Hyper-Personalization: Benefits, Challenges, Best Practices

Today we will talk about hyper-personalization technology, which will become the main trend of 2024, if not for the entire decade. Let's find out what this methodology is, what its advantages are and how you can implement it into your marketing strategy. 

What is Hyper-Personalization

The definition of hyper-personalization is the adaptation of a website to the needs of a particular user in real time. Most often it involves generating text and multimedia content on the fly depending on the demographic, social and behavioral characteristics of the web resource visitor. Hyper-personalization can also manifest itself in the creation of a unique product, especially when it comes to services and goods made to order.

Certainly this approach requires a serious technical base. Hyper-personalization meaning is to use of artificial intelligence that can solve the most complex tasks in a matter of seconds. It can generate unique web pages in the same amount of time as usually required to display a website in a browser window. 

Future of Hyper-Personalization

In fact, we are talking about something that even 10 years ago could only be seen in sci-fi movies. Progress has been faster than the wildest fantasies — today hundreds of sites are adjusting to their users already. Their artificial intelligence accompanies the sales process as well as an experienced manager. 

According to trends in Customer Experience (CX) in 2024 hyper-personalization will be the most successful method of Internet marketing. Its mass adoption can bring billions of dollars to businesses, which will turn into trillions by the end of the decade. 

We can already predict such interesting details from the not-too-distant future of hyper-personalization:

• food delivery services that automatically generate a menu for the day;
• online stores that structure a catalog to suit your needs;
• travel agencies that offer your dream trips without any prompting.

Benefits of Hyper-Personalization

Adapting to each user's individual needs means a perfect customer experience. Hyper-personalization optimizes the sales funnel by reducing time spent, smoothing out bumps and significantly increasing conversion rates. The ultimate result of its application will not only be a significant improvement in key financial indicators, but also additional benefits, which we will talk about in more detail. 

Reducing the burden on a consumer

A wide assortment can be an advantage and a disadvantage at the same time. It gives a customer a choice, but makes him question the decision. Hyper-personalization allows you to reduce an offer to a few relevant products. Thanks to this, a user only has to complete the transaction without unnecessary stress. 

Increased loyalty

Personalized recommendations build trust in the brand. The company becomes a friend, ready to assist and support in a difficult moment. Due to this hyper-personalization increases the frequency of repeat purchases and the amount of subsequent checks. It also increases the percentage of people who become brand advocates and ambassadors.

Improving the quality of analytics

Personalized approach means tracking the entire buyer's journey — from product and company introduction to transaction. It allows you to collect more information than traditional marketing methods. This makes hypotheses more accurate, helping to better anticipate the behavior of new customers. 

Challenges of Hyper-Personalization

Let's discuss in more detail a few of the complexities of hyper-personalization that you may encounter. 

Technical challenge

The only way to rebuild web pages on the fly is to connect artificial intelligence. This is a relatively new technology that only highly specialized experts can understand. You will have to trust the chosen service without fully understanding the principles of its operation. This makes it difficult to expand the functionality of websites, solve technical problems, and test new hypotheses.

User distrust

Hyper-personalization is only possible if users' personal data is collected, processed and analyzed. Many people are cautious of this fact, fearing fraud and extortion. Individual visitors to websites can block any attempts to collect data, which precludes the formation of customized offers. To overcome users' distrust, you can give them positive motivation. For example, Claspo allows you to create pop-ups to collect information by offering exclusive bonuses in return — subscriptions, gifts, discounts, etc.

Rising costs

Implementing hyper-personalization requires connecting a range of software packages, e.g: 

• artificial intelligence-based generative models;
• databases;
• multimedia content repositories;
• analytics services and other applications. 

Subscribing to them will be a serious investment that will pay off over time. 

Hyper-Personalization: Best Practices

Though the technology is new, it has already become popular among large corporations. Top brands have managed to find many ways to put the idea of hyper-personalization into practice. We will look at the most successful examples. 

1. Personalized selection of products

The most common approach, in which the predictive system studies basic characteristics of a user and tracks his activities on the site. The algorithm first assigns a user to one of broad segments of the target audience, and then to a narrow group. This makes it possible to predict what kind of product a customer wants to buy. 

