Tailored Communications: Going Beyond Personalization
Shawn Phillips 
December 5th, 2024
A personalized communication is not the same as a tailored communication—and the distinction is incredibly important.
Personalization leverages variable data to add familiarity to a message—for example, addressing someone by name ‘hello [first name], or mentioning their location or account number. While personalization is helpful, it doesn’t go far enough. A tailored communication, by contrast, focuses on achieving a specific business result. To create a tailored communication, you must begin with the intended outcome, identify the emotions needed to drive that outcome, and craft the message to target and elicit those emotions.
This blog highlights three tailored communication examples and why the outcomes matter—not only to your customers but to your business.
1. Overdraft Notices
When a bank sends an overdraft notice, the message is often very informational and harsh. It essentially says, “You spent too much, and now we’re charging you a penalty.” This approach can turn a negative situation into an even worse experience.
For example, a personalized notice is shown below. While factual, the message doesn’t generate goodwill, nor does it encourage customers to avoid future overdrafts:
Subject: Important Notice – Account Overdrawn
Mr. Phillips,
Your account is overdrawn by $50. A $35 fee has been assessed, bringing your total overdraft to $85. Please take immediate action to resolve this balance.
Instead, a more effective strategy is to acknowledge the frustration of the situation and offer practical resources, such as budgeting tips or tools to track and manage spending. A tailored message would be empathetic and solution-oriented:
Subject: We’re Here to Help – Overdraft Notice
Dear Mr. Phillips,
We understand unexpected expenses can lead to overdrafts. Your account is currently overdrawn by $50, with a $35 fee assessed. To help you manage your finances and avoid future overdrafts, consider these options:
- Balance Alerts: Get notified when your balance is low.
- Overdraft Protection: Link a savings account to cover overdrafts automatically.
- Mobile Banking Tools: Monitor your account in real-time.
Please bring your account to a positive balance as soon as possible. You can do so by depositing funds into your account or contacting us to discuss alternative payment options. We appreciate your understanding and cooperation. If you need assistance, we’re here to help.
This approach not only resolves the immediate issue but also helps to build trust and encourage proactive financial behavior in the future.
2. Investment Statements
Most people receive a monthly statement about their retirement accounts. For many, the statement is confusing and full of details that are hard to comprehend. The one number they notice: did their balance go up or down? Without context, this information can cause anxiety during market dips, as I experienced in 2020 and 2021. Some of my accounts had a financial advisor I could call; others just offered a generic customer service number.
When you think about it, what do financial institutions want us to do with the monthly statement they send us? Ideally, the desired outcome is for us to stay longer and invest more. To this end, a tailored communication can build confidence and goodwill, even during downturns, by offering advice on long-term market trends or suggesting actions related to portfolio rebalancing.
For example, if the customer’s balance increased:
Congratulations! Your portfolio grew by $3,500 last quarter—a testament to your smart investment choices. By increasing your monthly contributions by just $50 or $100, you could see significant growth over the next five years, accelerating your progress toward your long-term financial goals. Let’s work together to refine your investment strategy for maximum growth.
This message not only reinforces positive behavior but targets the emotions at play to support the outcome of further investing.
3. Auto Claim Communication
Did you know FNOL stands for “First Notice of Loss”? This is the first call a customer makes to report an incident to their insurance company. My niece recently hit a deer on her way back to school. While everyone was fine, James—her cute SUV—was not so lucky.
In this type of situation, the length of time it takes to report the incident, and the words used to engage the person reporting the loss, are critical to keeping costs low and customer satisfaction high. Is the person anxious about having a car to get to school tomorrow? Do they trust the insurance company will come through for them?
People who don’t trust their insurance company typically cost more per claim than those who do. They call more and are more likely to complain about the fixes performed—increasing the likelihood of work being redone. When the customer trusts their insurance company, however, they make fewer calls to support and the claim costs everyone less money.
When my niece received the response to her FNOL communication it was personalized, with her name and policy details. But, the communication was not tailored. Upon reading it, she felt overwhelmed and called her mom, unsure if she’d get the response right, or if her car would ever be fixed.
In this personalized example, the messaging might increases stress and uncertainty, and trigger a call to customer support:
Subject: Next Steps for Your Auto Claim
[Customer Name],
Please submit the following:
- Police report (if filed)
- Vehicle repair estimates
- Photos of damage
Your claims adjuster, [Adjuster Name], can be reached at [Phone Number].
In this tailored example, however, the messaging is likely to build trust and confidence:
Subject: We’re Here to Support You – Your Auto Claim
Dear [Customer Name],
We understand accidents can be stressful. Our goal is to make this process as smooth as possible. Please provide us with the following:
- Police report (if available)
- Repair estimates
- Photos of the damage
When received, your claims adjuster [Adjuster Name], will call and guide you through every step of the process. We’re committed to resolving your claim quickly and efficiently. Thank you for your patience and understanding.
A tailored communication ensures the customer feels supported during a stressful time. It explains exactly what they need to do and what they can expect—promoting trust and driving the desired outcomes.
Tailored Communication: The Key to Better Outcomes
A tailored communication is like a bespoke suit—it’s designed to fit perfectly and evoke the right emotions to drive the desired outcomes. While more complex than generic or personalized messages, tailored communications deliver far superior outcomes to your customers and your business.
Why is a CCM guy telling you how to write your communications? First, I’ve seen far too many communications that cause customers angst and lead to poor outcomes—all easily avoided. Second, I am not talking about manual communications, as today much of the above can now be data-driven to produce different content based on the situation.
Today, with modern tools, we can detect sentiment in incoming calls and emails and adjust communications based on the customers’ feelings. Coming soon are AI language models that will create communications at the right time to get the desired result.
If you’re excited about taking your communications to the next level, we’re here to help! Reach out to us, and let’s chat about your specific needs. We’re eager to help you craft a strategy that aligns perfectly with your unique goals and needs.
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Shawn Phillips
Shawn brings over 25 years of tech and customer experience expertise to his role as Product Manager for MHC NorthStar CCM. He is driven by a simple philosophy: great technology should make everyone’s day better—customers and employees alike. His practical, hands-on approach helps companies streamline how they talk to their clients, making every message count. Before joining MHC, Shawn was employed at Heart of the Customer, where he worked with Fortune 100 companies to improve how they connect with customers—everything from reducing pain points to enhancing key moments in the customer journey.
