Stay current. Get our newsletter.

04/22/2021
By
MJV Team

Why is Hyper-personalization the way to reach customers?

The age of experience is transforming the business world. The consumer is increasingly demanding from companies brands solutions that provide them with remarkable experiences.

To respond to these demands, hyper-personalization may be the ideal solution.

Competitive parameters have changed, expanded, and taken intersectoral proportions. The consumer now compares the interactions with each brand with the best in the market in terms of experiences.

Spoiler: he is not concerned with whether this industry has success cases in User Experience or Customer Experience. For him, this company, whatever it is, should build an engaging experience.

And he is right. To meet these new expectations, conventional customization efforts need to evolve.

Continue reading the article to find out what hyper-personalization is and understand why this trend represents the next step in consumer experience, relationship, and customer retention!

What is hyper-personalization?

Hyper personalization is a customized experience of the shopping journey. It consists of offering products, services, and solutions highly adherent to customers’ needs, strengthening the relationship, and ensuring customer loyalty through good experiences.

Its objective is to reduce the “friction” of the journey as much as possible, finding the right context and timing to offer the exact solution to solve the customer’s problem.

The magic is in making the customer have an individualized perception of the solution and solve their need/desire efficiently, without obstacles, and in their channel of preference.

If we had to choose a phrase that translates the idea in its essence, it would be: “this solution was made for me.” Yes, it was made for the individual in question and for all those who fit the same consumption profile.

Hyper-personalization evolves the audience segmentation, allowing to deliver more efficient, customizable, and subject to modifications in real-time to better respond to customer requests.

How does hyper-personalization work?

New consumer behaviors already require companies to have a personalized experience. With the consolidation of the experience market, this concept is evolving – and whoever can adapt more quickly is ahead.

Consumers have a preference for recommendations that are increasingly in line with their tastes and needs. In this context, organizations need to be able to map their interests in detail to offer specific solutions.

Remember that we mentioned that the future of experiments is to offer more options to the consumer? This trend consolidates the concept of omnichannel.

Omnichannel is a strategy for integrating a company’s sales and relationship channels, offering a fluid shopping experience. This symbiosis is a crucial factor in ensuring customer satisfaction.

An omnichannel strategy, among other goals, aims to:

  • Ensure digital presence.
  • Collect inputs to enrich the customer’s history of interaction with the brand.
  • Track customer needs.
  • Diversify and segment the contact points for different media.
  • Allow a cross-check of data to draw more detailed customer profiles, collaborating to increase sales and/or loyalty.

Strategy is one of the pillars of the Digital Transformation process as it gives greater intelligence to the process of understanding customer needs. 

Why is hyper-personalization so crucial for the relationship with the customer?

The hyper-personalization work essentially consists of mapping the customers’ pains, needs, desires, and preferences and monitoring the evolution of their consumption habits. In other words, you follow the consumer journey from end to end to know the right time to offer a product or service.

These actions make up a highly contextual equation. To achieve hyper-personalization, it is necessary to acquire deep knowledge about clients’ behavioral profiles, identify the stage of the journey and the overall context, and constantly update this information.

Data intelligence: the engine of hyper-personalization

One of the omnichannel legacies is to set the stage for the implementation of data-driven business intelligence. An omnichannel channel strategy that will guarantee the quality of inputs, allowing you to collect inputs at all times during the purchase journey. 

And this is where we wanted to get to: the moment when the discussion goes from being conceptual to practical. The hyper-personalization process will only work if your company invests in ways of collecting and processing this data.

To refine these inputs, you will need a data intelligence strategy and an extraordinary Data Science team. Do you know how you’re going to do that? Exploring a combination of automation, algorithms, and Artificial Intelligence.

Decision automation algorithms are powered by processes such as machine learning and deep learning. They are the ones who will scan the database to find the fit between the information collected and the consumption profiles to create hyper-segmentations.

This automation of the decision process manages to cross data from different sources, considering many variables. This complexity will ensure that your company can adapt marketing and sales strategies to understand this evolution of consumer expectations.

The result of that? More adherent experiences, increased sales, and improved customer satisfaction rates. Check out some Data Science solutions that MJV offers in the context of hyper-personalization!

The next level of customer service

 Every trend has an adoption curve. First come innovators, those who have discovered a new way of doing things. Then, enthusiasts. According to experts, these two groups represent about 15% of the market, on average.

 hyper-personalization-grafic

The graph shows the trend curve or diffusion curve of innovation. Here, there is still a vast field of opportunities to explore. It is precisely the stage where hyper-personalization is found.

However, as soon as the initial majority arrives is the moment when innovation becomes a market standard.

What does that mean? That you need to invest now to get ahead of the competition and ensure a competitive edge.

The time to think that personalization is to call your customer by name in the email is over. Invest in an omnichannel strategy and data intelligence to evolve towards hyper-personalization.

Back

Stay current. Get our newsletter.