Today, technology empowers brands to remember customer details like name, date of birth, and past purchases at scale, which leads to personalized customer experiences. It’s now common for brands to digitally greet us by name and recommend products based on our purchase history, gender, and geographical location.
In fact, hyper-personalized marketing is now the expected norm for an ambitious brand, most likely because the data from HubSpot proves that personalization works superbly well. According to HubSpot[i], 75% of customers agree that they are keen on buying from brands that offer personalized digital experiences. In fact, 97% of marketers witnessed a rise in business outcomes as a result of personalization[ii]. In an attempt to capitalize on this clearly lucrative marketing strategy, we’re now seeing modern marketers stepping up their game in the form of hyper-personalization automation.
In this blog post, we’ll talk about the what and the why of hyper-personalization and how you can automate it to create personalized and targeted experiences to send highly contextualized communications to the right person at the right time.
What is Hyper-Personalization and Its Various Components
The goal of hyper-personalization is to maximize the opportunities to tailor the content that fits your customers’ needs. It’s done by curating custom and targeted experiences by using data, analytics, AI, and automation. Using hyper-personalization, brands can send highly contextualized communications to specific customers at the right time. The backbone of hyper-personalized marketing consists of a few main components, each adding its own value to the entire enterprise. They are:
1. Raw Data
As businesses engage with customers at multiple touchpoints, the amount of data being generated has shot up exponentially. Big data presents an opportunity to understand customers’ preferences to serve them better. Businesses that can capitalize on the trend of converting data into valuable insights have a competitive edge in building hyper-relevant marketing campaigns.
2. Analytics, AI, & Automation
A robust combination of these three components can be a holy grail for hyper-personalization as they collectively enable it across multiple channels at scale. Data generated can be converted into valuable insights and used to improve the customer journey of an individual customer.
3. Personalized Offers
Most consumers are likely to take an offer that is personalized in a way that depicts their most recent interaction with the brand. For instance, Starbucks implemented AI to generate push messages and send recommendations and offers to recipients using live data. The system is able to create 400 thousand unique offers, each based on users’ purchase history, activities, and preferences.
Implementing Hyper-Personalization – The Right Way
While hyper-personalization has established itself as a strategy to meet several business outcomes, the implementation part can be a bit challenging, as they scale. Here’s how you can implement it in your marketing strategy efficiently:
1. Collect High-Quality Data
With the staggering amount of data available, businesses must be able to segregate and crystallize it to be relevant to meet hyper-personalization goals. By using an AI-powered automated customer engagement platform backed by actionable analytics, businesses can collect and use data to build targeted engagement strategies.
2. Segment Your Customers
Customer segmentation allows you to create a series of groups filled with your audience who share the same interests, motivations, location, brand interaction history, and demographics. When relevant data is used for segmentation, customers get access to an engaging journey facilitated easily by omnichannel engagement platforms.
3. Launch Targeted Campaigns
Customer segmentation enables brands to build hyper-personalized experiences at scale. The first step is to create relevant communication through the right channels. It can include push notifications, programmatic advertising, and recommendation engines, which lead to conversion through targeted campaigns.
Hyper-Personalization + Marketing Automation = A Delightful Customer Experience
Gartner predicts that by the end of 2024, the drive towards hyper-automation will lead businesses to adopt at least three out of the 20 process-agnostic types of software that enable hyper-automation. In fact, by 2024, businesses will lower operational costs by 30% by combining hyper-automation technologies with redesigned operational processes[iii]. However, hyper-personalization comes with its unique set of challenges. And that’s where a robust marketing automation platform can help you. You can curate a more efficient strategy to implement important data points in your various marketing campaigns. Here’s how.
1. Identify Deeper Pattern in Data
Today’s savvy customers want you to sound human and need personalized content that resonates with them. Marketing automation backed with machine learning allows you to personalize customer experience based on their history of interaction, behavioral data, and digital preferences. Also, by leveraging deep learning, you can identify deep patterns and take the intent of the customer into consideration.
2. Drive Customer Retention
Every business knows that the cost of retaining a customer is less than acquiring one. Customer retention can increase your profits by manifolds. Marketing automation powered with AI and deep learning will ensure that the right message gets to the right person at the right time. It will help to identify customers’ tastes, preferences, spending patterns, and even micro preferences to send highly personalized and relevant suggestions to your customers, which, ultimately will help in customer retention.
3. Analyze Data for Hyper-Personalization
The first thing to improve customer experience with hyper-personalization is understanding the customer. This includes behavioral, geographical, and demographic data, and allows for the targeting of each segment and person differently for more personalized communication. A marketing automation platform can help you analyze segment audiences, score leads, use predictive analytics to analyze data points, track the complete customer lifecycle and provide personalized customer experience.
4. Mail Out Surveys to Form Customers
Leverage marketing automation to send surveys to customers who have completed a purchase, with the intention to collect voice of customer data and improve the shopping experience for customers individually and collectively.
The Bottom Line
Hyper-personalized marketing will become a crucial part of any successful business as technology-enabled customer data increases, customer expectations continue to evolve, and the marketplace becomes more competitive. Data, analytics, and AI are key tools in crafting a hyper-personalized strategy that will empower brands to foster stronger connections with customers and excel in the marketplace. With the cut-throat competition across industries, marketing without personalization would not work in the coming years. So, it’s time to take things personally.
Ready to Drive More Conversions Using Hyper-Personalization? Let’s Talk!
If you’d want to know more about all the amazing things you can do with hyper-personalization automation, just drop us a line at [email protected] and we’ll get back to you!
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