We’ve all seen it. You open an email, and it says, “Hey [Your Name]!” This kind of personalisation has been around for a while now. For modern consumers, just getting their names right isn’t going to cut it anymore.
This is where hyper-personalisation comes to the fore. Businesses use data to go beyond these surface-level personalisations to offer customers something meaningful and unique.
This next-level personalisation is shaping the future of eCommerce. Let’s explore how.
Personalisation vs Hyper-Personalisation
Let’s just flesh out the differences a bit more here between the standard types of personalisation we’re all used to and the newer transformative hyper-personalisation we’re now seeing.
Personalisation – Recommending products based on purchase history, including names in emails and other communications, etc.
Hyper-personalisation – Instead of just relying on a few basic personalisations and relying on past behaviour to make recommendations, hyper-personalisation pulls data from a ton of sources. Consider things like browsing habits, real-time interactions, and even external factors like the weather. The idea is these data points can help curate a shopping experience tailored to you. When done well, it feels like the store gets you.
How Businesses are Implementing Hyper-Personalisation
It’s always best to ‘show’ rather than ‘tell’, right? Several major brands are transforming how they engage with customers. While not the subject of this blog, a lot of these new capabilities are fuelled by recent advances in AI and its ability to analyse audience behaviour for insights. Thanks to generative AI, these companies are offering uniquely tailored experiences that help build deeper customer connections.
Amazon
As an ecommerce behemoth, Amazon has a lot of data at its disposal. It’s leveraging this to drive hyper-personalisation.
Rather than simply recommending products based on a shopper’s previous purchases, Amazon’s algorithms analyse browsing behaviour and regional trends to create highly tailored shopping experiences.
For example, let’s say a customer has been looking at camping equipment. Even if they don’t buy, Amazon will suggest similar items as well as products specifically suited for the region’s current weather or popular outdoor activities. The idea here is that Amazon is anticipating customer needs and therefore encouraging greater engagement.
They may even send emails with these recommendations to encourage users to come back to the store to get what they need. This level of personalisation ultimately increases conversion rates.
Netflix
Customers going down a Netflix rabbit hole is no accident.
Netflix uses algorithms that take into account not only the genres and shows users have watched but also the time of day they watch, their viewing patterns, and content trending in their location.
By offering these highly specific suggestions, Netflix makes each customer feel as though the platform is built uniquely for them. This strategy ensures users spend more time on the platform, exploring personalised content, which in turn boosts retention rates and long-term customer satisfaction.
Starbucks
Starbucks’ mobile app is a great example of hyper-personalisation in action. The idea is each customer gets a tailored experience based on their customer data (notice a theme here?)
The app makes recommendations, such as suggesting a new seasonal drink or adding a pastry to your go-to coffee order. Your previous habits, combined with what is popular for others, will inform these customisations.
By offering relevant, timely recommendations, Starbucks hopes to turn casual customers into regulars. The app experience feels like Starbucks always anticipates -and then meets – your needs.
All three major players above show that hyper-personalisation is about more than just selling more stuff. The primary purpose of hyper-personalisation is to connect with customers and forge that relationship. Of course, this then paves the way to better sales.
The Ethics of Data that Drives Hyper-Personalisation
This level of personalisation is impossible without data collection.
Customers are getting more savvy about their rights as data sources. Privacy concerns are increasing. Regulations like GDPR mean businesses must be transparent about the data they collect and how they use it.
This is not a Big-Brother-esque warning. Instead, the lesson here is to remain aware of the basic fact that customer loyalty is built upon trust. Customers need to know that their data is being used to improve their experience. Don’t let them down.
Making It Work for Your Business
Here are a few tips for how to get started with hyper-personalisation for your eCommerce business.
- Get started with the basics – There’s nothing wrong with sticking to standard personalisation and experimenting without going overboard. Use product recommendations based on browsing or purchase history.
- Use Dynamic Content – Platforms like Klaviyo let you create personalised email flows based on customer behaviour. You can adjust what content they see in real-time, making sure it’s relevant, engaging, and aligned with your branding.
- Respect privacy – Let your customers know how you’re using their data. Give them the option to opt-in for personalisation. Make it clear you plan to enhance their experience, not bombard them with evermore ads.
- Cross-channel consistency – Customers want a consistent brand experience wherever they encounter your brand. So, the experience should feel aligned with your website, app, or via email. Using a platform like Dynamic Yield helps to personalise the customer journey consistently across all touchpoints.
What About Small Businesses?
Let’s just point out that hyper-personalisation isn’t just for the big guys with big budgets. Even if you’re running a smaller eCommerce store, you can still implement these strategies without burning a hole in your pocket.
Platforms like Klaviyo and Mailchimp offer reasonable prices for personalised email campaign packages. Shopify and Maropost both offer AI-driven personalisation as part of their offerings for eCommerce businesses.
This tech is accessible and at your fingertips, but we know that it can be intimidating to unpack the potential of hyper-personalisation for your business. If you need help getting started, someone at Donohue can guide you through the process.
The Future of Hyper-Personalisation in Ecommerce
Hyper-personalisation is only going to get smarter. In the future, we’ll likely see even more advanced data usage, with brands able to predict customer needs with increasing accuracy and intuition. It’s all about creating an engaging and personal shopping experience.
The risk is that businesses that don’t offer this level of personalisation will seem stale and unhelpful by comparison.
Reach out to the eCommerce experts at Donohue Consultancy, and let’s chat about how hyper-personalisation can transform your eCommerce business.
