auteurs. BNTIC ne l’interprète pas comme une validation indépendante des résultats.