Data has revolutionised consumer expectations, and the marketing industry is changing rapidly in response. In the US, 71% of consumers expect companies to deliver personalisation and 76% get frustrated when this doesn’t happen.
These expectations are becoming commonplace and have led to the emergence of hyper-personalisation – an approach that is changing the face of marketing.
There is no denying the challenges that come alongside this new era, particularly when it comes to juggling compliance and privacy regulations. But those that wish to remain competitive need to persevere, otherwise they will risk losing out to their data-savvy competitors, writes Chris Daly, Chief Executive of the Chartered Institute of Marketing.
How does hyper-personalisation actually drive engagement?
Hyper-personalisation creates tailored experiences that truly resonate with consumers, through advanced data analysis that leverage in-depth insights and real-time information. It goes beyond traditional personalisation, offering a much more precise and dynamic approach to marketing that considers all touch points, drives greater engagement, and generates stronger customer loyalty.
Hyper-personalisation has the power to build emotional connections. Content that is truly catered to an individual, such as an email offering a discount on a product that was recently viewed, is far more likely to capture someone’s attention and stand out in a crowded market.
When customers feel that a brand understands them and offers products or services that suit their tastes and needs – their overall satisfaction grows. It helps people feel valued and not just like another name in the database. Building this type of emotional connection is key for fostering brand loyalty, improving customer retention and driving growth.
Why businesses should pay attention
Hyper-personalisation is so much more than just enhancing the customer experience; it is a gateway that helps businesses grow their bottom line. By investing in the right tools and technology, businesses can deliver tailored experiences at scale that will strengthen relationships with customers, create a positive brand perception, and stay ahead of the competition.
Tesco, one of Britain’s most beloved supermarkets, has been winning over customers for years thanks to its razor-sharp focus on hyper-personalisation. The brand, and its 30-year-old Clubcard, is a prime example of what marketing strategies can achieve if data is harnessed and tailored customer experiences are prioritised.
Tesco: one of hyper-personalisation’s biggest success story
The 30-year anniversary of the Clubcard marks one of the most notable success stories in hyper-personalisation. By offering personalised shopping experiences, discounts, and savings – Tesco revolutionised how brands could use customer data to create more meaningful interactions. The supermarket was a true pioneer in building customer loyalty.
With over 23 million members and being used by more than 80% of UK households – there is no denying the success of the Clubcard. Its immense growth is a direct result of Tesco’s decision to harness data and insights, to offer personalised experiences that customers find valuable. And, as an increasing number of grocery retailers adopt similar loyalty schemes, it is clear that data-driven marketing is taking on a more recognised critical role within businesses.
What can marketers learn from Tesco’s success story?
We can see just how transformative access to data can be when it is used to form actionable insights that underpin a business’s marketing strategy. Today, the modern marketers’ mix has expanded to reflect the access to data that brands now have at their fingertips.
Whether it is real time access to customer insights, or the ability to capitalise on emerging trends, marketers can gain a greater understanding of their audiences than ever before. There is now ample opportunity for marketers to ensure that campaigns are optimised, and the right messages reach the right people at exactly the right time.
But despite all the benefits that data-driven marketing brings, it is vital that marketers remain mindful of responsible training practices and standards. Handling customer-data carelessly can lead to unwanted complications, resulting in potential significant financial penalties if it isn’t used responsibly.
The role of best practice and standards
As hyper-personalisation continues to grow in importance, it is crucial for businesses to prioritise best practices, and maintain ethical standards associated with the use of customer data. Data-driven marketing requires a level of professionalism and responsibility that ensures businesses are GDPR compliant. Consumers need to be able to trust the brand that their personal information is protected and being used appropriately.
To support marketers in this effort, the Chartered Institute of Marketing (CIM) has developed a skills and behaviours-based framework, known as the Global Professional Marketing Framework (GPMF), which outlines the core attributes of an outstanding marketer. This framework provides guidance on the key skills, behaviours, and responsibilities that marketers must possess to ensure they are using data responsibly and ethically. By following best practices, businesses can build trust and garner a competitive edge.
Conclusion
Adapting to emerging technologies and gaining the full potential of data is no mean feat. But hyper-personalisation is here to stay, and brands must look beyond the buzzword to incorporate this tactic into their marketing strategies going forward.
As consumers increasingly view personalisation as the standard, it is vital that businesses consider how to leverage data-driven insights, with responsibility and compliance front of mind. Otherwise, businesses risk falling behind the data-savvy competition.
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