Have you ever wondered why those Nike Airs you’ve been eyeing online have suddenly popped up all over your TikTok For You page? This is just one of the many effects of hyper-personalization. But what exactly is hyper-personalization? Hyper-personalization is a comprehensive term that describes a variety of advanced methods to collect data on customers in order to tailor and customize their experiences. In the digital era, businesses that have successfully integrated hyper-personalization are given a defined competitive edge compared to many of their counterparts.
AI, data analytics, and automation have all pushed marketing to become more complex and useful than the traditional approach. The first step of any hyper-personalized approach is data collection. As you gather data on an individual, you can enhance the level of personalization in your offers. According to Forbes, 49% of customers bought items they were not intending to as a result of a personalized recommendation. You may receive emails reminding you to buy products you were browsing for previously, or emails filled with recommendations about products you may be interested in based on your browsing history and previous orders. This is the most common form of hyper-personalization. Other more complex methods include omnichannel optimization or predictive personalization.
A variety of well-known businesses such as Amazon, Starbucks, and Spotify are providing each and every one of their consumers with a personalized experience. Amazon’s high-powered recommendation engine creates unique experiences for all customers. Direct emails are often sent to users who close Amazon searches- these emails encourage users to purchase the products they were looking at. Data about a customer’s search query, time spent on search, purchase history, brand affinity, and spending amount are all recorded and used for marketing purposes.
Using customer’s personal data for marketing purposes has obvious ethical implications, but everyone has the ability to choose whether their data is being used or not. By changing privacy settings, you can ensure that your data is not being used or sold for marketing purposes.
We live in an era where customers expect us to know their wants and their needs and hyper-personalization is just the way to do this. The next time you see an ad or get an email that just seems to be targeted to your interests you will know that it is because of hyper-personalization.
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