How AI Based Hyper Personalization is Elevating Customer Experiences
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Ritu Poddar
Ritu Poddar
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How AI Based Hyper Personalization is Elevating Customer Experiences

Published : July 23, 2019 | Updated : May 08, 2024

In today’s rapidly evolving marketing landscape, embracing AI-based hyper-personalization is essential for businesses aiming to thrive. According to Gartner’s 2023 CSS Priorities Survey, 10% consumers see personalization with privacy as one of the most relevant trends in the future of customer service trends.

But personalization as we once knew it has transformed into something more profound—hyper-personalization.

What is hyper-personalisation?

Hyper-personalization goes beyond addressing a customer by name; it’s about delivering tailor-made experiences at every touchpoint.

Now, brands send marketing messages that are specially crafted for their users. They come as emails during weekends in the mailbox and as app push notifications during the lunch hour. The brand knows what kind of clothes users like and sends recommendations that suit their taste.

This is hyper-personalisation.

Hyper-personalization is taking traditional personalization several steps ahead.

Hyperpersonalized marketing uses all forms of customer information – demographic and profile data, browsing patterns, geographic location, purchasing, and real-time behavioral data across multiple channels and touch-points, derives insights, and tailors the marketing content, products, and services to fit each and every customer’s wants and needs.

It leverages push notifications, app push notifications, and browser push notifications to engage with customers in real-time.

According to a new Mobile Consumer 2023 survey by Airship,  “interests relevant to a brand” (78 percent) displaced “name” as the second most shared information, followed by email address (86 percent). This shows that consumers are willing to share information with brands they love for personalized interactions and special incentives.

Why does AI based hyper-personalisation matter now more than ever?

Until a couple of years ago, demographics and behavioral-data based segmentation was the most capable tool that enabled marketers like you to go beyond cookie-cutter marketing and deliver personalized treatment to their users.

But today’s customers are tech-savvy and better informed than ever before.

Overwhelmed with the marketing clutter and pressed for time, they expect brands to convey exactly the message they want or need each time they are sent a marketing communication. And, every time your content fails to resonate, you miss an opportunity to engage and put your relationship in danger.

In other words, what really matters for customers is a hyper-personalised customer experience.

According to a recent survey, the top three types of personalization consumers find most useful are

  • Recommendations (41 percent) and offers based on past behavior or purchases,
  • Interests and preferences supplied to the brand (40 percent)
  • Content and offers targeted to their current location (34 percent)

Predictive suggestions based on everything the brand knows about them ranked lowest among all types of personalization.

This says that consumers want experiences personalized to them, but they don’t want businesses to know too much about them.

Hyper-personalization, the practice of using AI to personalize experiences, can be a valuable tool for businesses, but it’s important to use it carefully.

Here are some tips for using hyper-personalization in a way that’s respectful of consumers’ privacy and preferences:

  • Be transparent about the data you’re collecting and how you’re using it
  • Give consumers control over their data and how it’s used
  • Use hyper-personalization to provide relevant and helpful recommendations and experiences, not to creep consumers out

By following these tips, businesses can use hyper-personalization to improve the customer experience without compromising consumers’ privacy.

Utilizing AI-powered push notification service and push notification API, you can achieve this level of personalization.

How can you deliver AI based hyper-personalization for better customer experiences?

In the simplest words, if you know “what has happened” and identify patterns in the behavior, you can predict “what will happen” and then decide “what should be done.” In other words, you can deliver AI based hyper personalization for better customer experiences.

AI and Machine Learning are all about understanding those patterns from data, derive meaningful insights, and create personas. You can also learn to deliver hyper-relevant, hyper-personalised content experiences to these personas.

For example, with basic personalization, you would send an email by using the customer’s name in the subject line. But with AI-based insights, you can send a hyper-personalized email about an offer based on an item he recently browsed.

You can also optimize the subject line and sending time to increase the chances of response. Employing the best push notification platform can help you achieve this level of customization.

How does AI based hyper personalization work?

Customer data is the fuel for AI.

Just like a child learns from instructions and observation and starts differentiating between right and wrong by deducing references from the past, the AI engine feeds on historical customer data and trains itself to understand and predict customer behavior.

