A common strategy used in various recommendation systems is the personalizing of products and services to better meet needs of each and every customer. Integrating personal and basic data points like name, location of purchase, and birthday into communications/emails is definitely a good practice but not good enough to improve customer’s interaction with the brand and gain loyalty. If a marketer advertises the same message to a wide segment of customers, it creates little or no customer interest for that brand because customer’s expectation from brands is the delivering of just the right message every time without crossing the limits of user’s online privacy. On one hand, the traditional personalization approach uses basic customer data points to catch the attention of the customer, limiting itself to easy tactics like using the customer’s first name in the subject line to address them in emailers or other communication. On the other hand, hyper-personalization moves a step further by using real-time data points to deliver more appropriate communications/messages to consumers, effectively re-evaluating the interaction with customers on an individual basis, where each and every customer is considered unique and a customized experience is designed for each one of them.
This study starts with a discussion of literature on personalization techniques, with significance and pitfalls of personalization. It then presents an overview of hyper-personalization explaining its benefits over traditional techniques such as:
Hyper-personalization helps in creating a clear and simple shopping experience for the consumers by reducing their effort required to get what they are searching for.
It removes the problem of “choice-overload” by giving customers only those options that they actually are interested in.
Finally, to address pain points of customers and save their time, there is a need of delivering hyper-personalized information to them instead of the generic one.