26th Oct, 2022

How to Achieve Hyper Personalization at an Enterprise Level

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How to Achieve Hyper Personalization at an Enterprise Level

 

Marketing and product teams have heralded personalization as a game-changing capability for their brands for close to a decade. After all, most consumers are more likely to engage with a company that sends them information they actually want.

Hyper personalization has the potential to drive brand loyalty, increase customer engagement, and make shopping experiences much easier.

Here’s how your marketing team can join in on this rising trend.

What is Hyper Personalization? 

The average person is exposed to upwards of 4,000 brand messages each day, making it more critical for brands to ensure theirs are meaningful enough to break through the noise. Hyper personalization is the key to doing that. It uses artificial intelligence (AI) and machine learning (ML) to create content for individual consumers.

AI can sift through large amounts of data, while machine learning systems can show which methods of communication would be the most effective for specific targeted groups. Using these tools in tandem empowers marketers to create more effective campaigns that send the right message at the right time through the right channel. An added bonus: hyper personalization can lead to deeper relationships with existing customers as well as attract and build relationships with new ones.

Segmented Personalization vs. Hyper Personalization

For years, marketers leaned on segment personalization as a means to build relationships with customers. Using segmentation techniques, marketers refine messages for consumers according to broad demographic or psychographic characteristics such as gender, age, or geographic location, or according to shared likes, dislikes, and activities.

However, this method lacks detailed information and often prevents organizations from achieving deeper levels of personalization. Hyper personalization takes segmentation to the next level. Consumer data gathered throughout the customer journey, combined with information from external sources and databases amassed from years of customer communications, can enable organizations to predict what consumers want and deliver it before the customer can consider a competitor. 

An additional benefit of ​​hyper personalization is that it can be applied at any stage of the customer journey. This means organizations can draw in new audiences with customized ads, emails and product pages and follow-up with personalized recommendations after a purchase is made. With 80% of customers reporting they are more likely to buy from a company that offers personalized experiences, it only makes sense to provide the most individualized journey possible. 

The Challenge for CMOs

But let’s get real: creating a personalized experience for every customer seems like a completely unrealistic goal. Yet that’s exactly what CMOs are now being asked to do.

As the world switched into a digital-first mindset, CMOs now face immense pressure to adopt more modern approaches to marketing. And this, of course, has introduced a slew of new challenges, including:

  1. Changing consumer expectations
    The COVID-19 pandemic highlighted how quickly the advertising landscape can change overnight. While AI tools exist, CMOs still need to develop strategies to ensure their teams can seamlessly pivot campaigns.
  2. Increased competition
    With traditional business models becoming outdated, many companies are feeling increasing pressure from newer competitors that offer lower price points or more innovative customer engagement approaches. Additional features and product lines might help, but it is costly and does not guarantee success. Instead, turn toward existing data to determine where a company excels with its customers.
  3. Proliferation of data
    Customer data is no longer collected by outdated systems, like point-of-sale surveys. AI-powered marketing technology allows marketers to gain a deeper understanding of the preferences and behaviors of potential buyers. It also grants marketing teams the ability to effectively sift through massive amounts of data in real-time, meaning teams can make faster, more accurate insight-driven decisions.

These stressors highlight how important it is for organizations to excel in today’s marketplace by adopting a hyper-personalized marketing strategy and exploring the ways data, advanced analytics, and AI technology can be embedded throughout the customer journey to generate new levels of industry-specific customer insights and action. Organizations that wait on adopting hyper-personalized experiences may soon find it harder to attract and retain loyal customers.

Where to Start With Hyper Personalization

Now that you’re more aware of the benefits of hyper personalization, a new question arises: How do you get started? The methodology is straightforward, with data-driven decisions leading the way. 

1. Deeply understand your customers

Understanding your customers relies heavily on data, whether collected by your organization on its own (also known as first-party data) or purchased from a third-party organization.

First-party data can be collected via online and offline channels, and includes website visitors, social media followers, email subscribers, and customers. Organizations like Persado also use first-party data to drive our AI-generated content production. 

As data security faces increasing scrutiny, first-party data is a useful way to gain trust from your customers while still gaining valuable insights. In fact, a 2022 survey of data marketers revealed that 41% of respondents planned on increasing their dependency on first-party data in the upcoming year.  

2. Identify data and technology needs

Organizations should begin gathering and optimizing their consumer data. This makes it easier to identify areas where current methods of data collection are falling short. For instance: 

  • Are there specific areas of the customer journey where no viable information is being collected?
  • Is your current method of data collection outdated, leaving out critical, valuable insights that would help the decision-making process?
  • Are you collecting clean data, or are you having to manually cleanse it on your own?

Hyper personalization relies on cloud-based technologies that have powerful database management capabilities. These tools need to collect relevant data, provide real-time access from anywhere in the world, and allow scalability so users can seamlessly adapt to rising demands. In order to minimize the burden on smaller organizations, companies like Persado can assist in creating hyper personalization strategies.

