10 years ago, I was working in the travel & hospitality industry, and our VP gave us the goal of having the ability to deliver 1 million variations of personalized experiences on our site to anonymous and authenticated visitors. At the time, we were in the process of upgrading and implementing new additions to our MarTech stack, and some of the tools we acquired offered rules-based personalization and early versions of what we would now describe as machine learning and AI-powered automation. In our naivete, we were convinced that all we had to do was set up a few rules for content, define audiences, provide a few assets, and the system would go to work analyzing data and begin to automatically deliver the most relevant content to each user that visited our site.
We never made anywhere close to 1 million, mostly due to product and technical limitations, however through trials and tribulations, we ended up configuring a system and developing a set of processes that allowed us to deliver custom experiences utilizing our DMP, CRM data, and real-time web-behavior. What we built would eventually be credited with driving hundreds of millions of dollars in incremental yearly revenue, and saving hundreds, if not thousands, of man-hours per year.
Advancements in Technology Making Customization Accessible to All Businesses
Fast forward to today, and when we evaluate the advancements in generative AI technology and the evolution of CRMs and CDPs, the light at the end of the tunnel has never been brighter. Hyper-personalization through advanced segmentation is not a new idea or trend, however, the technology is now evolving from a conceptual idea only feasible in the perfect environment, to something that is achievable for just about everyone. Businesses of all sizes can now realistically enable full-stack experiences to customize digital platforms, products, services, and advertising content at scale. Using sophisticated data analytics, AI, and machine learning to refine and amplify traditional personalization strategies is now within reach for small and mid-market firms and is no longer reserved for the largest enterprises with massive IT budgets and highly specialized departments.
Smaller brands and even local mom & pop operations are moving toward seamless personalization across multiple touchpoints. Whether it is online, in-store, or through mobile apps, the results are game-changing for business owners allowing them to transcend the limitations of one-size-fits-all marketing approaches and truly stand out in an increasingly crowded and competitive market. With consumers having more choices than ever in the online marketplace, businesses have to stay on their toes to compete with homogeneous product and service offerings in today's marketplace. From landing pages and videos to email campaigns, SMS, and targeted ads, these downstream channels can be leveraged to craft highly personalized experiences that foster customer loyalty, boost retention, and drive revenue growth.
Businesses that rely heavily on customer relationships, loyalty, and retention have long benefitted from leveraging customer data and using it to segment audiences and create targeted content and offers. Especially those that operate in hospitality, e-commerce, and healthcare spaces. Smaller firms are now producing tailored approaches that not only boosts customer interaction, but also nurtures loyalty, resulting in repeat buyers and advocacy. Companies are also utilizing these tools to interact with customers to conduct research and gather feedback on customer expectations, reviews on services and products, and even competitor research.
Getting Started with Personalization & Segmentation
If you are wondering where to get started, my recommendation would be to start small and implement one thing at a time. First, you must prioritize data collection and obtain explicit consent if you desire to utilize email and text messaging for non-transactional communication. Analyze your customer data, group them into segments by understanding their individual goals and expectations. Review your digital platforms and social media profiles to ensure that brand messaging, tone, and experiences are consistent and meet customer expectations and industry standards. Businesses should strive to strike a balance between delivering relevant, timely information and avoiding over-communication that can feel intrusive or resemble spam. Just because multiple touchpoints are available does not mean they should be used in every situation. Sometimes, a simple, well-timed text message thanking a customer or an email with a special offer or coupon is all it takes to achieve the desired outcome.
While there is no universal formula for hyper-personalization, following a few best practices can significantly enhance its impact. For example, small businesses should focus on building a solid customer database, which can be accomplished by integrating CRM tools with their POS system and other marketing platforms. It is also effective to focus on key points of the customer journey, whether at the beginning or end. Based on my experience, I often recommend using strategies like retargeting to boost brand recognition, offering promotions to abandoners, and conducting post-sale follow-ups—these are often great starting points for targeted personalization.
I can confidently say that hyper-personalization is far more than just a trend, it is a powerful strategy that can transform how businesses large and small can connect with their customers. In today’s competitive landscape, it offers a unique opportunity to differentiate your brand and foster deeper, more meaningful relationships with your audience. By implementing best practices in hyper-personalization, businesses can harness their full potential, driving significant engagement and delivering exceptional results.
If you are wondering what specific tools or technologies businesses should consider adopting for effective hyper-personalization or how can companies measure the success and impact of their hyper-personalization efforts, Contact us today