Article: The Key to Hyperpersonalization based on Data Value-Driven Experiences

10/18/2024 by Leonardo Chaves, CEO infinity6
#businessAI #infinity6 #AI #artificialintelligence #hyperpersonalization #datadriven

The foundation of hyperpersonalization, or even basic personalization, lies in behavior. While this is not new, it is crucial to highlight that behavior is an extremely volatile data point, as it is intrinsically tied to human nature, with all its complexity and diversity of desires, needs and preferences. When discussing the requirements for a highly accurate hyperpersonalization process, data must be regarded as the main driver of efficiency. However, it is not just about having data or building a data lake; the strategy for extracting and orchestrating data is making it intelligent enough to drive decision-making. That is the essential requirement.

Data quality is not solely about volume (though that is important), but rather how everything connects within its own ecosystem and the broader external ecosystem, as no company stands alone in the value chain for its customers. This type of connection enables a shift from a rearview personalization perspective, which is more analytical, to a binocular view: more predictive and prescriptive. This is the key to creating truly differentiated experiences.

By focusing on the customer perspective, personalization aims to meet the expectations of the modern consumer, who demands more tailored interactions and wants companies to understand and fulfill their desires. We are in the age of convenience! Consumers do not want to waste time shopping; they want to solve a need. And if they can do this in the most optimized and efficient way possible, freeing up time for what they truly enjoy, that is likely the best experience you can create. It is important to note that people expect personalization, not individualization. It is not about individual context, but addressing individual needs within a broader social and collective context.

“Consumers do not want to waste time shopping; they want to solve a need. And if they can do this in the most optimized and efficient way possible, freeing up time for what they truly enjoy, that is likely the best experience you can create.”

When designing hyperpersonalized journeys, companies often overlook that this journey exists within a value chain: the system that creates, executes and delivers products and services. In this sense, when discussing hyperpersonalization and meeting expectations, creating an amazing experience is futile if the value chain does not align with the same concept. For instance, we could build an incredible product recommendation experience within a marketplace, but if the logistics process takes 35 days to deliver the product, customer loyalty will be lost, even with a standout experience. The perspective must be more holistic and comprehensive, recognizing the full value across the chain. The future of meeting expectations will require companies to adopt more subjective and emotional metrics, such as measuring trust, anxiety, and joy. The value lifecycle is becoming increasingly expansive and complex.

This may sound complicated, and it is. However, the benefits for companies that build a hyperpersonalized journey are significant, including strong contributions to customer acquisition, retention and loyalty. From a cost perspective, it is not about reduction, but rather an incredible optimization of CAC (investing smartly, with efficiency). And, of course, one of the key indirect benefits is brand enhancement, as we all know that great customer experiences strengthen a brand far more than any marketing campaign.

 

CONNECTING THE DOTS

Building on the article’s insights, a leading bank tackled the challenge of refining its sales strategy by improving product recommendations and customer outreach. By consolidating customer behavior data, the goal was to boost cross-sell and up-sell rates through the optimization of hyperpersonalization, delivering highly relevant offers through the most effective channels.

This approach enhanced CRM efficiency, leading to smarter interactions and deeper customer engagement, ultimately driving significant growth.

Want to see how we achieved these results? Explore the full case here

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