AI derives patterns on why users responded to an offer, why/when users clicked an email or SMS, likes, and dislikes. You can then base your marketing efforts on these insights.

Hence, data is at the center of any AI-based marketing strategy, and only when the data is connected, pulled from across channels, devices, and data sources, can you start to extract the real value of AI-based personalization.

To be able to have a truly unified view of the customer, it is crucial to integrate all technologies and platforms that collect customer data. The more tightly the systems are connected, the more effective will your AI system be.

How does AI enable hyper personalisation?

AI leverages your customer data to group them precisely into granular segments, as precise as a segment of one. Once you have such a fine target base, you can begin to create personalized content, deliver it in a targeted way, and help drive engagement. The following are some ways in which AI enables hyper-personalisation:

Predictive Marketing

One of the most important aspects of hyper-personalized marketing is the ability to understand what the customer is likely to do next.

This empowers you to mold your marketing strategy to achieve the maximum results. AI-based analysis (say RFM) can tell you if the customer is about to churn, is going to make a purchase, or needs a little nudge to move down the funnel.

These powerful insights enable you to stay a step ahead and deliver a relevant experience. Netflix’s long list of suggested movies and TV shows is a fantastic example of a personalized user experience which is powered by AI. Check out this list of 10 amazing Predictive Customer Experience Outcomes Powered by AI.

Tailor-made contextual content

Hyper personalization is all about enhancing opportunities to customize the marketing that fits the needs and preferences of your users and target them at the right point in their journey.

With AI insights and tools, you can utilize behavioral and real-time customer data to produce highly contextual and relevant communication.

For instance, AI can analyze factors like customer demographics, current geographic location, the time of the most frequent purchases, and their preferences in communicating with businesses, etc., and provide you with a better picture of how to communicate with them.

While content is extremely important, it is useless if it doesn’t have any context. In other words, hyper-personalization helps content marketers become more proactive about communicating with their target customers because their content will be much more contextually relevant. Implementing effective push notification tools can enhance the contextual relevance of your communication.

Personalized and real-time customer support

Today’s customers look for instant responses and resolutions to their problems.

Real-time customer support is the biggest thing customers look for in a good personalized digital experience.

With the increasing customer base and their expectations, it is not possible to offer this kind of service at scale.

And enter AI chatbots!

This automated tool gives the impression of talking to a real customer service executive in real time, answers basic questions, tracks and fulfills orders, and helps in solving simple issues.

All your users can have their own personal assistant who can remember and utilize the implicit and explicit customer information from earlier conversations and thus learn their individual preferences and situations.

Gartner predicts that by 2027, chatbots will become the primary channel for customer service in a quarter of all businesses. While this can be heartening and concerning at the same time, the fact remains that chatbots are the thing now.

Accurate Attribution

“Most marketers really use reporting, not true attribution,” says Matt Scharf, Integrated Marketing Analytics at Adobe.

To assess the performance of your efforts, attribution is very important.

Understanding the complete purchase path of the customers, knowing which marketing channels are driving revenue, and what kinds of content drive conversion, engagement, and retention, is crucial as well as challenging.

With so much customer data flowing in from multiple sources, it is humanly impossible to connect all the dots.

This is where modern AI attribution models come in.

Using AI services to go beyond traditional attribution methods, you can determine how effective each touch-point is at driving the business KPIs and then calibrate your marketing strategy in hyper-personalized ways. If you know what works for whom, you can treat each user accordingly.

Conclusion

AI undoubtedly has immense potential to drive engagement and conversions for your brand. It is AI-driven hyper-personalization only which will bridge the gap between the physical and digital worlds and separate successful businesses from failures.

To summarize, the whole game revolves around getting a diligent grip over your data, embracing the capabilities AI-based data analysis brings along, applying them, and adapting yourself continuously. Staying relevant is the key to long-lasting success.

Do you want to know how Netcore’s AI-driven cross-channel marketing automation and analytics platform can help you deliver high-quality customer experience through hyper-personalisation? Get in touch with us today!

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Written By: Ritu Poddar