The modern era is the era of new-age people for whom technology and digital lifestyle become the center of livelihood and existence. Organizations too, change their perspective from mass-profiling to a data-centric approach. Companies’ focus, these days, in framing and implementation of marketing strategy stands upon data and thus coins a new strategic term – Hyper-Personalization.
Hyper-Personalization is the real-time AI and Big Data-based strategy to create high customer experiences on a personalized level which helps organizations retain and acquire new customers.
For example, RoRo decides to purchase a branded pair of black shoes for which, he browses the same on an app, spends a few minutes, and leaves the idea of purchasing. RoRo’s purchasing behaviour analysis appears
- A discount-oriented shopper.
- X and Y brand shoppers based on previous purchases and searches.
- Price ranges between ₹X and ₹Y.
- Maximum purchases are done on weekends between 12-3 am.
- Push notification conversion is around 50%.
Now, RoRo receives push notifications on his mobile flashing X and Y brand’s shoes with discounts and above-analyzed price ranges, preferably on weekends between the same timeslots.
Thus, hyper-personalization is way ahead than Personalization which focuses on static data like name, email, purchase history, and other associated data.
Major players utilizing hyper-personalization are Amazon, Starbucks, Stitch Fix, Spotify, Netflix, and E-commerce and Internet based companies which use channels like e-mail, push-notification, In-app notification, to communicate with their customers.
Data’s role in hyper-personalization
Advance data management and data driven marketing motivate brands to realize hyper-personalization over one to one personalization which requires a lot of data about customers’ behaviour.
A Customer Data Platform (CDP) practices large information flows, data analysis, and its conversion into actionable insights that advise marketers to anticipate customer’s needs tactically.
Big Data takes the responsibility of understanding the customer, their traits, behaviour, personality, attitudes, geographical locations, and other associated factors that suggest marketers the influence of personalization in different channels, environments, and processes.
Hyper-personalization enhancing consumer satisfaction
Segmenting customers using user attributes, past purchasing data, behavioural attributes guides an organization in integrating data from different channels, online and offline using CDP. Marketers study these segments and create multiple micro-segments based on customer behaviour which focuses on customer satisfaction.
Hyper-personalization focuses on defining customers, their preferences, choices, purchasing patterns and habits, challenges, and issues, through which organizations comprehend their pain points while purchasing and, also the determining factors affecting their buying decision.
Advance targeting customer i.e. driving on one-to-one communication with customers helps the marketers realize that every customer is different and has different needs, demands, priority, and products and services expectations they choose to buy. Hyper-personalization promotes personalized communication and meaningful interactions with customers leading the way for customer loyalty.
Creating personalized customer experience, as modern-day customers use multiple digital devices like mobile, laptop, tablet, which allows organizations to gather sufficient information about the customer lifestyles and preferences. Utilizing this information hyper-personalization recreates personalized customer experience and proposes better customer satisfaction.
Hyper-personalization practicing organizations prioritize customer-first philosophy which means putting customer’s needs and preferences ahead of anything that ends up with customer satisfaction and build a healthy relationship between customer and organization.
Challenges with Hyper-personalization
One of the major challenges with hyper-personalization is gathering the relevant information fastly and segregating them based on customer personal experiences. CDP (Customer Data Platform) plays a pivotal role with the help of artificial intelligence and machine learning in tackling this challenge.
Another challenge is a large amount of data, consigned by customers to organization, security, and it’s compliance. Today customers are open to share their data like personal information and collectively it becomes a large amount of data creating difficulty for organizations in securing them.
The Bottom Line
Consumers are evolving, they are open to adopt new technologies, becoming more referral driven, ready to spend more if find something relevant, and better service oriented. Brands need to be more customer experience centric than to attention economy centric. Hyper-personalization stands out as a clear winner in providing personalized customer experience over traditional personalization. In this cut-throat competing world implementing hyper-personalization is no easy task but an early adopter can be a major step to get a head start.