Only 9% of the retailers have adopted hyperpersonalization. There is obviously something stopping the rest from making the move. From the way we market to the way we consume, technology has reinvented all aspects of retail. Today’s consumer seeks relevance and context. That’s precisely whey you need to hyperpersonalize your marketing strategy.
Last year, Toys R Us made an announcement that they would close at least one-fifth of their shops. The increasing competition, changing retail landscape, and the lack of funds required to innovate caused the shut down (Business Insider) According to Dave Brandson, they needed to take some tough decisions to reinvent their brand, along with incorporating a radical business strategy. (Evergage.com) According to BI, it was also important for the company to boost their in-store experience and improve the online experiences if they wanted to compete with the likes of Amazon.
Anyone can sell toys but, someone with expertise in this segment can educate you on what toys to buy. Toys R Us know the toy market better than anyone else. They can tell the users the attributes of the toys better than even their competition, and help the users buy the right products. They should not stop at suggestions; they should help the customer complete the purchase.
Basically, hyperpersonalizaton would have helped them take actions based on the trigger received, thus fulfilling the user’s goals in real-time.
The reasons are pretty clear- changing retail landscape, increasing competition and different needs expressed by the different segments. Hyperpersonalization would give them a better perspective, and make the brands contextual, thus boosting conversions.
Data collected at the customer interaction point combined with the behavioural and demographic data helps the AI and ML systems learn more about the customer’s preferences. It allows them to create the customer profiles, and send them alerts and messages that are relevant to them. this will lead to conversion on proper nurturing. Once converted, new data is collected that is again combined with the historical data and analyzed to update the customer profile.
Brands that have Successfully Adopted Hyperpersonalization
If you are one of those who hate grocery shopping, then you should try Amazon Go. They have seamlessly integrated their mobile app with the in-store shopping to make it more convenient to the user. Understanding the single pain of grocery shopping in a mart, they decided to make tracking the groceries, adding it to the cart and paying for them easy. Enter the store using a QR code, pick the items, add them to your bag, and move out. Your app will add the items
automatically, and you will be charged for the items you have picked from the shop. The technologies at use include deep learning, combined with computer vision and sensor fusion.
Starbucks is known to drive customer experiences through technology. They have adopted hyperpersonalization through deep learning to offer better experiences and gain loyalty of their customers. Starbucks is a goldmine of data. The My Starbucks Rewards Program application was released with an aim to understand the customers better, and offer them reward points whenever they pay via the app at the stores.
The app collects data of the customers online as well as offline, and has been acting as the point of contact for a while. With the historical and new data available on the app, the brand has hyperpersonalized their recommendations and offering. They have even started personalized games for the customers.
Netflix has been suggesting and recommending programs based on your choice of series or movies as well as your browsing behavior. The deep learning method to offer suggestions has helped Netflix improve mobile experiences and engage their audiences in a better way.
This fashion brand understands the customers before personalizing the shopping experience and the clothes for them. the retailer connects with the customers via an app called Kik, which asks the user a few questions. The answers to these questions helps the retailer understand what the customer is looking for. This strategy helps increase value for the users, and boost conversions for the retailer.
Published on Sept. 24, 2019