The Covid-19 has forced countries across the globe to implement restrictions to the public such as social distancing. The social distancing measures are going to stay with us even in the post-Covid-19 time. With people becoming socially distant, their buying behaviors are also witnessing a great change. Therefore, marketers are in search of new marketing tactics to better communicate with the consumers.
The age of individualism
Individualism and personalization were already on the radar even before the Covid-19 days. The companies were starting to realize the value of letting customers create their own unique product. It was also being observed that consumers that use customized and personalized product are more likely to be loyal to the brand. The social distancing time has only accelerated consumers’ choice for personalized products. Hyper-personalization is all about creating unique experiences to each individual consumers, so that their every requirement is fulfilled on a personalized level. These brands have taken personalization to the next level:
Amazon’s product curation and recommendation algorithms are one of the best in the world. It helps individuals to scroll through products that are related to their tastes and likes.
Pull&Bear is a clothing retailer that uses navigational approach to personalisation. Rather than using cookies and user generated data to filter products, they use navigation technique. Customers can navigate through different options on their website to buy a personalized product.
Byju’s is India’s largest K-12 learning app and its personalization engine helps create one-to-one learning experience. Byju’s has its own analytics system which capture millions of data from users every day.
Netflix is the world’s largest subscription streaming service. Netflix creates unique experience to its individual subscribers. There is also a percentage match indicator which allows users themselves to analyze their preferences.
Hyper-personalization requires data, more data and a lot more.
Consumer data is a prerequisite for personalization. Hyper-personalization requires huge amounts of data. Getting insights from large amounts of data can be difficult. There are many customer data platforms (CDP) that helps marketers in getting actionable insights. These help them to segment, target and involve their customers.
Many studies have shown that hyper-personalization leads to increased brand loyalty and therefore, revenue. According to McKinsey, personalization can reduce acquisition costs by 50%, increase revenues by 5-15%, and increase the efficiency of marketing spend by 10-30%. In the time of social distancing and many such measures coming and lingering for time unknown, it is expected that consumers will prefer more for personalized products.