Hyper personalization takes personalized marketing to the next level where it leverages artificial intelligence (AI) and real-time data and more. Read further to know.
There's no doubt that along with the virus, the customer mindset too, has 'mutated' owing to the ongoing Covid-19 pandemic -
Take a look at the areas in which customers believe there'll be a permanent change with respect to their shopping habits:
All in all, it's safe to assume that users are viewing brands through a renewed lens today - one that's 'reflects' a digital- and mobile-first mindset and enables a hyper-personalized approach (more on this later).
What's interesting is that customers today expect brands to understand and anticipate their wants and needs. In fact, users are finding solace in the fact that brands are offering them hyper-personalized experiences.
This is indirectly helping customers to overcome feelings of loneliness and social isolation owing to the strict quarantine and social distancing norms. How so?
Basically, since brands are providing a hyper-personalized experience, it is giving users the impression that the brands truly understand them, leading to super-strong digital customer relationships.
Personalized customer care is the fabric of happier customer experiences in today's uncertain business landscape.
According to data by Accenture, customers are going to enter 2021 with the same buying sentiments and carry forward new purchasing habits formed during the crisis.
Naturally, this is bound to permanently change the way people live, shop, and work. Before we jump into the hyper-personalization tools and tips, let's understand what it means.
Key takeaway: Hyper-personalization is a more evolved form of personalization as it makes use of futuristic technologies to gather real-time customer data and provide a superior, more targeted, and customized user experience, content, product, and service information to each and every user.
A staggering 86% of marketing professionals consider AI-powered hyper-personalization strategies to be effective, and 31% believe it to be ready for driving significant positive changes.
Hyper-personalization poses three-fold benefits for customers as well as the business, according to a recent survey by Deloitte:
1. Maximizes revenues by driving:
2. Lowers costs due to:
3. Elevates the customer experience by:
Around 90% of customers find personalized advertising appealing.
We've talked about the benefits of using hyper-personalization. It's time we understood how hyper-personalization AI plays a vital role in channeling personalized ads, feed, and product suggestions. Typically, AI hyper-personalization makes use of the following three strategies to utilize user data effectively and profitably:
Key takeaway: In today’s competitive marketplace, the need of the hour is to deliver a hyper-personalized data-driven and technology-powered marketing strategy, which makes use of real-time data, advanced analytics, and AI technology throughout the buyer journey. These tools can sift through mountains worth of data and extract actionable user insights, allowing hyper-personalization to become the 'new normal.'
In this section, let's look at how real-life brands are using hyper-personalization to win over customers and enhance customer satisfaction levels.
Strategy Used: Digital Badges
If you're into the business of offering any kind of recognition - authentication, awards, or verification services - you should leverage the benefits of digital badges:
The use of digital badges boosted sales and downloads for an online training site by 64%.
Key takeaway: Digital badges can help make an excellent first impression with your customers and establish authority.
Technology Used: Co-browsing
Dufresne, being a furniture store, used the co-browsing feature to bridge the gap between the online and in-store customer experience. In terms of the useful features leveraged, sales agents can highlight features, guide customers on important issues such as payments, and draw attention to critical information, such as returns policies, terms and conditions, and furniture measurements:
Plus, this tool allowed the brand to troubleshoot with customers virtually and stay in touch with them both before and post-purchase. As you can imagine, this helped elevate their customer experience and leave their users happy and satisfied.
Key takeaway: Brands such as Dufresne are going above-and-beyond to provide 24x7 virtual support to users by using intuitive features such as co-browsing- an invaluable asset in the times of a global pandemic. The idea is to extend a hyper-personalized support experience instead of a dull and unresponsive support system that can leave your users running in the other direction.
A staggering 75% of Netflix's site activity is driven by the personalization engine.
Technology Used: AI-Powered Email And Push Notifications
Netflix' personalization engine starts working its charm right from the home page (Look at the "Because you watched Narcos" and "Top Picks for Joshua" sections):
The AI-driven engine takes into account the user's viewing history and streaming habits to predict and recommend hyper-personalized content:
By integrating real-time behavioral attributes (think: viewing history, ratings, times, preferred device, duration, etc.), movie information (read: titles, genres, categories, etc.), and shared user preference and tastes with predictive learning, it is able to offer unique recommendations to 182 million users and boost customer loyalty!
Key takeaway: Data by Deloitte claims that Netflix’s recommendation engine works. Around 80% of users end up accepting the recommendations provided, with the remaining 20% searching for content.
Strategy Used: Email
Amazon's highly contextualized emails - complete with personalized product recommendations - is the stuff of legends. The brand makes use of a recommendation engine algorithm called ‘item-to-item collaborative filtering’ that allows it to suggest relevant products to users based on a variety of factors such as:
Key takeaway: As per research by Deloitte, Amazon's product recommendation engine contributes to 35% conversions. By gathering critical user data in real-time, the brand is able to create an accurate 'user profile' and deliver one-on-one hyper-personalized emails.
Technology Used: Real-Time Data Analysis
When it comes to fitness, a personalized training plan can turn out to be the game-changer your customer needs to accomplish their fitness goals:
Notice how the brand asks the user personal questions in order to collect personal data and offer a customized and relevant fitness plan that matches with the user's goals:
The brand uses AI-led real-time tracking to customize their users’ fitness activities and engage in fitness programs. That's not all. It also offers real-time updates about the user's progress and actively asks for feedback making the experience engaging and interactive:
Key takeaway: This virtual app 'gets through to the user,' thanks to its ability to offer real-time insights into the customer's progress and performance, in addition to rewarding them for achieving key milestones. More importantly, it targets each customer differently, making the service hyper-personalized. This keeps the users motivated and engaged with the brand, eventually turning them into brand loyalists. Ultimately, this leads to positive word of mouth publicity for the brand and boosts conversion rates.
Pandemic or no pandemic, the time for a "one-size-fits-all" marketing strategy is done. That said, there's a thin line between delighting users with hyper-personalized experiences and annoying them with a constant bombardment of creepy messages that can leave your brand looking more like a 'virtual stalker.' To wrap up, in order to enable a hyper-personalized experience, make sure to:
Which of these hyper-personalization strategies have left you feeling motivated? Share your thoughts in the comments section, and let's get the discussion going.
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