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Maximizing Customer Loyalty with Personalization: New Normal for Startups in the Post-Pandemic Era

The uncertainty of the pandemic has brought startups to transform their digitalization strategy as the top priority. The changes in customer behavior during the pandemic have resulted in demand for a more personalized customer experience and discontinued engaging with companies that could not satisfy their needs.

Notably, customers demand brands to give a superior digital experience. They want a friendly user interface and offers that specifically cater to their needs. These demands will get stronger and startups should anticipate this trend in 2021 and the upcoming years ahead.

By offering personalized products or services, it could increase a company’s revenue up to 15 % or more and consumers are willing to share their data and pay higher prices to obtain a more personalized experience. In addition, Forbes has also mentioned 80% of consumers have higher purchase intention from a company that offers tailored experiences. Thus, in order to stay on top during this pandemic and competitive situation, personalization holds power for startups to gain customer retention.

Benefit of Personalization

There are plenty of benefits that can be obtained from personalization, which gives a mutual advantage for consumers and companies. Thanks to technological advancement, personalization has become possible. CMO adobe surveys claim that consumers are annoyed when they are served with generic content and this may lead them to stop making purchases. Hence, creating personalized product recommendations and targeted content will deliver a better customer experience and trigger more purchases.

Another important benefit of personalization is it improves customer loyalty which is every company's main goal. Tailored and extraordinary experiences will leave a memorable impression on customers and make them feel valued as individuals. Thus, data-driven personalization strategies will lead to higher customer loyalty and become the spotlight in the crowded digital world.

Personalization in Numerous Sectors

Startups in multiple sectors are competing to do personalization. However, there are some companies that are struggling to implement personalization strategies. Based on Yieldify personalization report stated that 37% of the business faced a lack of expertise as their biggest challenge of personalization.

Let’s take L’oreal as an example for personalization. L’oreal, an over a century-old brand, has launched an innovative personalization product named Perso. It is the world’s first AI-powered beauty device that will personalize the user's beauty routine and provide skincare products recommendations.

Perso will be able to evaluate skin conditions and assess environmental factors. Then, they will create the formulation based on the data collected. Perso also will inform the latest looks and beauty trends that match with the user's taste.

In the domestic landscape, BASE skincare and Nusantics are examples of beauty tech startups that offer personalized skin services. The rise of beauty influencers who advocate different types of skin problems has caused a growing demand for personalized skincare products. In BASE skincare, users need to undergo BASE Skin Test where machine learning will evaluate the user's skincare needs. Then, users could purchase their personalised skincare products based on assessment.

Nusantics offer a different approach as users will do microbiome skin tests to check the composition of microorganisms on the skin. From the test result, product recommendations are given that match the user's skin condition.

Skyrocket Personalization in Fashion Sector

Personalization hype has also hit the fashion industry. Yuna & Co utilise AI to analyze user fashion preferences and provide style recommendations based on the preferences. Yuna & Co are claimed to be the first fashion matchmaking apps in Indonesia that aim to help users to create personalized styles who face confusion and time constraints in deciding a personal style.

Path to Product Personalization: 3D Printing

3D printing is another aspect that accelerates personalized product development and disrupts the manufacturing process.

Imajin, Plug and Play Batch 8th participant, is appointed as Manufacturing Hub Indonesia by the Ministry of Industry. This platform becomes the marketplace that connects every need of 3D Printing. 3D Designers are able to showcase their work on this platform and continue the production process through Imajin 3D printing partner.

Personalization is essential for any business during this COVID situation. Backed by today’s digital environment and rapid technological advancement, personalization is increasingly sophisticated and even plays an important role in enhancing customer experience. During this time, startups need to recognize that personalizing the digital experience to anticipate customer demands should be the top priority for their digital transformation. As a result, customer loyalty strengthens and companies gain a competitive advantage.



Jennifer Ronaldi is a Senior Associate from Plug and Play Indonesia.

At Plug and Play’s GK Plug and Play program, we match large corporations with top-tier startups that are changing the world as we know it. Together, they’ll build the cities of the future. Join our platform today.


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