Hyper-personalization in CRM – New or old wine in new bottles?

Hyper-personalization a new trend?

I just read another newsletter from the USA about hyper personalization. Today’s article refers to another article from August 2018, which allegedly was or is the main trend at that time.

When someone talks about trends, I usually take a closer look. Because either the person is making himself unnecessarily important or has probably already overslept him anyway.

Hyper-personalization, what exactly is that?

The 2018 article describes it as follows: “A singular and unified view of the customer and his entire journey across touchpoints and brand interactions is a must to create hyper-customized messages and interactions.

Wikipedia has the following, very formal definition: “Personalization in information technology refers to the nominal assignment of characteristics to a user and the adaptation of programs, services or information to the personal preferences, needs and abilities of a user”.

Well, if this is not recognized until 2018, then the trend has indeed been missed. I myself have been working on the topic of CRM almost daily since 1990. Personalization and individualization have been my and my colleagues’ daily bread ever since. Those who personalize achieve more. There is no need for AI or marketing automation as a fig leaf of modernity or megatrend. It would be better to just do it and not talk about it for long.

How long has this term with the attribute hyper existed? Google research shows the first traces in 2016. Since 1990, that is roughly 26 (in words twenty-six) years. The author colleague is right about the content, but that’s all old coffee, just poured over the topic of email marketing.

The well-disposed reader will say that the topic is mostly suffering from address and data quality. OK, unfortunately that is true. But the objection does not go far enough. Even a few basic variables can usually be usefully used for personalization.

Make it simple or make it easy

Above all, software vendors should make it easy for the user to enable this personalization. Meanwhile, this usually works quite well. But because of all the hyperbole, the tool is already too complex and the classic dummy user cannot get to the core because of all the possibilities: to send an individual or personalized message.

Even market-leading companies just write their letter or newsletter recipients with their first and last name. Product personalization or differentiation of the displayed images by gender or age are mega steps into the future (or into the present?).

The freestyle would then be, for example, personalising the images or individualising the offers according to the current weather. This means that different pictures are played out depending on opening hours and the weather in the region. (Examples include United Internet, XQueue)

What are the benefits of personalisation or individualisation?

Since 1990, we have been aware of tests and campaigns that have repeatedly proven that personalization can achieve a great deal. There is no need for an extra prefix hyper.

Advertising gets more attention when it is hyper-personalized.

But not because of the hyper ūüėé, but simply because of the personalization. For example, in print campaigns

  • other images depending on gender and age: 3 to 5 % more buying response,
  • the use of birthday, name day or anniversary of the customer relationship: between 20 % and 30 %!!! more
  • buying response,
  • Cross-selling product offers: Approx. 3 to 5 % more buying response
  • Opening rates of e-mails also improve by up to 25%
  • conversion rates accordingly also by 5 to 15%.

On the phone, everyone expects to be addressed by name, and the same applies in a personal conversation. My favourite story about it: When boarding a Lufthansa flight, the stewardess greeted all passengers by name. There I (and all fellow travellers) felt in good hands.

So this is no witchcraft or “hyper, hyper”, as Scooter has already preached loudly. Whoever starts it now, has slept well and calmly. Carpe Diem. I have finished.

Picture source: Pixabay

Note: This is a machine translation. It is neither 100% complete nor 100% correct. We can therefore not guarantee the result.

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