Steal these hyper-personalization strategies from top brands

When it comes to marketing, one is not the loneliest number—it’s the most powerful. Targeting individual customers using real-time data combined with the interpretive powers of machine learning and artificial intelligence has enabled a degree of hyper-personalization that can drive impact in ways never before possible. In fact, according to a recent Twilio Segment survey, 89% of leaders believe that this type of personalization will be key to their business’ success in the next three years. 

Across the board, offering customers individualized content, products, and services at scale has been shown to increase engagement, conversion, loyalty, and ROI. Thanks to advanced algorithms and predictive analytics, every single step a consumer takes online—from clicks to searches to purchases—can be used to develop a dynamic marketing approach that is unique to each person’s patterns and preferences. 

Real-world examples of hyper-personalization in action

Read on for a closer look at how three brands are crushing the hyper-personalization game and the best practices we can learn from their wins. 

Real-time engagement

McLaren Racing puts nearly as much thought into custom tailoring its communications as it does its Formula One cars. During a race weekend, the team uses AI and real-time data to send bespoke push notifications and automated emails to its global audience of millions. Studies show that emails with a personalized touch see an increase of 26% in open rates, making personalization at this level of the funnel well worth the effort, especially considering that 59% of Americans say the majority of the emails they receive are not useful. 

A recent SmarterHQ report found that 72% of consumers only interact with marketing materials that are customized to their unique interests. By using fan insights to customize everything from subject lines to email copy, McLaren ensures its timely marketing content increases both engagement and brand favorability. 

Managing millions of personalized messages

For performance marketing platform Ibotta, personalized emails and in-app messaging are vital to the success of its mobile shopping app. By collecting digital assets from participating stores and brands, the company is able to customize the more than 120 million emails it sends its customers per month, managing output by season, campaigns, products and more. 

Creating a more human relationship is a priority, which is why Ibotta uses in-house machine learning models to send users hyper-personalized shopping lists and messages that include recommendations, current offers, trending items and valuable rewards. These messages are tailor-made based on each individual’s browsing, buying and product preferences. 

However, getting the messaging right matters. When customers have a “creepy” or mismatched interaction with a brand, for instance, not only will a majority—63%—cut ties, but they’ll also make it known. Sixty-eight percent say they’ll tell family and friends, 41% will leave a bad review and 33% will post about it on social media. What’s more, 79% of consumers say they are only likely to engage with an offer if it’s been customized based on their previous interactions. When it comes to hyper-personalization, brands must get it right or risk alienating the consumer.

Creating viral moments with personalized content

It could be argued that Spotify knows its customers better than they know themselves—the brand is just that good at hyper-personalization. By using advanced algorithms and AI to customize playlists and daily mixes according to each individual’s tastes, users have a real sense of being “seen” by the audio streaming service. More than ever, customers, especially Gen Z, not only want but expect a personal connection with the products they use; 62% say a brand will lose their loyalty without personalization. 

In particular, Spotify knocked it out of the park with Daylist, its popular bespoke playlists. The brand’s AI gives its compilations silly names (everything from “cozy pumpkin spice Monday morning” to “overthinking bed rotting late night”) that users immediately began sharing on social media, leading to a viral, organic, consumer-driven campaign. What’s more, the playlist updates throughout the day, further adapting to each user’s listening preferences. 

The power of personalization

Hyper-personalization at this scale leads to higher user retention and stronger brand affinity. A Deloitte report found that 90% of consumers say personalized marketing is appealing, and it’s campaigns like this that reinforce this stat. 

Developing a clear and precise strategy is the first step to begin to boost engagement and campaign effectiveness, but having the right technology in place to effectively translate the amount of data attached to individual consumers into compatible, hyper-personalized interactions is non-negotiable. 

The future is already here—77% of companies already use direct one-to-one personalization. Those brands are seeing an increase in market share, with 59% of those seeing an increase of more than 10% in the past year. Don’t be late to this party. The time to develop a marketing approach rooted in individual customer needs and expectations is now.