Thanks to technological advancements, brands can now offer personalized experiences as a standard rather than an occasional treat. This shift has been so significant that the global personalization software market is projected to reach $2.2 billion by 2026. But with everyone jumping on this bandwagon, the obvious question is: How can a brand truly stand out from this crowd? The answer lies in advanced personalization also known as hyper-personalization.

What is advanced personalization?

It refers to the use of technology and data to create truly customized experiences for every customer. It goes way beyond surface-level personalization like addressing customers by name or recommending products based on their purchase history. Driven by data privacy concerns and sunsetting of 3rd party data, advanced personalization uses AI, Customer Data Platforms (CDPs), and machine learning to create a comprehensive customer profile that includes not only demographic information but also browsing history, purchase patterns, social media engagement, and more.

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In the past, personalization efforts were often limited to specific touchpoints in the customer journey. But advanced personalization helps expand tailored experiences across extended customer journeys. According to McKinsey, this can lower acquisition costs by up to 50%, improve revenues by 5 to 15%, and enhance marketing spending efficiency by 10 to 30%.

To help you stay ahead of the market and on top of your customer’s minds, we have compiled a list of 8 emerging trends in advanced personalization that have become apparent in 2024. Let’s dive in.

Advanced personalization trends of 2024

Contextual personalization with AI

By understanding the context with which users interact with a product or service, AI can adapt and customize the content, recommendations, and interactions to meet individual needs and preferences in real-time. For example, if the system detects that a customer has purchased swimwear in the past and the customer's location is near a beach, it can send a personalized offer for beach accessories before the customer even realizes they need them.

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Cross-platform personalization

A user switches between three devices, on average (source), and uses about ten channels to engage with a brand. This dynamic behavior demands the delivery of consistent digital experiences at every touchpoint across platforms and devices. So, brands can either begin making efforts or risk being left behind by competitor brands who will be meeting these customer needs.

Customized social proof

Contextual social proof showcases relevant social proof elements, such as reviews, ratings, and testimonials, based on individual user preferences and behavior. Businesses can build trust and credibility by presenting testimonials or ratings from users with similar preferences. For example, Yelp displays reviews and recommendations from users with similar profiles and interests when suggesting restaurants or businesses.

Dynamic pricing

These models customize prices based on individual user profiles, behavior, and purchase history. By offering dynamic pricing, businesses can optimize revenue and appeal to different segments of their customer base. For example, Airlines often use this by providing exclusive offers to frequent flyers or offering discounts on specific routes based on users' preferences.

Personalized voice assistants

Personalized voice experiences involve voice-activated devices and assistants that adapt responses and interactions based on individual user profiles and preferences. By recognizing user voices and preferences, these devices can offer tailored recommendations, reminders, and information. For example, Google Home personalizes voice experiences by providing individualized schedules, news updates, and music playlists based on users' voice commands and preferences.

Augmented reality experiences

By overlaying digital information in the real world, businesses can provide personalized AR experiences tailored to individual users. These capabilities enable offering a deeper personalization possible, with granular recommendations. For example,

• Sephora offers a virtual try-on feature allowing customers to virtually try on makeup products before purchasing, replicating the offline shopping experience.
• IKEA's Place app allows users to visualize how furniture will look in their space using AR, providing a personalized shopping experience.

Source: Sephora

Individualized chatbot interactions

By understanding context and user inputs, chatbots can now provide more accurate and relevant information or recommendations. Instead of sifting through irrelevant information or navigating complex menus, they receive targeted responses that directly address their concerns. This personalized approach not only saves users' time but also enhances their overall experience with the brand. Many banking apps are utilizing this tech to offer personalized financial advice, product suggestions, and support based on users' specific inquiries and needs.

Anonymous visitor personalization

It’s still early, but this trend will begin showing this year. With approximately 98% of business website visitors remaining anonymous, this is a huge untapped segment waiting to be recognized and engaged. Safe to say, it’s time to start personalizing for anonymous visitors to capture their attention with tailored experiences and increase chances of conversion.

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Conclusion

While companies are increasingly trying, according to Gartner, providing tailored customer experiences continues to be a challenge for over two-thirds (63 percent) of digital marketing executives. To achieve true personalization at scale, companies need to go beyond data and analytics. While these elements are crucial, they must be complemented by a comprehensive shift in how people work within the organization. This includes reevaluating existing processes, structures, technology, and workflows, to ensure all these elements align to deliver personalized experiences consistently across all customer touchpoints.

If you want to eliminate the complexities of advanced personalization, learn about our exclusive offering- Time-To-Value (TTV) service in which we assist and deliver all your personalization requirements in under 10 weeks. Write to us at marketing@altudo.co to build a better customer-centric brand.