Future of CX

4 steps to bring hyper-personalization in your customer experiences

Engati Team
.
Apr 28
.
9-10 mins

Table of contents

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hyper-personalization in customer experience

Personalizations is not a thread, it’s a marketing tsunami -Avi Dan

Pre-Covid , I had the opportunity to attend several events and workshops. Of course, one of the prerequisites for going to an event is signing up for the event management and ticketing platforms. I immediately thought at this was just a one way ticket to spam city. But I wanted to support my local talent, so I decided to go through the process. 

Countless messages of these “events that may interest you” emails began popping up in my inbox. It was overwhelming, and with all of these random suggestions coming in, I missed out on some hidden gems. 

“Alright, Events platforms, to the promotions tab you go,” I said to myself. 

It was a dull Friday night so I decided to pay a quick visit to my promotions tab, where I began to realiaze  that some of these events emails I was receiving began to align with my interests. Taking a leap of faith I jumped into an event.

Now ask yourself this, this email motivated me to attend the event, but is it enough for me to stay? 

As the famous billionaire Jeff Bezos said -


“We see our customers as guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.”

What is the difference between Personalization & Hyper-personalization?

Personalization is receiving the email to push me towards going to an event. However, as a first-timer and a stranger, I might feel a little lost and confused about what to do. If someone or if I got an email telling me to check out certain kiosks, I’d have more motivation to stay. 

That’s what hyper-personalization is. It goes beyond personalization and uses real-time data to communicate information that’s relevant to the customer contextually. 

The emergence of big data makes hyper-personalization easy. Brands can now extract information like needs, expectations, and demands through behavioral data. Brands can also discover a customer’s personal preferences using these technologies.

Is hyper-personalization needed? 

According to The WealthTech Book, “hyper-personalization promises to deliver higher client satisfaction at lower cost.” Current digital offerings underwhelm the current age of the highly-empowered buyer. 

Combining this with the fact that mobile devices have created a monopoly on how people people receive information advises brands that they can capture alot of  leeds through better and  effective communications
“Every second Counts” Customers Tend to focus not more than 8 seconds on a brand’s post. 

Unfortunately, most customers see is an overload of information that ditty buyers out. In fact, according to TrackMaven. user engagement with content has decreased by 60%,. Whereas messages with offering that align more closely with customers interested tend to generate spikes in lead conversions. Data like name, title, organization, and specific interests layered with real-time information like demography and location is able to provide more insights for a more hyper-personalized customer experience.

How to build a hyper-personalized framework?

A well-integrated framework of tools and processes is all you need to master hyper-personalization. 

The 4 steps of hyper-personalization
The 4 steps of hyper-personalization

1

Data Collection

An IBM report states 80% of customers feel like brands fail to understand them. Without data, it’s impossible to understand who your customers are, what their needs are, and how to address them. 

When it comes to data collection, there are 5 stages of personalization maturity.

  • Stage 1: No dataWhen you have data, or the data you have barely scratches the surface.
  • Stage 2: A peek into mass marketing This stage is when you collect customer data, but seldom use it. Usually, companies at this stage of personalization maturity dip their toes into email marketing campaigns and open-ended broadcasts.email marketing campaigns and open-ended broadcasts.
  • Stage 3: Slowly getting thereWhen you collect customer data and perform basic A/B tests to improve sales. 
  • Stage 4: Segmentation Collection of customer data and segmentation of existing and prospective customer base.several companies fall under this phase.
  • Stage 5: The ultimate hyper-personalized experienceA collection of rich customer data can be used to treat every customer individually through behavioral recommendations, omnichannel experiences, and predictive analytics to recommend products and services.This is where companies strive to be. The simplest way to collect customer data is through conversation.Use a conversational chatbot to capture customer data in real-time. If you integrate your chatbot with Google sheets or with a CRM, you’ll gain better transparency to understand your market as well.
2

Customer Segmentation

Moving on to Stage 2 -  Data Collection provides insights into how customer tend to engage with brands. Showing us that certain groups of customers engage in particular ways. Helping in identifying pattersns and trends of certain groups expanding our strategy to meet the needs of different customers.  

 

Segmentation is the process of dividing a company's target market into groups of potential customers with similar needs and behaviors.Most companies group customers that are in a similar location have similar demography, needs, average spend, and satisfaction scores together. Allowing us to target each segment with specific messages.

3

Targeted Journeys

After creating segments and identifying each group’s needs, you can move ahead by targeting the segments. Eyeing channels that are most active and their respective timings having relevant and hyper personalized marketing the better rate of conversion.

4

Measurement and Analysis

Campaigns require regular attention. Constantly  monitoring and measuring the effectiveness of it Avoid looking at vanity metrics such as likes and shares. Take a closer peek at more actionable metrics instead. 

Understanding these metrics and conducting an analysis on their effectiveness, providing a better understanding of what worked, works. And what didn’t, it also provides insights on what to focus on while running a campaign.‍


Keys to successful hyper-personalization

 keys to successful hyper-personalization

3 keys to success with hyperpersonalization

Inorder To make hyper-personalization work, A data-driven approach should be followed. Every click a customer makes, post scroll are all valuable pieces of data that can help you create an experience tailored to your customer.

