Hyper-personalization. A shopping experience tailored to each customer.

Hyper-personalization is not a new concept; neighborhood store owners have been treating their customers in a hyper-personalized way for as long as retail has existed. However, it was not possible to replicate hyper-personalization at scale. That is, on the one hand there was the esteemed sales clerk who knew too much about our lives, and on the other, the large chains that massively sorted customers into large groups using basic information such as gender, age, marital status and, at most, purchasing power. It can be said that the most advanced ones generated a dozen buyer personas. Today, CRMs and CDPs (Customer Data Platforms) help us collect and store all kinds of data on our customers, all the interactions we have with them from pre-purchase to post-sale. Now, all possible channels for data collection must be taken into account: social networks, call centers, presence in the physical store, e-commerce, e-mail, participation in banners, etc. Let’s remember that the customer is one, and the channels – as well as our challenges – are many. The good application of a CGP gives us the possibility to know in detail each person and the moment they are living.

Having a unique experience is already a customer expectation, as evidenced by a study by Salesforce in which 51% of respondents say they expect companies to anticipate their needs and make relevant suggestions at the point of sale. According to BCG, customers who experience a personalized shopping experience are 110% more likely to add more items to their shopping cart and 40% more likely to spend more than expected.

As tools for implementing hyper-personalization, in addition to the CRM we already know, the growing use of CDP (Customer Data Platform) platforms associated with AI algorithms stands out. The objective of CDPs is to accumulate all customer data from as many different sources as possible in a single data model. Advanced mining techniques such as clustering, collaborative filters and content-based segmentation are applied to this model to define which products, approach or experiences to offer to this customer at that moment.

In online channels, product recommendations and advertising are personalized. In physical retail, the salesperson is responsible for consulting the customer’s profile in their CRM and acting on each profile. In addition to technology, the work process and training of the team are essential for the delivery to be at the expected level

Nowadays we find ourselves in a scenario where the new reality must pay attention to the details of the new consumer, who expects his experience at any point of contact with any brand to be a real hyper-personalized experience, and brands can offer this with the correct use of Data.

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