Hyper-Personalization: Everything You Should Know

Have you noticed that people are more inclined to listen to whatever it is that you have to offer when you address them personally?

Personalization is a very important tactic that most marketers and business owners use in their marketing efforts to capture the attention of their ideal customers.

But you see, times are changing fast and the market is becoming increasingly competitive by the day, which means that personalization can only go so far.  

Today’s distracted consumers need to get more than just seeing their names in the subject line of your emails to get them to engage with you. Plain customization just won’t cut it anymore.  

So, how do you capture your target audience’s attention, get them to engage with you, and provide the ultimate personalized shopping experience?

Hyper-personalization is the answer!

In this article, we will discuss everything you need to know about hyper-personalization - what it is, what makes it different from personalization, and tips on how you can build a hyper-personalization strategy for your business.

Without further ado, let’s get started!

What Is Hyper-Personalization?

Hyper-personalization uses Artificial Intelligence (AI) and real-time data to provide highly relevant content, ads, product recommendations, and more personalized engagement to every user.  

What Is the Difference Between Personalization and Hyper-Personalization?

Personalization is the method of using personal information like name, birthday, title, company, etc. in your communication.  

For example, sending a customer an email with their first name in the subject line is a classic example of personalization.

Hyper-personalization, on the other hand, takes it to the next level by using behavioral and real-time data to serve contextual communication that is highly relevant to a user.  

Contextual communication occurs in certain situations wherein all entities involved are on the same page and know what the conversation they’re having is all about.  

For example, a visitor browses for lipstick on your website, spends around 10 minutes, and leaves without purchasing. During that visitor’s stay on your site, AI quickly analyzes their behavior to come up with information, like the following:

• More inclined to buy discounted items
• Prior search and purchase history for the lipstick color wine red from brand X  
• Visitors most likely buys during Friday night from 9-12 midnight

• Historical data shows that user is most likely to respond to push notifications

Using the information you’ve gathered with the help of AI and real-time data, you can create a hyper-personalized campaign that uses push notification to let this specific user know about a flash sale happening on Friday night for their favorite lipstick color.  

Now, don’t you think this approach is more effective in capturing the attention of your ideal customers and converting them quickly?

Why Is Hyper-Personalization Necessary?

Hyper-personalization allows you to create the ultimate shopping experience that your ideal customers have always wanted. Here’s how:

• It gets rid of any friction in the sales funnel and provides a smooth and seamless shopping experience.
• It prevents customers from getting overwhelmed with a wide selection of product choices by only showing items that are relevant to what they are looking for.
• It allows you to address the different paint points users usually have when shopping online, which enables them to make a final purchase decision faster
• It allows you to capture the attention of your target audience in a cut-throat market

By providing the best shopping experience for your customers, you can boost your sales rates by 20% and your company revenue up to 76%!

6 Easy Tips You Can Use to Build a Hyper-Personalization Strategy for Your Business

Collect Customer Data

According to a recent report by IBM, 80% of consumers feel like companies fail to understand what they want and need.  

So, to solve this problem and make consumers feel that you get them, you need to engage and communicate with them using the hyper-personalized approach.  

But how can you do this?

Through data!

To build an effective hyper-personalization strategy for your business, you must first collect data about your customers or prospects.  

By data, we mean everything from their location, search history, product views, how they go about your website or app and what products they’re looking at, etc.

Using the information you’ve gathered, you can create highly relevant content for your ideal customers that will not only catch their attention, but also make them feel like they’re understood.  

The more detailed data you collect, the better you can hyper-personalize the messages you send to each of them.  

Automate Data Collection

The only way you’ll be able to collect, organize, and interpret real-time customer data is if you use an automation platform.  

If you do it manually, it’ll take forever to complete and by then, the information you’ve collected won’t be relevant or useful anymore.

Automation not only allows you to collect real-time data faster, but also more accurately.  

Once you’ve collected data about your customer, you can now set up your multi-channel marketing campaign strategy that will help you close more deals and make more sales.  

Let Users Know Their Information is Being Collected

People are usually very careful when giving out their information. But according to a survey, 81% of consumers are willing to share their basic information for a more personalized shopping experience, and that 83% of them are more willing to give out data if a company is transparent about it and how their information will be used.  

This means you need to ask visitors on your website and app users if it’s okay to collect data, what type of data you’ll be collecting, and how you’re going to use the information you’ve gathered.  

The more open you are about it; the more people are going to trust you.  

But of course, you also need to make sure that their information is safe with you. So, see to it that the information you gather is secured and protected from any hackers. Let your users and visitors know about this too.  

Segment Your Customer Data

After you’ve finished collecting a good amount of customer data, it’s time to segment them into groups.  

You want to put together customers or prospects who show the same behavior or have the same demographics, interaction history, average spend, etc.- depending on what your goal is.  

This makes it easier to develop and send out hyper-personalized messages to the right users.

Create Your Messaging

Now that you’ve segmented the customer data you collected and grouped customers according to their similarities, you can create a hyper-personalized messaging and offer for each group.  

For example, based on the data you collected, you decide to group women aged 18-25 who have a purchase history of buying new release items at a discounted price, and are very responsive with push notifications.  

So, to grab their attention and convince them to buy, you send out a special discount for this group of individuals whenever you have new release items and let them know about it through push notifications.  

Measure the Success of Your Campaign

The only way to determine  if your hyper-personalization strategy is a success or a failure is to monitor your campaigns.  

If you’re doing an email marketing campaign, some key metrics you need to keep an eye on are:

• Open rate
• Campaign ROI
• Unsubscribe rate
• List-growth rate

• Click-through rate
• Conversion rate
• Bounce rate

If you used hyper-personalization for your content marketing strategy, then some metrics you should look out for are:

• Social traffic

• Organic search traffic
• Direct traffic
• New visitors
• Lead quality
• Returning visitors

• Bounce rate
• Brand visibility

How Are Some of the Most Well-Known Brands Using Hyper-Personalization?

1. Amazon uses a recommendation engine to boost its conversions by 35%.

Their algorithm uses the following data points to create highly relevant and useful product suggestions for their users:

• Past purchase history  
• Items added to wish list
• Items in the cart
• Rated and liked products

2. Spotify creates a highly personalized playlist for each user. Aside from this, their Live Concert Feature notifies users via email whenever their favorite artists have an upcoming event and even provides the option to purchase a ticket to that event.  

3. Netflix uses behavioral attributes and predictive learning to provide its users a hyper-personalized experience by suggesting content that would most likely be favored by each user.  

Conclusion

Without a doubt, hyper-personalization is the key to providing your customers the kind of experience they will never forget! Take your business to the next level with hyper-personalization.  

At Digital Resource, it is our job to stay on top of marketing trends so we know how to put our clients 10 steps ahead of their competitors.  

Allow us to help you create a hyper-personalized strategy tailored for your business. Contact us today by filling out our form!

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