Important Considerations :-

Engagement

According to research by the Epsilon Group, 80% of customers are more likely to purchase when a brand offers a personalized experience. One of the respondents reported that hyper-personalized campaigns almost tripled and quadrupled customer engagement. They also noticed a jump in registration. Key  takeaway of this research is collecting and analyzing data at every point of the customer journey and observing trends to discover how to optimize the hyper-personalized customer experience best. 


Relevance

What makes Spotify and Netflix so popular? Is it their vast library of media, or could it be because they know exactly what to market and whom? Their recommendations are always on-point because Netflix and Spotify knows to to effective segment and target their customers. Using behavioral data and real-time insights, they know how to create messages to alter customer needs and provide a personalized experience.

Trust 

The final and most crucial factor is trust. Data Collection requires attracting the trust of customer.  This can be subjective to the region. Certain countries are less interested in hyper-personalized marketing because they feel it might be invasive. When you collect insights and find that this is the case, it’s best not to market to this crowd. 

Besides, customers will only gravitate towards brands they trust the most. Try to share content that contributes to your credibility. As an example, you can blast educational content like how-to’s, insights from thought leaders, and videos that align with your customer’s needs.


How hyper-personalization ties in with localization

How hyper-personalization ties in with localization
Key Requirements of localization

Localization is about sending the right message, to the right customer, at the right time and in the right place. localization looks at particular markets based on regions and creates messaging using local images and languages. An excellent example of localization in action is with McDonald’s. Hyper-personalization, on the other hand, targets very specific users, 

Localization is adapted for each region. For example, in the Middle East, pork-derived products aren’t served at all. Another example is India- the population of vegetarians in India is incredibly high, and there’s also a low population of people who eat beef. It would be nonsensical to provide an American menu where the star of the menu is beef. What McDonald’s did instead was a complete redesign of the menu with more options of veggie burgers. 

Localization is quite similarIt’s about using real-time data about specific markets to create products and services that feel unique to the region. Going back to McDonald’s, that’s why there’s a lot of appeal amongst travelers to visit each Mcdonald’s in the place they’re visiting. 

Another example is Starbucks. There’s a summer menu filled with iced coffees, lemonades, iced teas, and frappuccinos, and there’s a winter menu with hot coffees and spiced teas. Starbucks is worldwide, and their pumpkin spiced lattes cause an uproar from October to around January. But does it make sense to advertise that latte to those in the Southern Hemisphere who are just about to experience hot breezes and summery nights? Starbucks instead sends coupons and deals and messages that follow the summer menu. 

Think of localization as utilizing real-time data about individual markets to create hyper-specific content or offers that feel unique.


Achieving hyper-personalization with localization

Hyper-personalization in tandem with localization is the future of marketing, but only a small handful of brands leverage this strategy. Here are a couple of ways on how to deliver hyper-personalized content at a scale.


Localize your webpages

As the digital world becomes smaller, our reach becomes more global. However, offering a single-language website closes many doors. According to this research paper, 60% of shoppers rarely make purchases from English-only websites. 

Content translation is needed to allow brands to connect with their shoppers. Incorporate geolocation or plugins that allow your website to change language depending on the user’s browser history and update your content. Take it a step further and changing the currency as per the location.


Multilingual chatbots

Another easy way to implement hyper-personalized messages is through multilingual chatbots. Chatbots provide a straightforward path for both leads and customers to navigate through websites. And having a tool that communicates in a customer’s preferred language in real-time is extremely powerful. 

Instead of having customers drift away and into the arms of a search engine, a personalized chatbot can either resolve a query or direct the conversation to a live agent, this then builds both trust and credibility. Multilingual chatbots can also be used as a data collection tool. They can gather feedback, collect information like name, contact details, and discover customers’ interests. This data can fortify your hyper-personalization strategy. 

Chatbots have infinite memory, so the next time the same user lands on the website, the chatbot can deliver a hyper-personalized message along with recommendations tailored to the customer’s interests providing a hyper-personalized customer experience.

Predictive analytics and recommendations

As customers engage with your digital real estate, i.e., your chatbots, your website, etc., they’re revealing pieces of information to you. You’ll gain an insight into your customers’ lives, like their interests, preferred messaging channels, etc. This is all you need to master hyper-personalization with localization. Amazon, the world’s biggest eCommerce giant, uses this technique, contributing 35% of sales on the platform since 2013.

The Amazon technique

Say your prospect is a 30-year-old man who opens his laptop every day at 3 pm and browses through your website. He usually stops at the “what’s new” category and then moves to “electronics and appliances.” Through these interactions, you can predict that he’s probably a techy. 

Since your chatbot has picked up his age, you can assume his preferred method of communication is email. A few minutes before 3, you can send an email with recommendations of the newest electronics for him to browse through. So that at 3, he already has an idea of what he wants to buy.

Adopt the hyper-personalized approach today

Engati's multilingual chatbots and our rich analytics can increase the transparency of your data to create a hyper-personalized campaign.
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