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By Hanna Metz and Tim Warren
Hanna Metz and Tim Warren
5 October 2023
This article originally appeared at Fractional Founders
We are entering a new era of marketing where AI predicts consumers’ next online purchase. AI can offer the product before the consumer even knows they want it. Yet one has to wonder: is it genius or just plain creepy? Let’s be real, marketers and e-tailers across the world are foaming at the mouth just thinking about the unprecedented possibilities of AI, but what do consumers actually want?
Hyperpersonalisation, a buzzword floating around in every digital marketer's coffee chat, is basically AI’s attempt at a grand romantic gesture. The promise? To make every digital experience feel like it’s been tailored-made just for you. The idea is simple: the more personal, the better. And the numbers back it up: a 2023 Salesforce study reported that 81% of consumers will reassess their budget over the next 12 months, seeking more personalised experiences1.
The digital dance between consumers and brands is intricate. The allure is undeniable - AI's ability to interpret preference, behaviour, and even future need is unmatched. But if not implemented properly, brands face the risk of damaging their image and ultimately losing customer loyalty. Overstepping the boundaries can quickly make consumers feel less cherished and more invaded.
The AI age presents a paradox: we are aware of the "digital eyes" on us, yet so many of us crave the attention. 60% of millennials have voiced that they're open to sharing personal data if it means more tailored and relevant offers2. It’s basically like to saying, “Go ahead, watch me - but you better make it worth my while!”
As one person put it :
“Stalk me, but bring me flowers before I'm sad!”
We know, hyper-personalisation can drive impressive sales - at least in the short term. Companies using advanced personalisation techniques are making bank. 70% of these firms have already secured 200% ROI or more3. But it's more than just a sales tool; it's a bridge to building authentic and lasting relationships with consumers. After all, 52% of consumers, when given the cold shoulder (or poor service), will walk away from a repeat purchase1.
But is it authentic? If you dont tell consumers that this is an AI personalised curated experience then, well, sorry but it’s not authentic and you will lose consumer trust. However if you do tell then it’s AI optimised, do they really feel you are giving the human touch? Or is it perceived as cynical pseudo-care?
Hyperpersonalisation is a double-edged sword, so brands need to wield it with care. It’s a great tool to enhance the user experience, not overwhelm it. Remember, in the game of digital love, it's about making the consumer feel special, not spied upon. Perhaps the best relationship advice for brands and consumers alike is: "It's not about you, it's about us."
3 The Rise of Personalized Commerce Study
Tags
#AI #ArtificialIntellegence #Marketing #Automation #Personalisation #Hyperpersonalisation
Authors
Hanna Metz is the founder of Smart Path Digital (https://smartpath-digital.com/), a Strategic Agency. Combining her international track record in marketing leadership with expertise in digital strategy, Hanna crafts impactful brand narratives that drive businesses to new heights. Find Hanna on LinkedIn here: https://www.linkedin.com/in/hannakmetz/
Tim Warren is a Founder of Ambit.ai - an Artificial Intelligence startup. He is a Fractional Executive keynote Speaker and a regular commentator on AI, Technology and Leadership. Find Tim on LinkedIn here : https://www.linkedin.com/in/tswarren/
