Boost Your Business with Customized Hyperpersonalization

April 18, 2023

Personalization is different for every retailer and e-commerce company. After all, objectives differ, as do products and customer journeys. So, that requires custom hyperpersonalization, with your own business knowledge and dynamics added. Only then will there be a clear link to reality, allowing personalization to maximize its returns, as a fundamental part of your business strategy.

Personalization is taking off, even in retail and e-commerce, where companies understand the value of providing the right message to the consumer anytime, anywhere. According to Forbes, 89% of digital organizations now invest in personalization. And the required technology? It’s no longer a barrier, as shown in the Consuminded trend report outlining the personalization trends for 2023. But still, does that technology actually deliver what you want?

Make Personalization a Strategic Component

Many e-commerce platforms have personalization modules that are out-of-the-box deployable as standard applications. You can quickly get started with them, although you are using general algorithms. However, an essential element is missing here. The module is not aware of your specific business characteristics. Instead, you are forced to work with a generic algorithm that doesn’t know whether you sell clothing, vinyl records, or books. As a result, it has no idea about the particular customer journey associated with each product. And that’s not even considering your goals, such as increasing customer lifetime value. A generic algorithm won’t address these business characteristics, making it hard to differentiate yourself from your competitors. And that’s undoubtedly what you want.

Connect Personalization With Your Objectives

Let’s start by focusing on your goals, the fundamental questions you ask yourself when achieving your business strategy. What do you want to achieve? What is the main challenge for your specific organization? For instance, many companies struggle to retain new customers. In this case, it makes sense to encourage a second and third transaction in the same quarter to ensure the customer returns. If your business already has many repeat customers, the focus will be on increasing cross- and upselling to boost basket value. Failing to link your objectives to personalization will render it useless and never achieve its full potential. It’s a shame, isn’t it?

Make personalization a strategic part of your business Many e-commerce platforms have personalization modules that can be quickly implemented as a standard application. However, these modules are based on generic algorithms that do not take into account the specific business characteristics and customer journeys that are unique to your products. Therefore, a generic algorithm will not help you stand out from your competitors or achieve your business objectives, such as increasing customer lifetime value.

Link personalization to your objectives To make the most of personalization, it’s essential to first identify your business objectives and challenges. For example, if your company struggles to retain new customers, your objective might be to encourage second and third transactions within the same quarter. If you have many repeat customers, your focus might be on cross-selling and upselling to increase basket value. Without aligning personalization with your objectives, it will remain a trick that never reaches its full potential.

Enrich the Algorithm with Business Input

To enhance the algorithm, you need to enrich it with your business input. This means translating your objectives into product recommendations that align with individual customer journeys. For example, if a customer buys a pair of dress shoes, you might recommend maintenance spray or suggest a different type of shoe, such as sneakers, rather than recommending the same dress shoes again. The algorithm needs this type of input to learn and improve over time, resulting in more personalized recommendations that align with your objectives.

Coffee and Wine: Understanding the Difference

Another example is the difference between coffee and wine. Although both are beverages, the customer journey for each product is different. Customers tend to stick with the same coffee brand and type, while wine customers enjoy exploring new flavors. An algorithm needs this understanding to make personalized recommendations that align with individual customer needs.

Your Knowledge, Your Customizations

Personalization is powerful when applied correctly, and it requires a collaboration between humans and technology. You have unique knowledge of your market and how to win and retain customers. By customizing your personalization efforts, you can meet the individual needs of your customers and achieve your business objectives.”

Are you inspired and eager to get started with 1-to-1 personalization?

Are you curious how your data can be used for a personalized customer journey? Discovermore in our product guide. Prefer to get in contact with one of our experts right away toexplore the possibilities for your organization? Request a free demo.