Close your eyes and recall the last time you received a personalised experience and how you felt as a result. Perhaps it was a personalised exercise at the gym, or the convenience of having your car automatically adjust the seat to your preferences as you slide in for a spin, or the barista who begins creating your speciality drink as soon as you step in the door.
A personalised experience fosters goodwill, develops loyalty, and makes you happy.
Ascend2 realised that customization was an issue that needed to be covered when we designed our research schedule. Not just simple personalisation, such as inserting a prospect’s first name in an email, but hyper-personalization.
What is hyper-personalization?
Hyper-personalization uses artificial intelligence (AI) and real-time data to provide clients with the most appropriate suggestions, and experiences depending on their location, time, date, and even conduct. This strategy takes personalised marketing a step further by providing a high level of relevance in an automated manner.
Hyper-personalisation vs. personalization
As we know it, personalization is based on static information – demographics or transactional data such as the customer’s name, gender, age, occupation, and purchase history. A promotional email featuring products similar to a customer’s prior purchase is one example.
Hyper-personalization takes it a step further by interacting with clients in real-time, providing them with unique, relevant, and contextual suggestions or experiences based on their location, time, or behaviour.
This is accomplished through evaluating data acquired by AI, machine learning, telematics, and IoT-enabled devices to obtain insight into customers.
Furthermore, you can estimate what clients might want based on the data you have. With these information, a corporation may make more informed decisions by offering the most relevant products and services.
How Hyper-personalization can Work
When brands have a solid grasp of their customers, hyper-personalization is most effective. As an act of product targeting, a company can use hyper-personalization techniques to discover a consumer in its database and offer contextualised communications at the ideal time and location.
As an example, suppose a consumer is seeking for a specific pair of shoes but just browses online during a specific time of day while on a break without purchasing. A firm equipped with hyper-personalization apps can deploy algorithms to follow and analyse the data provided by the shopper via cookie or other ways, and then adapt a campaign to send a push message pitching a discount tailored to that individual shopper.
Hyper-Personalization in Retail
Personalization entails more than simply calling a customer by their first name. As a retailer, you must consider new ways to personalise the shopping experience. Consider the Lively experience store in New York. You are given a beverage as soon as you enter the store, and a salesman takes your measurements and assists you with your purchasing. The adventure isn’t over yet. The store’s ambiance is intimate, with plants and lounge couches that conjure up images of a clubhouse. It’s not only brick-and-mortar stores that have nailed personalisation.
Sephora has perfected its in-store and online consumer experience initiatives. Customers use the Sephora app to schedule a consultation at the local location. They can also use the app to look for the things they digitally sampled to see whether they are still available in the store. They have a fantastic loyalty programme that has resulted in more than 25 million members! It exemplifies how you may connect your offline and online channels to provide a unified experience for your clients. Read more; Can Technology Eliminate Poverty
Benefits of hyper-personalization in Retail
- Increased revenue and conversions: Personalization allows you to target your clients with the correct message and experience. This raises the likelihood of conversion and, as a result, enhances your revenue. According to the Boston Consulting Group’s (BCG) Personalisation Maturity Index, retailers’ sophisticated personalization capabilities typically resulted in a 25% boost in revenue. If the experience was personalised, a stunning 110 percent of customers stated they were more likely to add more goods to their cart.
- Customer lifetime value improves: Deep-level personalisation occurs throughout the customer lifecycle. You can tailor your communication and experience from the time the customer is onboarded until the time they check out and even after that. Ensure that all of your channels are well integrated and that the customer experience and communication are consistent.
- Net promoter scores increase: The BCG’s survey showed that customers who experienced a high level of personalization scored the retailer 20% higher on Net Promoter Score (NPS) than those who experienced a low level of personalization. As you may be aware, the North Star metric for measuring customer loyalty is NPS. A high NPS score suggests that the consumer is pleased with the service and will most likely recommend it to others.
Examples of Hyper-personalisation
This has resulted in a slightly more sophisticated ‘hyper-personalisation.’ Whereas traditional personalization just conveys that some customising is being done, the use of algorithms, machine learning, and other advanced kinds of data analysis is seen as the next level.
To demonstrate hyper-personalisation and give a sense of the spectrum of possibilities, below we’ve looked at companies that excel at predicting and addressing their consumers’ requirements.
1. Stitch Fix Personalized Clothing Styles
Stitch Fix is an online retail business that connects customers with personal stylists who help them select clothing that suits their unique style preferences. Customers are polled to identify their style and preferences, and then a stylist selects five things for them. The products are then dispatched to the buyer, who can try them all out and only pay for the ones they like.
Stitch Fix highlights the need for user feedback in order to make successful product recommendations and continue to learn what works and what doesn’t. Read also; Top Women in Technology Right Now
By developing a business strategy that asks customers for their preferences and offers the appropriate product for them, a company may gradually establish a hyper-personalized experience.
2. Naked Wines
Naked Wines is a wine-selling eCommerce site. The company uses a novel hyper-personalization strategy to boost revenue and customer retention.
Customer feedback is gathered in order to customise the wine tasting and purchasing experience. When you rate the wines you drink, Naked Wine uses the data to recommend additional wines that they believe you’ll appreciate.
The collected consumer data is loaded into the personalization engine, which displays better wine suggestions to users. Naked Wine also customises emails depending on customer feedback and purchase history. Product offers and promotions will be matched to your preferences and budget.
3. Amazon
Amazon has complete control over the ability of customers to interact with its website, thanks to its massive inventory and a variety of subscription choices. Amazon also provides each client with a personalised homepage based on their previous shopping history, preferences, wishlist, and cart. Predicting a customer’s desires makes it easier to find what they want and discover new products.
Amazon gathers this data through predictive analytics. To establish a good understanding of its customers, the organisation uses both historical and real-time data. The company then uses hyper-personalization marketing strategies to improve client experience and happiness.
Importance of hyper-personalisation
- It removes obstacles in the sales channel that can complicate the purchasing experience of clients. It also reduces the effort required by clients to obtain what they require.
- It prevents clients from being dissatisfied with a large collection, as most customers buy things from the competitor company when they feel overburdened by item selection. In this situation, hyper-personalization may prevent clients from becoming overburdened by offering things based on item suggestion algorithms that are relevant to them.
- Without a doubt, it is the ideal way for any brand to quickly grab and retain customers’ attention by understanding their interests and needs and saving their time by giving the best answers.
