Hyper-personalisation in the consumer products and retail (CPR) industry emphasises the need for businesses to move beyond traditional methods of personalisation, which typically rely on demographics such as age, gender, or location. It calls for deep understanding and quick response to a consumer's requirements, desires, and preferences in real-time, both in physical and digital settings.
Organisations are investing in innovative new-age technologies that deliver tailored experiences to their customers. This approach results in benefits such as increased revenue, reduced customer acquisition cost, and improved marketing spend efficiency. Personalisation is no longer a ‘nice-to-have’ feature; it is a strategic imperative for businesses.
Understanding Hyper-personalisation
Hyper-personalisation combines the power of real-time data, analytics, and artificial intelligence (AI) to tailor products, services, and experiences, satisfying individual customer expectations. Thus it is an advanced digital marketing method.
A hyper-personalised experience addresses specific needs by leveraging the right information as required for the right customer and using the right channel. This enhances customer experience and loyalty in-store and digitally, truly unleashing the power of technology-driven hyper-personalisation.
Personalised products range from fashion to furniture and home decor. ‘Know Me Better’ is what a customer demands, which can be derived from data-based customer intelligence. For instance, café company Starbucks’ mobile app provides a hyper-personalised experience with real-time offers based on preference, activity, and purchase history, resulting in increased revenue and transactions. Athletic apparel and footwear brand Nike uses 3D printing to hyper-personalise sneakers at some of its stores.
Deploying Technologies
The confluence of AI, 3D scanning, augmented reality (AR), and computer-aided imaging helps in personalisation and prediction based on consumer preferences. At luxury stores, sales assistants have access to a customer’s online browsing & shopping history, design preferences, and size, allowing tailored recommendations. This may even be shared with the brand’s stores globally, letting the customer feel valued and special—a significant aspect of luxury sales.
Technological interventions include AI and machine learning (ML), which aid in design and trend prediction. Radio Frequency Identification (RFID), blockchain, and non-fungible tokens (NFTs) ensure authentication and traceability. Magic mirrors and AR/virtual reality (VR), provide an experiential in-store and digital experience. A scannable QR code on a physical product links to its digital twin describing the composition, applications, and step-by-step use.
Big data-driven generative AI in the fashion and beauty industries allows customers to produce innovative designs incorporating elements from previous collections in desired colours and sizes. Gen AI tools also enhance existing AI try-on solutions. For example, Gen AI algorithms can apply virtual lipsticks, eyeshadows, and multiple hairstyles to photographs uploaded by users. Customers have the liberty to mix and match and discover the perfect look virtually. The technology considers hair colour, face shape, skin tone, and body proportions unique to each user.
Emerging Instantiation
Today, brands are utilising advanced AI-driven strategies to enhance customer experience by personalising product discovery and pricing to individual users. For instance, e-commerce player Myntra analyses the first few clicks on the search results page to understand a user’s intent. It loads subsequent products accordingly, leading to faster discovery of preferred products. Similarly, predictive personalisation has given exponential revenue growth to e-commerce giant Amazon and over-the-top (OTT) player Netflix.
Hyper-personalised advertising has a high appeal among consumers. Such advertising uses the same platform and underlying data to present one of many targeted offers and dynamic discounts, based on who is viewing the offer. Confectionery company Cadbury created a hyper-personalised video advertisement using customer information and photographs with permission. This resulted in increased click-through and conversion rates for the brand.
Hyper-personalisation is no longer just a marketing tactic—it’s a strategic imperative that enables businesses to create meaningful customer experiences. Mastering hyper-personalisation brings several values to the table, such as real-time delivery and relevant interactions that drive customer satisfaction, loyalty, and ultimately, growth. Investing in hyper-personalisation today will enhance current performance and ensure businesses are well-positioned to thrive in the future of retail.
