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What is the Hyper-personalization of Products and Why is It Important?
We live in a digital era where consumers are spoiled with choices. There are new companies coming up every second providing customers with similar and identical product offerings at a lower price. In this cutthroat market environment, companies cannot sell mass products. They have to personalize and customize their offerings as per the needs, tastes, and behavior of the customer. This personalization and customization of the product and service offering is the only way to survive in the business world. The amalgamation of customization with AI and technology leads to the birth of hyper-personalization.
In this article, we will be diving deep into the concept of hyper-personalization of products, how it can be done in the digital world, and the benefits of hyper-personalization of products.
The Concept of Hyper-personalization of Products
The aim of hyper-personalization is to provide customers with a standalone experience. Hyper-personalization takes into account AI and real-time data to show customers content as well as curated product that they would be interested in. It is the process in which companies instead of showing general product recommendations use data like past buying patterns, demographic information of individuals, and current search history and then show products to the customers that they might be interested in. The companies not only customize the message but also the product discovery journey that the customer might take. With hyper-personalization companies are able to increase sales for the company and provide the customer with an unforgettable buying experience.
How can Companies Implement Hyper-personalization of Products?
Hyper-personalization is about creating an experience for the customer. Companies can perform this in the following manner −
Usage of Visual AI − Companies are using the feature of better search and better recommendations to capture the customer’s attention. The real-time data that the company is collecting is used to better understand the customers and then show targeted ads. For example, when we are suing Netflix it keeps all the records of the movies we have watched, we have left in between, we searched for, and is using all this data to create a “recommended watch” page.
Add chat support or personal sales representative − One thing that was missing in online shopping is the assistance of the sales representative. Many found that to be amusing and really helpful. Brands when cam online realize that they are losing their connection with the customer and hence companies can use the 24*7 chatbot system. With this, customers can shop as well as interact with the system regarding their purchase dilemmas. Companies can bond with companies. The one-to-one assistance of a sales representative is good for high price points products and the AI chat support is good for the low price-point product.
Augmented reality − though companies came up with return policies it was not enough. The look and feel of the product were missing. Customers were not sure how the product would look on them and hence were using the physical outlet. AI came up with the solution. Now customers have the option to see how the product will look on them on their phone only. It is an augmented reality created by companies to better serve their customers. Lenskart a company that sells glasses to the customer came up with this approach to boost the online sales of the company. We have many clothes manufacturing companies as well as coming up with this technology on the website.
The Benefits of Hyper-personalization of Products
Can serve customers better − With hyper-personalization companies can show products as well as content that customers might be interested in. Hyper-personalization is like directly speaking to the customer. It is like a sales representative who is constantly assisting the buyer and moving him in the right direction. With hyper-personalization companies are able to create a bond with customers. This bond will not only earn super-normal profits for the company and that too for a longer period of time., hyper-personalization creates customer satisfaction because not only is the company diving into the head of the customer but the customers also feel heard and seen and it is always better to retain customers than to acquire new customers.
Increased sales − Since the companies are pinching the right nerves of the customer we see an increase in sales. The conversion ratio of the company shoots up because customers feel that they need the product. In hyper-personalization companies not only alter the message for different individuals but the product that want to sell. For example, if you are a family man with your parents as well as in the house a car company will show you an ad for a family vehicle, 6 to 8 sitter cars whereas if you are a single individual living alone with a high sense of sustainability and eco-friendliness, the company would show you sustainable and cost-friendly cars to serve your need of traveling.
Companies can get an edge over their competitors − With AI and real-time data companies can understand their customers better and they can also target them better. hyper-personalization gives the companies an edge over the competitors of the local brick-and-mortar stores and companies that are not using hyper-personalization for their customers. hyper-personalization helps the company bonding with the company as well and hence get a loyal customer base. Also with the humongous data companies can develop and plan products that would sell better in the market. Products that are inspired by the customers as well as built for the customers for their needs and desires.
Markets as well as businesses run in a cycle. Earlier it was the production era when customers wanted to obtain goods at the lowest price possible and most of them wanted to have the mass-produced goods to be accepted by society. Now with the rolling of the wheel, we see that customers want to stand out in the crowd. They are ready to pay more for the experience as well as products that are tailored to their need. Hence the trend of today’s business era is the hyper-personalization of products.
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