The most successful examples of hyper-personalization of this type are the Amazon Marketplace and the Netflix streaming service. Artificial intelligence helps them to reduce the search for the right product or series several times. As a result, the target action is accelerated, a customer journey is smoothed and loyalty is increased. Today, personalized recommendations account for up to 80% of transactions on these platforms.

Interestingly, it is relatively easy to take advantage of this approach. For example, Claspo plans to implement a functionality that will allow you to display recommendations in pop-up windows soon. Such a tool will be very effective — if properly configured, it will significantly increase conversion rates, strengthen calls to action, and shorten a buyer's journey without causing irritation. The service is convenient thanks to multilingual localization and an extensive library of templates with a variety of features. There is a built-in editor that allows you to quickly adapt any widget to your brand's style. 

2. Formation of unique products

Another successful hyper-personalization example is the promotion strategy of some SaaS services. They offer each user unique subscription options that differ in the set of features, limits, number of jobs and, of course, cost. 

Practice shows that personalized tariff plans significantly reduce the bounce rate. A user sees that the service is designed specifically for his segment, whether it is a small, medium or large business. Users have no doubts — a personalized approach encourages them to take the target action faster, without considering any other alternatives.

3. Personalized product presentation

The same product can have different values. Someone sees a car as a means of transportation, someone is looking for pleasure from high speed, and someone is interested in comfort and luxury. It is very difficult to develop a universal advertising appeal that will be of interest to every potential buyer. It is much easier to show a visitor exactly what is needed. 

Manufacturers of cars, electronics, clothing and premium jewelry use this method of hyper-personalization in their marketing strategies. On homepages or in product cards they display those multimedia elements that appeal to desires, needs and values of a particular person. For example, a short animated video can emphasize a smartphone's expensive finish materials, its performance in modern games, or its battery life.

4. Use of virtual assistants

Lack of contact with other people is an advantage and a disadvantage of e-commerce. The advantage is that a buyer does not have to overcome natural shyness and fend off intrusive offers. And the disadvantage is the difficulty of choosing products and getting professional advice. 

Therefore, a great hyper-personalization example can be the use of a virtual assistant. It is included in the sales process only at the moment when a website visitor has difficulties. The service already knows exactly what problems a customer has encountered, how they can be solved, and what products should be recommended to complete the purchase as soon as possible.

5. Transition to augmented reality

An experimental methodology that is just beginning to gain popularity. The new technology allows you to assess exactly how a product will look without visiting a store. Using an augmented reality headset, a buyer can see fashionable sneakers on his feet or assess how the closet will fit into the interior of his hallway. The gadget will also show the interior of a car or property — no need to go to viewings and test drives. 

The only problem with augmented reality is the complexity of the technology. It is quite demanding on server resources, which increases the cost of maintaining the infrastructure. In addition, in some areas, the technology is still available to a limited number of users. A smartphone does not cope with all tasks, and the average cost of an augmented reality headset is from 500 to 1000 US dollars. Therefore, such technology can be attributed to long-term trends that will become really popular by the end of the decade.

Hyper-Personalization: How Claspo can Help You

Today, hyper-personalization is one of the few ways to stay ahead of competition, improve the reputation of your business and build a loyal customer base. This methodology may seem complex and resource-intensive, but you actually have simple tools available to you. Claspo will help you modify your existing website by adding hyper-personalization elements to pop-up windows. Thanks to this, you won't have to change the structure of web pages and increase the cost of web development. 

Claspo is suitable for both large companies and small businesses. The service offers many tariff plans that are suitable for any marketing strategies. To use it, you don't need to write code and improve your technical skills — it has an extensive library of templates and a convenient widget builder. If you are promoting your business on your own and can't allocate much time for new marketing techniques, order a turnkey pop-up development. Claspo employees are ready to realize projects of any complexity and help with widget integration on your website. 

Subscribe to Claspo for free to test all the advantages of new trends. You will be able to accurately assess the effect of the new methodology thanks to the built-in analytics service.