For many, the age of personalization in the field of advertisement and marketing began when they first got the mail that was addressed as “Dear Marry” as opposed to an anonymous greeting like “Dear Sir”. To an extent they are right. Many of us in the world of advertisement and marketing woke up to the power of personalization with the significant success of personalized campaigns as opposed to the generic ones. Since then, consumers have been bombarded with hundreds of promotional messages on a daily basis.
As a result, the consumers have lost the interest and excitement that they once had for such personalized emails and campaigns. It has made it harder for the brands to engage with their consumers on a personal level. Marketers all over the world are working to find an effective solution to all of that and they might have found one in Artificial Intelligence. With the monumental rise of artificial intelligence and machine learning in recent years, their implementation in pretty much every field has been groundbreaking. So, why not marketing?
Now, as we all know, data is at the core of it all. To make an AI implementation work for you, you need big sets of data. The bigger the data set, the more relevant and useful information will we be able to extract. While this marks the beginning of a totally new marketing approach – Hyper-Personalization, it is the end of the road for the segmentation approach. And from the looks of it, hyper-personalization is the way forward.
So, let’s take a closer look at the Artificial Intelligence-Based Hyper-Personalization and how it changes the conventional marketing techniques we’ve all grown up on.
The emergence of big data
“Data is the new oil” we all have come across statements like this more often than we care to count. Mostly in recent times. This significant rise of big data and companies capitalizing on it is the biggest factor behind the meteoric influence of technologies like machine learning and artificial intelligence in every field. The machine learning algorithms, when running through a huge set of data sets, can draw patterns and conclusions in minutes, for which the human brain will need years. It computes consumer behaviors such as their likes, dislikes, their shopping pattern etc making it easier for the marketers to target the consumers.
The feedback loop
One important part of hyper-personalizing the online marketing campaigns is constantly tweaking the consumer details after every campaign. This is done through a feedback look, which is a part of Artificial Intelligences’ self-learning. In simple terms, a feedback look is a simple process which constantly gives feedback on the decisions made by the system. Based on the feedback the AI system learns whether the decisions made were right or not and if they need any tweaking. Depending on the outcome the algorithm is smart enough to tweak itself according to the new data to help marketing teams.
Understanding the difference between Personalization and Hyper-Personalization and
It’s easy to confuse personalization with hyper-personalization if you are just starting in the world of AI. However, they both are totally different. While personalization deals with the personal and transactional data like name, purchase history, and basic profile details, the hyper-personalization is all about the behavioral data in real time.
To help you understand hyper-personalization better, let’s take the example of an online shopping website. You sign up with them, you search for products there, you spend hours finding the right product and then you finally place the order. Now all of those actions you took becomes the data point for that particular website. Now they know your name, search query, your purchase history, and brand affinity etc, an average spend amount, etc. They can use all that information to create a profile for you for a very personalized email, which will only feature things that you like.
Studies have found the hyper-personalized campaigns to be almost twice as successful as the general campaigns. In fact, in the world of e-Commerce, it amounts for the 60% higher conversion rates as opposed to the normal campaigns.
The best thing is that hyper-personalization not only helps the brands, but it incentivizes the brands as well. The consumers are now able to find deals and products at better prices and just in time of need. They get the promotional campaigns for the products that interest them as opposed to a whole gamut of products that might not be relevant to them. It’s a win-win for all.
Finally, with artificial intelligence being the driving force behind the e-commerce world, technologies like hyper-personalization are bound to make marketing a lot effective. So, if you are looking to leverage the power of artificial intelligence for your business, listing it on product discovery platform like Taglr, is a smart step forward. ')}