Moving from Personalization to Hyper-Personalization
December 11, 2018

Introduction

We often talk about personalization on our blog but I don’t believe we ever used the term, “Hyper-Personalization,” even though we’ve mentioned some aspects of it. So, what is Hyper-Personalization and how is it different from just plain Personalization?

If we talk about basic personalization, one of the common approaches is segmentation, where customers are assigned to different personas. In this case,we don’t treat them as a specific person, we treat them like other customers of ours who belong to the persona(s) with which they have most common.

Where can we go from there? I think the answer is pretty obvious: we can strive to treat every customer as a specific person; we can Hyper-Personalize. How might we do that? Let’s explore this approach a little bit more.

 

Why do You Need This?

You already have personalization in place for your business and, it’s working… Kinda? You know it could always be better, and the competition is always around hoping to get your customers. So we kinda answered the question (you know it can be improved), but look at it from a different angle and consider what customers want.

I went through many statistics while doing research for this post, but I don’t want to bother you with numbers. I'll just summarize the conclusion and say,es, customers want Hyper-Personalization!”

Customers are willing to give their data to a company if doing so guarantees them better service. When a customer’s experience and offerings are highly personalized, they are much more likely to:

  • Make a purchase
  • Give their data to a company
  • Stay loyal to the brend

If this answers the question of, “Do you need it?,” and I really think it’s a no brainer (because, of course you do!), read on. We’ll take a peek under the hood and explain more about how it works.

 

How Does it Work?

I did some basic comparisons between Personalization and Hyper-Personalization at the beginning of this post, but there is much more to it. When moving beyond personalization and simple profiling, we use specific customer history and real-time context to truly understand the user’s needs and intent. Behavioral and real-time data are used to create highly contextual communication that’s relevant to the user.

This way, we can provide highly targeted and personalized products, services, promotions, and content at the right time; this is what the customer expects. With this approach, you are creating satisfied and loyal customers for your brand. Now that we understand the concept, let’s look at a real life example.

 

Case Study: Amazon

For a quick example of Hyper-Personalization, I’ll use the leader in this area: Amazon.
Their recommendation engine algorithm is called item-to-item collaborative filtering. It suggests products based on data points like:

  • Full name
  • Search query
  • Average time spent on search
  • Past purchase history 
  • Brand affinity 
  • Category browsing habits 
  • Time of past purchases
  • Average spend amount

Using this data they create your profile and recommend highly personalized offers to you. If you’ve used Amazon, you’ve probably experienced this yourself.
It’s no surprise that conversions from Amazon’s on-site recommendations are 60% higher when compared to other E-Commerce brands, according to Sucharita Mulpuru, a Forrester analyst.

 

Conclusion

By 2020, customer experience will overtake price and product as the key brand differentiator, according to Frost & Sullivan . Brands today must understand how consumers search and discover products if they want to be successful. They need to understand consumer actions, behaviors, interests, wants, needs, and expectations at virtually every stop along the purchase journey. Most importantly, they need to know how to quickly respond and adapt to a customer.

I hope I’ve shed some light on the importance of Hyper-Personalization with this post. If you agree that Hyper-Personalization is needed for your business to grow, but still have some questions, feel free to contact us!