What is Hyper-Personalization? Benefits, Framework, and Examples

  • Neelam Tyagi
  • Apr 28, 2020
  • Big Data
  • Business Analytics
What is Hyper-Personalization? Benefits, Framework, and Examples title banner

Assume a scenario of a meeting with someone many times

 

  1. Imagine that an individual recognizes your name, your interests and many other things you have explained in last conversations,

  2. Now imagine that an individual forgets your name and interests every time when he meets you and inquires the same questions while ignoring your prior conversation completely.  

 

Now correlate both scenarios, the first approach leaves you to feel gratified and cordial for the individual where a second way will clinch you to avoid that person completely. The same agenda is applicable to hyper-personalization, yes you heard correctly. 

 

One of the fundamental pillars of any business or brand is consumers, how they review any brand, whether they purchase products or services or not, totally depends on how any business would engage itself with consumers. Those who give imperative hyper-personalization experience will gain an excessive share of customers related to those who don’t.

 

Today, the center of attraction is hyper-personalization. In accordance with this blog, we will acquire knowledge about the complete cycle of personalization experience.

 

Introduction

 

Hyper-personalization is one of the most marketing buzzes in the spotlight, consumers are highly likely to do business with a company if it delivers sufficiently well-focused, purposeful, and personalized experiences.  

 

Conventional personalized marketing adopts primary user data and makes itself limited to easy strategies like addressing users with their first name in the subject line, location, purchasing history whereas hyper-personalization is a step ahead by implementing real-time data in order to give more connected communication with users. For that, It adopts data fixated on user browsing, buying, and behavior to know what the user wants or needs.   

 

Those who leverage data to offer personal experience are victorious with hyper-personalization that is greatly accounted for as a milestone for leading. It addresses the fact that each one is different, their choice and preference might differ, how they think, behave, and act, what they like, and dislike. 

 

Everything we will learn, so let’s move to our next section.

 

Discussing Hyper-personalization

 

“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better” - Jeff Bezos, CEO, Amazon

 

Hyper-personalization is an advanced step of personalized marketing where it leverages artificial intelligence and real-time big data in order to deliver more compatible ease, items, and service information to each customer. (You can glance at a blog “How Instagram uses AI and Big Data”) 

 

Hyper-personalization implements all kinds of customer data that includes profile and demographic information, browsing patterns data, geographical region, purchasing, and real-time data over numerous means and associations in order to draw inferences and tailor marketing content, items, assistance and services to match desires and requirements of every customer.


The image describes the definition of hyper-personalization that gives perfectly suitable real-time solutions.

Image Source: Capgemini


 

Benefits of Hyper-personalization

 

  1. It throws out the obstacles in the sales channel that can cause complications in the shopping experience of customers. It also decreases the exertion of customers to get what they need.    

 

  1. It hinders customers from being devastated with a large collection as most of the customers buy items from the rival company when they feel overburden by item selection. In that case, hyper-personalization may forbid customers from overburden by presenting items based on item recommendation algorithms that are applicable to customers.    

 

  1. For sure, it is an ultimate path for any brand to promptly attract and sustain the attention of customers by recognizing their interests, requirements, and save their time by providing the best solutions.  

 

 

Hyper-personalized Framework

 

In order to make a favorable framework, one can approach an analytics-driven strategy to acknowledge data over traditional methods that rely on tactics to data.

 

Designing a blueprint that provides noteworthy customer experiences continuously is comprised of four steps;

 

1. Data collection

 

The first and most crucial part of creating a hyper-personalized is identifying the audience, it depends on how a company figures out who are the primary customers and understand each customer distinctly.  

Identifying the correct audience depicts holding access to appropriate data, it becomes beneficial for businesses that aid a wide range of audience as it decreases the requirement of each group.

 

2. Customer segmentation

 

The second step is towards the process of customer segmentation, i.e. how a company deploys data and expertise to scale the personalization process. 

 

A broad audience is segmented into smaller subgroups on the basis of demographics, spending, location, contentment, and past interactions. A brand now can express relevant communication prepared for each group in order to improve customer engagement and brand adherence.


An image tells how a company or a brand analyzes data for customer segmentation.

A glimpse of data analysis for hyper-personalization


3. Targeted exploration and measurement

 

After the customers are segmented and their corresponding requirements are recognized, one can set the exploration of the target, i.e. the communication facets of the framework. 

 

The imperative factors of engaging with the audience are timing and medium. Getting both in control will effectively augment the tendency of customer conversion.

 

4. Analysis

 

Once a company conducts a significant campaign, the last phase is implementing calculation and examining to measure the success of the campaign. Figure out to which campaign array customers react well and its connection to the revenue of the business. Analyzing these exquisite detail and simulating them in the next campaigns yield sustainable outcomes.

 

 

Brands are using Hyper-personalization...How?

 

Top brands like Amazon, Spotify & Starbucks have reached the step of predictive personalization, where Artificial Intelligence and Machine Learning decipher a complete host of factors to privilege their recommendation engine. By and large, most businesses that are playing with personalization normally don’t deal beyond segmentation. (taken from)


This diagram shows a personalization maturity curve that can aid you to figure out where you are and acquire consequent steps.

Image credit: Feldman Creative 


To know more about Personalization Maturity Curve, please click, Let’s discover how such brands do it;

 

Amazon

 

  1. Amazon’s conversions are operated by their recommendation engine as they make different, hyper-personalized experiences for every user. 

 

  1. Generally, personalized emails include the person’s name but Amazone has access to huge amounts of data that covers the full name, search query, time spent on average in searching, previous purchasing history, the average spending amount, brands fondness, categories browsing, etc.

 

  1. It implements a recommendation engine algorithm, known as ‘item-to-item collaborative filtering’, that proposes items on the basis of the data points like past purchasing data, items in the shopping cart, items liked, rated and reviewed and similar items liked and bought by other users.      

 

  1. Amazon uses all the accessible information to create user-profiles and make unique contextual email promoting recommended products to users

 

Starbucks

 

  1. Starbucks boosts up its personalization gaming with Artificial Intelligence, uses real-time data to deliver distinct hyper-personalized texts such as food/beverage offers to users. Each offer is exclusive to every user based on preferences and past activities on the app.

 

  1. It also fascinates support programs with personalized games on email and mobile, instructs mobile app users towards adjacent stores that take the mobile orders and payment options.

 

Spotify

 

  1. Spotify uses hyper-personalization as its marketing operation. It takes music selection individually, cross-inquire that with the choice of others who used to listen to the same songs and after that designs an extremely personalized playlist for the user.

 

  1. Spotify also exhibits the Live Concert feature that circulates emails of live events with their beloved artists with the preference of buying tickets. This is also personalized depending on personal music choices.

 

 

Conclusion

 

Hyper-personalization has taken conventional personalization many steps ahead. As customers’ expectations are growing with digital competence and means, personalization is expanding more to create the correct experience for each customer. 

 

By the coming years, all the brands will be adopting the technology, approaches, and planning that enable them to make the personalized experience blueprints and will achieve a sustainable cutthroat dominance across brands that don’t adopt. Never miss a single analytical update from Analytics Steps, Follow us on Facebook, Twitter, and LinkedIn.

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