Hyper-Personalisation: How to Use AI to Effectively Implement Your Marketing Measures [5 Reading Tips]

Hyper-Personalisation Reading Tips — Source: Unsplash/Melanie Deziel

Offering the right product at the right time – the art of marketing. However, the clustering of potential customers based on past search queries has reached its limits. No one wants to see ads about knitted socks for weeks just because they bought them online as a birthday present for grandma at some point in the past.

The use of the buzzword »hyper-personalisation« is definitely justified here: artificial intelligence and real-time data analysis make it possible to address customers according to their needs and on an individual basis.

Hyper-Personalisation: Data, Data and Even More Data

The personalisation of products is nothing new. Marketing measures have long been managed and optimised primarily on the basis of historical data. Initially, however, they were only based on the products viewed by customers and past purchase data.

With hyper-personalisation, the analysis of data goes one step further. Besides basic data on purchasing behaviour, time- and location-related data is collected, analysed and evaluated in real time. All customer interactions and details are used as relevant parameters, for example the number of previous purchases, purchasing times or responses to discount offers. Preferred colours and sizes, location and body type as well as the standard payment method are also included in the analysis to create a perfect, entirely personalised shopping experience. Other online platforms such as social media and e-mails provide additional information on customers as well.

Artificial intelligence (AI), machine learning (ML) and some other Internet of Things (IoT) features help track and analyse user activities. The goal is to identify patterns and correlations in purchasing behaviour. However, methods such as customer data analytics, social listening, profiling and 1-to-1 personalisation also support companies in understanding their customers even better and addressing them according to their needs.

Hyper-Personalisation: What Are the Benefits?

So why is this important? According to a survey conducted by Epsilon, 80 per cent of customers are more likely to place an order when brands offer personalised content.

This is exactly what hyper-personalisation does: it makes it possible to address customers directly and on an individual basis – across all channels. In addition to personalised products, it provides customers with easier search options and faster access to relevant information, accelerating their purchasing processes by doing so. This significantly improves the customer experience, which in turn allows for a unique shopping experience.

However, hyper-personalisation not only boosts customer satisfaction and strengthens brand loyalty. As a company, you can also benefit from

increased conversion rates
the high scalability of data and campaigns
reduced marketing costs
lower return rates
more sales

It therefore comes as no surprise that major brands such as Amazon, Netflix and Spotify have already firmly integrated this method into their business model.

Hyper-Personalisation: Transparent and Secure Implementation

But is hyper-personalisation really still targeted, individually tailored marketing or is it too much of an intrusion into customers’ privacy? Especially when advertising about topics that were discussed shortly beforehand is displayed on mobile devices, customers may well be put off.

In order to prevent this kind of »eavesdropping«, hyper-personalisation is subject to certain guidelines. Companies are obliged to comply with the applicable GDPR data protection regulations. This means that customer consent is the basis for data collection and storage.

In order to protect themselves against data misuse, customers should nevertheless pay attention to which apps they download and which permissions they grant.

Especially for companies, however, it is essential to handle data responsibly. Those who can ensure sufficient transparency will earn the trust of their customers and thus remain successful in the long term.

Saving Resources in a Data-Driven Way: Download the White Paper for Free Now!

The challenges of hyper-personalisation lie not only in the correct handling and use of customer data. They already start with the collection of this data. That is why the (hyper-)personalisation of offers requires not least holistic data management in order to remain competitive.

Find out in our »Data-Driven Marketing« white paper how data can help you tailor your marketing activities to your customers’ needs, facilitate decision-making and save time and money in the long run.

Fill out the form now and receive a free copy in your inbox!