Why does hyper-personalization matter?
Customer expectations have changed
Customers expect brands to use their data to craft more intimate interactions and a more tailored shopping experience.
Failure to provide personalized solutions leads to a lower return on advertising dollars, reduced customer loyalty, lower share of wallet, fewer impulse purchases, and higher product returns from customers.1
2https://www.gartner.com/en/newsroom/press-releases/2019-03-11-gartner-survey-shows-brands-risk-losing-38-percent-of
3https://www.thinkwithgoogle.com/marketing-resources/micro-moments/how-micromoments-are-changing-rules/
4https://us.epsilon.com/pressroom/new-epsilon-research-indicates-80-of-consumers-are-more-likely-to-make-a-purchase-when-brands-offer-personalized-experiences
Organizations are now facing competition from non-traditional digital-first brands
Traditional marketing and business models are becoming increasingly outdated. Companies like Amazon, Facebook, and Google are leading the charge through their use of rich customer databases and personalized recommendation solutions. Digital marketing is also becoming a crowded sector, leading to increased spending in hopes of reaching customers.
To combat the rise of competition, AI-powered marketing offers the ability to make a more meaningful impression on your customers with the limited exposure they may have to your message.
Data and technology enables advanced marketing solutions
Historically, customer data could only be gathered at point of sale. Digitization, however, allows organizations to use collected data to create detailed pictures of customers and gain a deeper understanding of their preferences and behavior.
Analytics and AI-powered technologies enable companies to sift through vast amounts of information in real-time and make insight-driven decisions on the types of interactions to have with customers—for example personalized offers and product recommendations.
Maximizing revenue
- Data-driven content generation
- Detailed product targeting
- Next-best-action / recommendation engine
- Individualized or dynamic pricing
Reducing cost
- Reduced customer acquisition and retention costs
- Workflow automation
Elevating customer experience
- In-moment customer journeys
- 24/7, personalized customer service
- Real-time customer segmentation
- Dynamic landing pages and websites
What is hyper-personalization?
Hyper-personalization is the most advanced way brands can tailor their marketing to individual customers. It’s done by creating custom and targeted experiences through the use of data, analytics, AI and automation. Through hyper-personalization companies can send highly contextualized communications to specific customers at the right place, time, and through the right channel.
As digital marketing becomes more competitive, hyper-personalized marketing provides the opportunity for organizations to meaningfully engage customers, deepen relationships, and improve customer experience. Implementing this type of strategy not only increases customer satisfaction, but also drives brand loyalty, willingness to spend, and overall marketing effectiveness.
How data and AI can power hyper-personalization throughout the customer journey
Targeting customers with advertisements that are truly unique by either including curated products or customer information
Using customer data from past visits, geographic location and preferences to personalize their content
Providing content, product or service recommendations that are tailored to the individual customer’s preferences
Changing the offer, promotion or price customers are seeing based on their propensity to convert
Conversational AI technology learns from customer behaviour and delivers personalized services that can answer specific questions and concerns in real time
Using databases and AI technology to recognize and connect customers from both online and offline shopping channels
Using existing customer data to pre-populate any documents, processes or applications which may be required to improve experience
Providing updates on the status of product shipments, promotions and/or refills based on their purchase history
Using customer purchases, micro segmentation, and geospatial data to send highly contextualized offers and messages
Targeting customers with advertisements that are truly unique by either including curated products or customer information
Using customer data from past visits, geographic location and preferences to personalize their content
Providing content, product or service recommendations that are tailored to the individual customer’s preferences
Changing the offer, promotion or price customers are seeing based on their propensity to convert
Conversational AI technology learns from customer behaviour and delivers personalized services that can answer specific questions and concerns in real time
Using databases and AI technology to recognize and connect customers from both online and offline shopping channels
Using existing customer data to pre-populate any documents, processes or applications which may be required to improve experience
Providing updates on the status of product shipments, promotions and/or refills based on their purchase history
Using customer purchases, micro segmentation, and geospatial data to send highly contextualized offers and messages
Industry use cases
How is AI-powered hyper-personalization being applied in different sectors?
Financial Services Leader
Omnia AI
Financial institutions
“Gathering contextual data drives information about customer profiles, behaviours, and transactions, helping to segment customers and drive more targeted offers.”
Read more>>
Retail Leader
Omnia AI
Retail and consumer
“Being more personalized leads to more relevant offers, and differentiation for customers based on their engagement and investment in a particular brand.”
Read more>>
Public Sector Leader
Omnia AI
Public sector
“Personalization in the public sector is about improving outcomes by understanding a citizens needs better and ensuring that they are given the right service at the right time.”
Read more>>
Health AI Leader
Omnia AI
Health care
“Health care will no longer focus solely on providing care, rather it’ll focus on sustaining the overall well-being of the healthcare consumer.”
Read more>>
Financial institutions
Financial institutions are finding ways to use the vast amounts of data they have on customers to help make informed decisions on product offerings and the customer journey. Deloitte expects financial institutions to continue to lead the way in using advanced analytics and AI to meet the customer’s personal financial needs. Personalized product design, tailored advice and recommendations, pricing optimization, and tactical communication and servicing strategies are just some of the ways hyper-personalization can help future proof financial institutions.
Retail and consumer
The availability of customer data allows marketing professionals to understand their customers’ desires before they even enter the marketplace. Customers are now equipped with the tools to digitize their experience, connecting the online customer experience to their in-store visit through the use of data, analytics and AI technology. Creating these experiences transforms retail from being a shopping destination to a channel for consumers to interact with the brand.
Public sector
Governments have access to data that offers deep insights into the population, which allows them to segment people and tailor services accordingly. Going forward, Deloitte expects hyper-personalization to filter into multiple elements of public-sector services, whether for citizens, businesses or not-for-profit organizations, making it easier for them to access information, and get the support they need.
Health care
Health is a very personal matter, and hyper-personalization can help ensure each consumer is getting the specific information and treatment required and that physicians are armed with accurate patient data. AI can be used a means of sifting through patient data to suggest possible treatment plans and help customers find what they are looking for based on their unique health and behavioral needs.
Where should I start?
Marketing has always been rooted in a brand's ability to create meaningful connections with consumers. Hyper-personalized marketing will become an essential part of any successful strategy as technology-enabled customer data increases, customer expectations continue to evolve, and the marketplace becomes more competitive. Data, analytics, and AI are essential tools in crafting a hyper-personalized strategy that will allow brands to forge deeper bonds with customers and excel in the marketplace. It’s time to start taking things personally.
Key contacts
Nira Sivakumar
AI Strategy Leader, Partner
Omnia AI
nsivakumar@deloitte.ca
Bilal Jaffery
Marketing & AI Practice Leader
Omnia AI
bjaffery@deloitte.ca
Get in touch
At Deloitte, we believe AI has the power to improve Canadian organizations in transformative ways - and we’ll work with you to make your business better. Deloitte’s artificial intelligence practice, Omnia AI, leads all others in starting, enabling, accelerating, and sustaining the AI journey.
Talk to us. You’ll see the difference.