We live in a world that’s heavily penetrated by digital platforms, which has given prevalence to data. As our online activity has grown, so has the ability of sellers to market their products through more platforms than ever before. But this overload of information and online activity has led marketers to ask the question “How to stand out among the clutter?”. It is said that a user is either gripped on or loses interest in the first 8 seconds of reading a message. So the trick is to grip the attention of the user in these 8 seconds by making the message clutter free and highly targeted. And this is achieved through hyper-personalization.

Personalization vs. Hyper-Personalization:
Personalization tricks such as adding the name and designation to a communication mail have existed for some time now. What makes Hyper-Personalization different is the use of real time and behavioural data to create highly contextual messages that is highly targeted or highly personalized. This real time data is collected from multiple channels and various touch-points and is used to tailor the message or the product or the services.
This can be illustrated using an example where a person spends time browsing for a pair of running shoes but leaves without buying anything. Here, let’s say the data collected are

     He has a history with brand X and prefers that brand
 He has done shopping mainly on Sunday evenings between 5-10PM
 He notices and indulges mostly on app notifications
 He mostly ends up buying an item only if there is discount shown for it

Now these data are used to design a Hyper-Personalized message to person which will be sent to him on a Sunday evening between 5 to 10pm and the message will be an app notification saying that there is a discount sale of brand X running shoes. Here his search history and real time data like time spent are used to come to a more personalized message.

Need for Hyper-Personalization:
As the people get more and more dependent on the internet for information, there is a need for marketers to get smart and improve their approach. According to Google search frequency of the phrase “best” has increased by 80% in the last 2 years. This points to the fact that users are more informed and opinionated these days and therefore user engagement becomes more crucial. Statistics show user engagement with content has decreased by 60% and this means that information overload is making the user to lose interest and tune out all the noise. This is where Hyper-Personalization comes into play as it makes the user engagement more targeted and customized and can thus grip the attention of the user more often. Accenture backs this up by its finding that 75% of the consumers are more likely to buy from someone who offers a more customized product which is tailored to their requirements and preferences.

Relevance of Hyper-Personalization:
We live in a world where data is readily available. And with the advent of AI and machine learning, wielding this data has never been more effective. We know that studies show customers tend to prefer a more customized e-commerce and retail experience and this in turn leads to higher revenue and a more loyal customer base. Add that with the fact that over 40% of consumers say they are comfortable having a retailer monitor their shopping patterns and purchases, you get the feeling that customers in the new age demand a great shopping experience along with the actual product. And this has given more relevance to the concept of Hyper-Personalization.

Use of context:

We have talked about how Hyper-Personalization is highly contextualized. Let us further elaborate the idea. Hyper-Personalization has gone beyond the traditional personalization by going beyond just looking at the customer data but by also looking at the customer context. For example the data of whether someone uses an iOS or Android can be contextualized to mean different things like demography, income, willingness to spend and so on. Now this information can be used to market to these people with items in the same context for example a luxury watch for an iOS user as he is more likely to spend money on luxury items. Similarly by taking into context the various data, we can personalize the message or campaign more in order to suit the target.
We have seen how marketers have began customizing their messages in order to capture the fancy of the customers and how the easy availability of data has given prominence to this movement and hence Hyper-Personalization, but there is no strict definition as such of Hyper-Personalization. There is no point of customization where you say this is now Hyper-Personalization. The level of customization to a message or a campaign or an item is done depending on the industry and its financial power and thus can vary from organization to organization. What we can say is that customers want customized product, and this makes Hyper-Personalization a necessary thing to invest in for marketers.





Arun Vijay

PGDM 2018-20


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