Moving from Personalization to Hyper-Personalization

Today, we may think of personalization as being a data driven element of digital marketing which involves algorithms, customer profiles, behavioral experts and more, but there’s a chance we may be overthinking things.

Sure, these factors are all important – especially in the world of online retail – but let’s pause for a moment and consider the origins of the concept of personalization. And we’re going to stop you right there, because the origins of personalization go back to before the invention of the computer and have nothing to do with our modern idea of data.

Personalization goes back to the days when your local store knew everything about you, by dint of being an integral part of the community. The person behind the counter would greet you by your first name, have a genuine conversation with you, and know instantly the kinds of products you were likely to be interested in.

This, old fashioned as it seems today, is hyper-personalization.

Hyper-personalization

That’s right – going beyond personalization to achieve hyper-personalization actually involves taking a step backwards and embracing the ethos of pre-internet retail and remembering how it felt to step into a local store where the people genuinely knew you and your needs.

While it’s true the world has moved on and we now live in a far more globally attuned marketplace, that doesn’t mean the lessons of the past cannot be applied to deliver a hyper-personalized service in the here and now.

Omnichannel experiences offer the clearest path to hyper-personalization. Take Sephora, which enables customers to book a consultation at their local store with its smartphone app meaning the assistant on duty can approach them with all the information they need at their fingertips to deliver a hyper-personalized experience. Products the customer has looked at online can be ready to go and be sampled and/or purchased in-person.

This is just one example of how ecommerce and omnichannel brands today can use modern technology to create a hyper-personalized experience more in line with the local community focused retailers of yesteryear. Hyper-personalization is set to transform the ecommerce and physical retail world into a new kind of shopping experience where customers can feel like their presence is truly desired and appreciated.

"When you truly personalize your communications for each customer, messages are more likely to resonate with the customer’s unique and evolving needs to create a consistently positive brand experience,” writes Venture Beat. "That goes a long way toward improving customer experience, and as a result, loyalty and retention.”

New Insights

Beyond the feeling of belonging which used to come from those local store experiences, hyper-personalization also seeks to put new spins on "traditional” digital marketing concepts.

This can include analyzing whether certain customers are more receptive to messaging during the day versus in the evening, or Monday to Friday versus Saturday and Sunday. Does this customer respond better to emails or text messages or social media posts? What about urgency compared to empathy? Experience versus price? There are dozens of interactions which feed into the retail experience and the results of those interactions are going to be different for each shopper.

Taking all these factors and using them to create truly detailed customer profiles which go beyond the most superficial of demographical information is the key to unlocking that old-fashioned "mom and pop store” feeling in an ecommerce brand which has to cover the entire country or even planet – rather than the high street of your hometown.

"Using multiple aspects of personalization can create a multiplier effect – optimizing your interactions further and further. All of this takes a continuous approach,” continues Venture Beat. "Hyper-personalization is refined by identifying and validating patterns in behavior and continuously testing and adjusting the next interaction based on what was learned from the last interaction with that customer. For effective digital engagement, you need to be able to continuously learn and rapidly apply your findings. Adaptation is the name of the game.”

There is no comparison between the relatively superfluous data points which feed regular personalization and the myriad of constantly evolving information streams which all converge to craft hyper-personalized ecommerce and omnichannel experiences which effectively craft the feeling of being welcomed somewhere warm and familiar and takes you back to the kinds of relationships you had at a local store, only this time it’s with a global ecommerce brand.

Final Thoughts

Hyper-personalization takes all the lessons we’ve learned over the last century of retail and expertly blends them into a shopping experience which will drive loyalty, increase average purchase volumes, and help create a better and healthier industry for the future.

Hyper-personalization is certain to be a hot topic at eTail West 2023, taking place in February 27 – March 02 at the JW Marriott Desert Springs, Palm Springs, CA.

Download the agenda today for more information and insights.