By Marc Emert, Customer Experience Sales Leader, SAP Africa.
Hyper-personalisation focuses on tailoring marketing to individual customers, with a particular emphasis on customer-centric and data-driven marketing.
It employs advanced technologies such as analytics, artificial intelligence, automation, and machine learning to create tailored value propositions that are relevant and appealing to individual customer needs and wants.
Hyper-personalisation is the key to delivering exceptional customer service.
It enables businesses to be hyper-intuitive, connecting with customers at the right time and with the right information.
According to Forbes, brands that provide a superior customer experience generate 5.7 times more revenue than their competitors.
For example, a customer of Chewy, an American pet food retailer, lost both of her pets in the space of one week.
When she contacted Chewy about returning unused pet food, they not only processed a full refund and picked up the food right away, but they also sent the customer a bouquet of flowers a few days later with a personalized note of condolences for her loss.
Another example is Amazon, which generates more than 35% of its revenue by curating customer experiences through hyper-personalization; for example, on their Kindle platform, where they recommend new books to customers based on previous purchases on their e-commerce platform.
So, what do Chewy, and Amazon have in common?
They connect the dots and use existing data to create tailored value propositions that are relevant and appealing to the needs and wants of individual customers.
What distinguishes Chewy and Amazon from their competitors is their ability to connect with their customers at the right time.
Hyper-personalisation is all about connecting with customers at the right time and with the right information to either identify an upsell opportunity or improve customer experience, fostering stronger relationships, and developing customers for life.
Many pundits have dubbed data the “new oil” of the 21st century, but only a few businesses are truly leveraging it to create unique customer experiences and new revenue streams.
The collection of customer data by businesses will only grow in the future.
Consider Domino’s Pizza, which allows customers to place orders from up to 12 channels via its Dominos Anyware approach.
Customers can place orders for pizza via traditional channels such as the phone, as well as newer social media platforms and messaging apps such as Twitter, Instagram, Facebook, Alexa, and Slack.
As a result, businesses are finding it increasingly difficult to ingest, consolidate, and use large amounts of customer data from multiple sources in a meaningful way that benefits both the customer and the company.
Building a 360-degree view of the customer by consolidating many data sources and engaging with customers in real-time and in a highly personalized manner is even more challenging.
Customer Data Platform, also known as CDP, is the solution to this challenge.
At its most basic, CDP is a piece of software that unifies and organizes customer data from various sources and touchpoints and uses it to drive 1-to-1 personalized customer engagement.
If data is the new oil that businesses can use to generate new customer value, then CDP is the engine that drives hyper-personalized customer engagements.
According to S&P Global Market Intelligence, hyper-personalization influences $87.5 billion in sales through personalized offers that lead to consumers making purchases they did not intend to make when they began the purchasing process.
Customer-centric and data-driven marketing is the key to gaining a long-term competitive advantage, and hyper-personalization is at the heart of it.
This can be a powerful differentiator against competitors and a sure-fire way to create new revenue streams and increase Customer Lifetime Value.