The Shift to Hyper-Personalization: Beyond Basic Segmentation

Hyper-personalization uses the power of AI and machine learning to go beyond segmentation.

The Shift to Hyper-Personalization: Beyond Basic Segmentation
Kaite Metz // Adriana Lacy Consulting

New advancements call for new strategies. AI is popular, here to stay, and ready to be used in your new marketing strategy. Hyper-personalization uses the power of AI and machine learning to go beyond segmentation. While marketing in the past involved splitting people into groups and providing different experiences for each, this involves using a person's real-time data to provide an experience unique to them. In the online world of today, connecting with a potential customer fast is the best way to rise above competitors.  

Understanding Hyper-Personalization

Personalization has always been a nice add-on to marketing. From emails with the customer's name in them to targeted ads showing a product you think they need. With the advancement of algorithms and AI, people on the internet are used to seeing exactly what they like now. With how much people share and click, there is also a lot of information about them out there that allows you to send them extremely personalized content. 

Personalization might show all 20-25 year olds a certain selection of your new fall collection while showing 25-30 year olds a different part. Hyper-personalization shows each individual a different clothing item based on what they purchased in the past, what colors they like, what style they like, their body type, their location, and a whole host of other information. This means you are always putting your best foot forward with first impressions. It also helps existing customers find more of what they love from you.  

The Benefits of Hyper-Personalization 

The advantages of hyper-personalization go hand-in-hand- with the benefits associated with effective marketing. Those include:

  • Enhanced Customer Experience - You can’t get any better than a site that functions based on how you have previously used sites, ads that are specific to what you need, and recommendations that are based on your specific details. 
  • Increased Engagement And Loyalty - This is an obvious bonus. When people see something they like, they are more likely to click through and stick with the brand that always seems to know what they want/need next.  
  • Keeping Up With Expectations - As customer's tastes (and current trends) evolve, so does their advertising. Instead of keeping them in the same bubble, hyper-personalization grows with them. This assures they can always find what they like through you.
  • Competitive Advantage - Taking advantage of AI will help you learn and develop strategies faster and better than any company not willing to take the leap.

Overcoming Fears With Data Collection

Privacy concerns are going to be top of your list whenever data collection and hyper-personalization are brought up. The best way to keep trust with your customers is to be extremely transparent about what data you collect and why. This applies whether they voluntarily provide data or if your company is collecting it in the background. Giving them a chance to opt out of the hyper-personalized level of data collection is another way to garner trust. 

Case Studies: Hyper-Personalization In Action

The big guys in the game have already taken advantage of this new tool. Check out how they do it and use them as inspiration for your own strategy. 

  • Amazon - The e-commerce giant has a hyper-personalized homepage. It shows you what you may want based on past purchases and encourages you to repurchase items that may have run out since you last ordered. They also recommend products that go along with what is already in your cart. 
  • Spotify - The music app we all love. Not only do they hold your personal libraries, but they also create and recommend new playlists based on what you like. 
  • Netflix - Just logging into a friend's Netflix will show you how personalized they make it to each viewer. From category recommendations to a “picked for you” section, they know what you will binge. 
  • Starbucks - The Starbucks app isn’t just a place to collect points. They also offer ways to increase your star count through purchasing certain food or drink items, hint, they are all based on what you have purchased before. 

Hyper-personalization is going to be the new way companies reach and connect with their customer base. As people move more and more online, they want to get that one-on-one experience even through the screen. Of course, there are always concerns with privacy when we talk about data collection. Staying transparent should allow you to rest easy on any customer concerns (transparency in general will also make your business stand out over others). 

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