Marketing in the era of hyper-personalisation

Written by: Paula Ferrai

illustration showing a user profile

In today’s evolving marketplace, brands are leveraging AI and data-driven technologies to gain a deep understanding of their customers. This is how brands deliver on consumers’ needs while securing ultimate satisfaction and brand loyalty.

It’s no secret that consumers are more discerning than ever in the digital era where brands fiercely compete for their attention at every touchpoint. But delivering tailored shopping experiences that take into account a person’s preferences is how brands can ensure satisfied and returning customers.

Hyper-personalised shopping experiences are how brands stand out from their competitors, grab valuable consumer attention, and ultimately enhance the customer experience.

What is hyper-personalisation? 

Hyper-personalisation is a marketing strategy that leverages Artificial Intelligence (AI), advanced analytics, and real-time user behavioural data to customise services, products, and experiences according to a customer’s preferences. 

When done right, hyper-personalisation can create highly targeted and sophisticated customer experiences designed to match shoppers with their preferences. 

Ultimately, it is the process of brands listening and communicating with customers at every touchpoint to predict their behaviour to provide them with what they want, when they want it.

How does it work?

Hyper-personalisation runs on consumer-driven data that is used to create a detailed customer profile. User data is collected from various sources including consumer trends, social media, mobile browsing preferences, purchase history, and even Internet of Things (IoT) devices. The more data received, the more detailed the profile.

With each interaction, customer profiles enable sellers to find out important information about each shopper to customise marketing tactics. For instance, knowing when a customer usually surfs the web to time an ad that is tailored according to their recent browsing and/or purchasing history.

Why brands need hyper-personalisation

The primary benefit of hyper-personalisation is that it enhances the user experience and establishes a personal brand/customer relationship, driving more sales and fostering loyalty. 

Tailored shopping experiences remove obstacles in the customer journey to provide quicker and easier access to relevant items only. This shortens the sale cycle and streamlines the path to purchase.

Leveraging real-time analytics, hyper-personalised marketing campaigns can build upon themselves with each new piece of data, creating adaptable, continuous, and robust targeted marketing opportunities. 

Today’s consumers demand personalisation at every digital touchpoint. Many people feel that personalised engagement is a major factor in purchasing decisions and most are willing to hand over their personal data if it ensures tailored experiences. 

Not leveraging hyper-personalisation can impede a brand’s success in the modern era. According to Gartner, brands are at risk of losing nearly 40% of their existing customers due to poor personalisation efforts. 

Hyper-personalisation drawbacks

Although hyper-personalisation may at first appear to be an ace up the sleeves of brands and marketers, it does have drawbacks — especially around data security concerns. Consumers are increasingly anxious about how companies collect and use their personal data. Many organisations struggle with the balance between consumer privacy and the promise of personalisation.

However, permission-based hyper-personalisation can ensure customers are less likely to feel suspicious about the amount of personalised information brands know about them.

In addition to privacy concerns, hyper-personalisation is tedious and time-consuming to get right. And to achieve highly granular personalisation insights can be expensive.

But even if you have the resources and complete consumer trust, hyper-personalisation requires a dedicated team of talented marketers who can develop robust marketing strategies from the data. Having the data is the first step: gathering valuable insights from the data to turn into tailored messaging and develop a personalised user experience takes skill and know-how. 

The future of personalisation 

With the Web3 movement and metaverse era quickly entering the mainstream, the age of hyper-personalisation is set to reshape our digital interactions to create a more immersive user experience.

New opportunities for hyper-personalisation will continue to develop alongside cutting-edge technologies that will cater to our digital future. However, the essence of hyper-automation will remain the same: finding new ways to enhance the user experience by helping customers find what they want easier and faster. 

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Last modified: July 1, 2022
Author info
Paula Ferrai
Paula leads our Marketing & Communications team. Her career started 20 years ago in advertising, and she’s since picked up a wealth of experience both in the corporate and agency worlds. She loves scuba-diving and dreams of swimming with dolphins again.