In the emerging market trend, personalization has become popular in recent years. It is because of the profit the businesses make with the personalization and improving customer experience. The approach of hyper-personalization has come into the picture which is more into making people feel special and will help retain them. Digital marketing has become an effective move in marketing your products and services. This article let us learn more about the strategic approach of hyper-personalization and its market size to gain more profitability with targeted advertising.
What is Hyper-personalization
Hyper-personalization is a marketing strategy that uses AI together with machine learning to collect unique, personal, and specific data of each user of an online platform. The data collected is then analyzed by the brand’s data analytical tools which are personally designed to send curated messages and advertisements. It is beyond the task of addressing the customer with their names and aims and sending the right and recommended content at the right time. Examples of this marketing strategy are – customized home pages of Amazon, curated recommendations of Netflix content, and social media adverts on previously searched content.
Difference between personalization and Hyper-personalization
It the important aspect to learn the difference between personalization and hyper-personalization as hyper-personalization is far more advanced than personalization. In the case of personalization, the company aims to gather data that is based on user interaction and the history of search or order. They then analyze the data to understand the behavior of their customers and hence will send them messages or emails that are more relevant to their customer’s choices. This will enhance the user’s interest and also save time in searching the products.
Whereas in the case of hyper-personalization, it is more than the traditional personalization approach. This is because hyper-personalization depends on analysis of the real-time data and hence will be more accurate or near to what customers exactly are looking for. In the case of personalization, it uses the data gathered from the history or past order and may not be that effective. Due to several reasons, a customer might not be looking for it currently or have bought from a different platform or source. Hence hyper-personalization is more about using real-time data to improve the level or quality of customization for a better user experience.
Hyper-personalization market analysis
Hyper-personalization market size is expected to grow at a faster rate as all industries are using the advanced marketing approach in their business model. The valuation of hyper-personalization globally in 2023 was USD 18.9 billion and foresees to meet USD 74.82 billion by 2033. It is also estimated to grow from 2014 to 2033 at a CAGR of 14.75%. This is because of the increased focus on the individual customer experience and recommendations that are personalized. Hyper-personalization is also dominated by e-commerce segments with decent market revenue here some of the lead players in the market are PepsiCo Ltd, IBM Corporation, Oracle Corporation, Amazon web services, Google LLC, Microsoft Corporation, Infosys Ltd, SAP SE, and many more.
Challenges and Future Trends
Businesses will have to gather unique and personal data about their users for analysis it will have to address the concerns that will be related to data privacy and security. This is one of the most common challenges for every company that uses e-commerce and digital platforms for their sales and marketing. Automation has a major role in hyper-personalization but one must also balance with the human touch as it is essential in connecting the people.
The future enhancement can be integrated with voice technology to use voice-activated devices and chatbots that will encourage customer engagement and assistance will also become easier. The brands can also make utilization of AR to create visualization effects of the products to the customers.
Conclusion
To conclude, with the use of advanced technology and effective marketing strategies, one can crack this competitive market dynamics for increased profitability. Hyper-personalization can be the best technological approach in marketing for improvised and better customer experience which will in turn increase sales and revenue generation for the organization. The user’s expectations are high hence working on them and achieving them will help the businesses to sustain in the market.