How hyper-personalisation can help a brand achieve max ROI with reduced marketing spends

Who doesn’t love personalized retail experience? It’s flattering for the consumer when a brand seems to know their preferences and recommends products or solutions based on that. When a brand is able to do that, they are building a strong connect and a long-term relationship with the consumer.

With competition heating up in both the offline and online retail space, brand experience has moved to the next phase of personalization – towards hyper personalization. This is because customer expectation from the brands have increased manifold, and they are not easily satisfied. They are always looking for that little extra.

Why marketers should take hyper-personalization seriously

A Deloitte Report on Importance of Hyper Personalization states, “Marketing leaders must recognize that providing a superior customer experience is not only expected, but a competitive advantage. Experience is critical to capture new customers and retain existing ones in today’s crowded digital landscape, while also maintaining or increasing share of wallet. Customer experience is becoming even more important given that increased globalization offers customers an abundance of choice.”

This is where hyper personalization comes in. This is where the brands are expected not just meet the customer need but also anticipate and fulfil their demand and may be even exceed the expectation. That is what hyper-personalization is. No longer can the consumers be grouped together and given a blanket treatment, since their expectations have changed, and they are willing to move to the next brand that give them a better customer experience. 

With consumer loyalty to brands in frail state, stiff competition in the market and the availability of detailed consumer data, the brands are under lot of stress to ensure that customers do not stray and remain engaged with the brand and its products. 

So, what should brands do? In this digital-first mindset of the consumers, they should look to AI-powered hyper-personalized marketing strategy. They should use predictive analytics and AI to develop a stronger understanding of the customer mindset and purchase behaviour and then create a more authentic interaction with them. The marketers should make most of the data that technology throws at them for insights-driven results. 

Hyper-personalisation allows a brand to connect with meaning 

We all recognize that digital marketing is beginning to take the lion’s share of the total marketing spend of the businesses. And to make the most of that spend, the brands need to use data-driven insights for going from a customer segmentation approach to customer personalization route. Till now, businesses have used customer segmentation as part of their marketing strategy to connect and engage with their customer base. The segmentation approach creates customer groups based on shared likes, dislikes, and activities, and a brand uses that to push relevant information, communication and offers to the specific customer segment. 

While, earlier it did work, but with increased competition in the market, it is seen that the segmentation strategy does not often deliver optimal results on the marketing spend. The customers end up ignoring such communication from the brand, as they may not remain relevant to the customer needs of the moment. This is marketing investment lost, literally – for not only does the customer feel disengaged but you may stand to lose them to a competitive brand altogether. Even though, segmentation is a tried and tested method, but it does not offer a deeper level of personalisation with the consumers. 

Since, most digital savvy brands today are investing in AI-driven technology for data prediction and analytics, so the marketing and even the sales team should own the data and make most of it. Use the same to devise a hyper-personalized marketing strategy – one that drills down to minutest details and differences in customer preference to target customers are very individual level with not offers but solutions. 

How hyper-personalization reduces ROI

Four ways hyper-personalization helps a brand. It helps to innovate and optimize on investment with new tools and strategy, improve customer experience, helps to make data-driven decisions, and finally drive profit. It helps to reduce customer acquisition and retention cost. So, you should opt for hyper-personalized marketing if you are looking at 

• Creating higher customer engagement through in-moment customer journeys.
• Enabling 24/7, personalized customer service.
• Developing real-time customer segmentation.
• Ensuring detailed product targeting.
• Developing a recommendation engine for consumers.
• Providing dynamic pricing strategy to attract individual customers.
• Enabling data driven content generation and dynamic landing pages and websites. 

Disclaimer: The views expressed here are solely those of the author and do not in any way represent the views of exchange4media.com