3. Formulate a personalization plan

During this stage, organizations should begin creating a roadmap for success. It is imperative to know which personalization elements should be implemented before any content generation begins, along with when the messaging should be delivered and which channel of delivery it will take. 

But take heed: You should ensure you choose the solutions that make the most sense for your branding, customers, and industry. The messaging for entertainment venues is radically different from the messaging for hospitals, for example. Just because an approach works well for others does not mean it will work well for you.

4. Generate and deliver content

Having the ability to scale hyper personalized content across touchpoints, channels, and customer segments takes the content generation process to an entirely different level. 

AI already allows organizations to accurately predict which types of content will perform the best on certain channels. With the Persado Motivation AI platform, high-performing hyper personalized content can be delivered in mass quantities.

5. Test and analyze

After your targeted campaign begins, it is important to measure how successful it is. Focus on the metrics that directly impact your bottom line. Look for elements that translate to other channels or campaign types and test them to see if they are effective elsewhere.

Benefits of hyper personalization 

A recent study from McKinsey revealed that 71% of customers expect personalized experiences. The benefits for hyper personalization continue from there.

1. Get the Most Out of Your Marketing Spend

Hyper personalization eliminates the need for guess work, meaning teams do not need to waste efforts on prospects who are unlikely to ever convert. By utilizing hyper personalization, marketing teams are more likely to reach their target audience on an earlier attempt. Once you have the information you want and need, you can further strategize from there.

2. Maximizes Your Revenue 

Hyper personalization helps drive online sales because you can provide customers with more accurate and relevant recommendations. This enhanced customer experience is more likely to capture consumer attention and allows your brand to stand out as an organization that aligns with consumer interests and lifestyles.

3. Improves Your ROI 

Automation tools save time and energy, but hyper personalization has the added benefit of also providing more relevant experiences for your customer base. Improving brand loyalty among customers is always a goal; professional services firm Deloitte reported hyper personalization can deliver an ROI of anywhere up to 80%.

4. Boosts Customer Experience

By combining data, analytics, AI, and automation, your brand can create authentic, relevant interactions with customers at a larger scale. Hyper personalization gives you the ability to provide what feels like personalized care, but at an enterprise level.

5. Gives You A Leg Up Against Your Competition

Being a digital-first brand isn’t a nice-to-have; it’s a necessity. Hyper personalization gives you the ability to match your customer’s specific pain points with your specific solutions. This direct approach minimizes the amount of time a customer spends comparing your products against those of a competitor.

Successful Examples of Hyper Personalization

Michaels wanted to create personalized campaigns

Here are several examples of how companies have incorporated hyper personalization into their marketing strategies, along with some of the measurable results they achieved.

Michaels

  • Craft store giant Michaels wanted to create more personalized campaigns in order to build stronger relationships with customers. In particular, the company wished to focus on SMS, Facebook, and email outreach efforts.

Results: By utilizing the Persado Motivation AI language-generation platform, Michaels was able to:

  • Advance email personalization from 20% of campaigns to 95% of campaigns
  • Increase engagement and loyalty by amplifying CTR to 41% in SMS campaigns
  • Lift engagement and loyalty by increasing email campaign CTR by 25%
Vanguard personalize customer messages at a larger scale

Vanguard

  • As one of the world’s largest investment companies, Vanguard’s clients are their top priority. Its institutional division, Vanguard Institutional, primarily serves retirement plan sponsors. To ensure their clients are receiving the content they need, Vanguard needed to find a solution that could personalize customer messages at a larger scale.

Results: Vanguard partnered with Persado to deliver relevant and meaningful content to clients and prospects. As a result, they:

  • Uncovered the exact phrases that resonated with customers
  • Learned how to position messages with the right formatting, emotion, and functional CTA
  • Identified opportunities to incorporate data-driven insights into the marketing mix
RappiCard turned to Persado for hyper personalization at scale

RappiCard

  • RappiCard is a digital-first financial services business. As a primarily digital company, they have to think differently about how they can engage current and new customers. One of the company’s marketing challenges came from how they wanted to showcase one of their products: a new credit card that could transform the way financial services are delivered across Latin America.

Results: RappiCard turned to Persado for hyper personalization at scale. As a result, the financial company was able to:

  • Pinpoint the messages that engaged customers, avoiding inefficiency and subjectivity
  • Smash their goals with 250,000 new cardholders in the first six months
  • Get triple-digit lift in conversions and actionable insights for future campaigns

Language is the foundation of hyper personalization

Organizations need to implement hyper personalization to effectively adapt to today’s digital-first mindset. It’s no longer feasible to target customers based on traditional segmentation; messaging needs to be altered across content types, channels, and audiences.

The Persado Motivation AI Platform provides organizations with an easy way to generate hyper personalized language that motivates consumers to engage and act. Equipped with the world’s largest customer motivation knowledgebase comprised of data based on 1.2 billion consumers and their 100 billion interactions annually, allowing us to accurately interpret the structure and impact of messages. 

If your team is trying to determine the motivating factors that drive consumer behavior, Persado can create AI-generated language strategies that drive significant revenue lift. Our solution experts are ready to start a conversation.

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