Customer is King. This age-old expression has proven to resonate time and time again, especially in today’s convenience culture. Thanks to the plethora of channels, devices, and formats available to consumers when interacting with a given brand, companies are continually competing to build deeper, more personalized connections with the customer. Traditional strategies like semi-targeted advertising are no longer enough to guarantee a consumer can genuinely identify with a company or brand.

Exciting advancements in the computing power of AI systems and big data collection have made possible real-time hyper-personalization, providing companies with a massive opportunity to stay connected and keep interacting with customers. Hyper-targeted services can now be instantaneously delivered through the collection of several online browsing and purchasing data points from each consumer, and from other similar consumers as well.

Personalization strategies are shifting dramatically as the focus on customer and brand experience continues to grow in importance. More than ever before, companies are able to indicate on a very granular level what the consumer wants, when they want it, where they want it, and how they want it. As consumer expectations increase and the demand for digital service grows, it is critical to prioritize meaningful engagement and customer loyalty through personalization.

Consider Netflix, video streaming service giant. According to Business Insider, Netflix estimates that a whopping 80% of content watched by their subscribers comes from the company’s personal recommendation engine. Leveraging technologies like AI in a more impactful way to better understand consumer data and behavior can help create more successful, hyper-personalized experiences like Netflix’s recommendation engine.

Personalized data collection: a balancing act

With such a growing focus on the invaluable resource that is data, it is critical that companies are both protective of and transparent with the use of that data, and versatile when it comes to customer management of that private information. Finding that sweet spot of personalized data collection between being beneficial and – for lack of a better word – downright creepy, makes all the difference.

According to Deloitte Insights, “if consumers are given control over their data, including the right to delete it, they are more comfortable sharing it. Make no mistake–consumers do want control. Ninety-three percent of US consumers feel they have the right to delete their online data. Consumers consider their data to be personal property, and they are willing to invest time to protect it: Even though it’s work, 71 percent say they are interested in managing their personal data. But if they had visibility and control over their data, 73 percent of all consumers across all generations said they would be more comfortable sharing it.” Safeguarding personal data in all digital experiences relative to the holistic customer journey will provide stronger growth in customer loyalty, advocacy, and overall delight.

Going the extra mile: Who’s getting it just right?

Through unique in-app and email messages and hyper-personalized playlists, brands like Starbucks (largest coffee chain in the U.S.) and Spotify (largest subscription music streaming service) have seen recognizable success by analyzing user preference, history, and tastes to generate tailor-made recommendations. Both Starbucks’ and Spotify’s apps create exceedingly personalized interfaces for each individual user through AI-based algorithms. Starbucks has experienced continued growth pushing their specialized email offers and in-app messages in simple yet impactful ways, while Spotify’s individually crafted and exceedingly well-known Spotify Wrapped and Discover Weekly playlists have proven to be massively popular across users.

Navigation apps like Google Maps are perfect examples of utilizing real-time AI, data, and hyper-personalization. For instance, based on the time and your current location, as well as past trips and behavior, the app knows when you are about to leave work to drive home, and will notify you accordingly. Based on real-time behavioral AI systems, the user is provided with automatic notifications informing them how long it will take to get home, current traffic patterns, and even alternative routes. 

Overall, gaining a 360-degree view of both the behavior and identity of the consumer is an inevitable future that brands everywhere must embrace. AI technology has made these hyper-personalized services possible, but ensuring you are collecting accurate, relevant data in a transparent way can guarantee you are continually putting the customer first.