The Technological Trend Affecting Consumers in Every Industry
In today’s hyper-competitive marketplace, it’s imperative that companies constantly evolve and understand what resonates with consumers – and right now that’s custom-tailored experiences. Gone are the days of generalized mass-marketing tactics. Today, hyper-personalization and communications designed around individual preferences reign supreme – and for good reason.
What Exactly is Hyper-Personalization?
Typical personalization methods stem from utilizing generic customer characteristics such as name, location, or even title. While effective, marketers can take this personalization strategy to the next level using technological advances such as big data, AI, and machine learning.
This technology allows marketers to collect data on the behavior of their customers. They can quantify all kinds of variables in real-time, as well as relate them to each other to deliver the most personalized experience possible.
Why It’s Becoming a Marketing Mainstay
1. Increases Customer Loyalty and Goodwill
Brands need to show their customers that they care about their wants and needs. That’s why “Recommended Picks” when shopping or browsing are becoming standard practice as it demonstrates a level of anticipation that consumers appreciate.
Hyper-personalization makes this process easier, which goes a long way in increasing customer loyalty and goodwill.
2. Higher Conversions
Whether it’s a website, call-to-action, emails or ads, the data from these channels is clear—personalization is effective at raising conversion rates.
- 40% of U.S. consumers say they’ve purchased something more expensive than they originally planned
- 53% of shoppers value personalized experiences when shopping online
- A personalized CTA has been found to increase conversions by 78.5%
- The Economist found that personalized ads led to an increase in consumer awareness by 64%
Top companies such as Amazon, Starbucks and Netflix have been leveraging hyper-personalization into their offerings for years, yielding impressive results. Raising conversions is a goal for every company, and hyper-personalization is a great way to do it.
3. It’s Becoming Expected
According to a Salesforce study, 51% of customers expect that companies will anticipate their needs and make relevant suggestions before they even make contact. As time goes on, personalized offers will become the norm, and consumers will slowly become too accustomed to accept anything less.
How It Can Set You Apart from the Competition
Hyper-personalization is basically about getting up close and personal with your customers and prospects. Consider the following: Your competitor uses standard, everyday personalization methods. They send an email to a prospect with his/her name in the subject line and a mention of his/her company name and location in the opening line. Then they go on to introduce their new product and how it’s a perfect fit for the company.
You, on the other hand, embrace hyper-personalization. Your data shows that the same prospect that your competitor is emailing has spent 30 minutes on your site researching a specific product. Your hyper-personalized campaign sends an email to that prospect the same day, that includes the standard personalization mentioned above but it also highlights the exact product they’ve been researching and an invitation to an upcoming webinar relating to that product.
It’s easy to see the difference between these two examples and which one would stand out amongst a sea of generalization.
Capitalize on It
At the end of the day, hyper-personalization is all about understanding your targets on the highest of levels and using that knowledge and data to enhance the customer experience. Experts predict that by 2020, customer experience will overtake price and product selection as the key brand differentiator. And, if 81% of consumers currently want companies to understand them better, let’s give them what they want.
Looking to make sure your marketing strategy is up to date on the latest trends? Contact us to see how we can help.
About Jeff Sammak
As president and founder of Strata Company, Jeff Sammak has been a leader in the advanced integration of marketing, data and emerging technologies for over 20 years. He has a deep understanding of complex business challenges and keen ability to translate them to technology-driven solutions that align to a client’s key strategic business objectives. He attended Monmouth College for Business, Jeff enjoys scuba diving, skiing and spending time with his family.