4 Ways Hyper Personalization Can Take eCommerce One Step Further

eCommerce

Hyper personalization is the process of serving users with customized offerings, based on user data. This is typically achieved through the use of Artificial Intelligence (AI) algorithms.

In a traditional personalization process, marketing professionals collect user data, identify segments and micro-segments, create personalized content, and then deliver the content to the user. There is a lot of data to sift through, a lot of micro-segments to serve, which means the marketer needs to cope with a lot of tasks.

A hyper personalization process is handled by AI software. You can feed the algorithm with data and templates, and then the algorithm takes care of the rest. The hyper personalization AI collects user data in real-time, analyzes user behavior, and then serves each user with relevant content. This process can save a lot of time, and can also increase your ROI.

The hyper personalization AI continues to learn the unique needs and preferences of individual users, thus continuously optimizes the user experience. In this article, you’ll learn about key eCommerce tactics you achieve on your own, and how hyper personalization technology can help you take them to the next level.

1. Hyper-Personalized Homepages

Personalized homepages are a proven tactic to encourage users to click through to product pages and convert. Many eCommerce sites perform simple personalization on their homepage, such as:

  • Redirecting users to the section of the site most relevant to them, for example, women’s clothes or children’s clothes.
  • Changing the homepage according to the user’s location—showing items available in or relevant to their region.

How can hyper personalization help?

With hyper personalization, you can perform a deep analysis of customer preferences and do the following:

  • Context-sensitive redirection to site sections—for example, sending a user to a brand they are most likely to purchase, or have previously purchased.
  • Smart filtering of featured items on the homepage—showing only items the user is likely to enjoy.
  • Reducing the time needed to set up custom segments—hyper personalization dynamically modifies a homepage to suit each user’s preferences.

2. Continuous Shopping

Applications like Netflix and YouTube pioneered the concept of “continuous watching”—suggesting the next item the user is likely to enjoy, thus continuously moving them through the conversion funnel.

eCommerce websites are successfully applying the same concept, remembering the user’s viewed items and suggesting items for their next purchase. This can be done as part of the shopping cart process, encouraging users to add more items before they check out, or after the purchase, using personalized messaging on the site or in email campaigns.

How can hyper personalization help?

Traditional continuous shopping algorithms simply suggest an item the user has previously viewed, which is quite effective. However, if a user viewed an item and didn’t purchase it, that could mean they didn’t like it.

Hyper personalization can analyze an individual customer’s behavior and predict which specific items they are most likely to buy next. These might be items they previously viewed or interacted with, items purchased or liked by similar customers, or other items predicted by the recommendation engine based on their preferences.

3. Hyper-Personalized Email Marketing

Almost all marketers are personalizing emails to some extent. The following are common and highly effective personalization tactics:

  • Personalized subject lines—beyond adding the user’s first name, subject lines can suggest a specific product or offer relevant for the customer’s segment. For example, if the user is a man, suggesting popular items from the men’s clothes section.
  • Birthdays and holidays—sending an email on the user’s birthday, or sending personalized messages for holidays in the user’s location, is a sure way to improve open rates, as well as clicks and conversion rates.
  • Send emails based on behavioral triggers—a common tactic is to send an email after a user abandoned their shopping cart. Other behaviors could be a specific time elapsed since the user last visited the site (“we miss you”), or messages invoked by transactional actions like product returns.

How can hyper personalization help?

Each of the above tactics can be informed by each individual user’s background and behavior. Here’s how:

  • Personalize subject lines with the products each user is most likely to like and buy.
  • Send messages at times the user is more likely to buy by analyzing their previous behavior.
  • Send emails based on a huge variety of behaviors by predicting which type of behavior (for example, viewing multiple pages on the site, dwell time, repeat visits) is most likely to lead to purchase.
  • Saving the effort needed to manually set up segments and custom creatives for personalized emails, by dynamically adapting creative for each user.

4. Special Campaigns Based on User Behavior

Many marketers are creating segments and building personalized campaigns for groups of users who “did something important”. These campaigns could target:

  • One-time buyers—to turn them into repeat buyers
  • First-time visitors—to encourage them to make their first purchase
  • Users who abandoned their cart—encouraging them to complete the purchase

How can hyper personalization help?

Building special campaigns based on behavioral triggers is a very effective technique, but is extremely time consuming. Marketers have to create unique creative for each type of user behavior, monitor and test their approach, and modify it when it doesn’t work.

Often, a huge effort is spent on a campaign, and after some time it becomes irrelevant. This could happen because new audiences are visiting the site, because of a change to the site flow, UX, or purchase process, etc.

With hyper personalization, campaigns are built in a templated format, and copy is adapted automatically based on each customer’s individual behavior. This is much more effective than relying on simple behavioral triggers, and is also much easier because campaigns can be adapted and tested fully automatically.

Conclusion

Hyper personalization can help you deliver the most suitable content for each individual user, without spending a lot of time and effort on maintaining and optimizing the process. Hyper personalization AI software automates the process, thus ensuring your customers are continuously served with unique content.

Author Bio:

Gilad David Maayan is a technology writer who has worked with over 150 technology companies including SAP, Samsung NEXT, NetApp and Imperva, producing technical and thought leadership content that elucidates technical solutions for developers and IT leadership.