Privacy Landscape Shifts Challenging E-Commerce
Recently, there has been a crucial shift in how businesses plan to understand and interact with their customers online. That being said, the digital landscape around privacy has changed significantly, making it more challenging for brands to achieve personalization. With the rise of AI, brands are now seeking to take this one step further into hyper-personalization, with a unique and tailored experience per person, which makes things even more challenging.
Hyper-Personalization that is truly HYPER
Today's consumers demand experiences that are tailored to their unique preferences. AI-driven hyper-personalization enables businesses to deliver highly targeted content and offers, creating a one-user, one-website experience. This capability translates into several key areas:
- On-site personalization: Tailor website content to individual user behaviors.
- Media: Optimize advertising campaigns to reach specific audience segments.
- Clientelling and CRM: Deliver personalized messages and offers to enhance customer relationships.
- Customer Experience: Improve overall user satisfaction by anticipating needs.
- Customer Support: Provide proactive and relevant support based on user data.
The problem - hyper-personalization requires a deep knowledge of each user (a.k.a. - the user-cold-start or information bottleneck).
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Predictive Hyper-Segmentation to The Rescue!
The good news - real-time customer intelligence is now possible to achieve, making it an essential added layer to your digital infrastructure.
Predictive hyper-segmentation uncovers deep insights into user behavior, moving beyond surface-level data. It helps e-commerce platforms predict future customer actions and their hyper-segments such as purchase probability, average order value, shopper attitude and product intent.
To make this possible, the AI models require additional information that is mandatory and is gained by leveraging a combination of proprietary features and human-computer interaction techniques. This allows for a 15x better understanding of users during their browsing sessions without requiring them to opt-in.
Identity Resolution is Not Enough
Despite the common misconception, understanding customer identity (with identity resolution, etc.) is not enough to allow for REAL hyper-personalization. The real value lies in having a deep customer intelligence layer that provides precious actionable insights derived from this information. Example: Imagine not just knowing that a user is the same person seen two days ago, but also that he's a Gen Z male with high purchase intent and a preference for discounts.
This advanced level of customer intelligence reveals not just who your visitors are, but why they're on your site, providing insights into purchase probabilities, shopper types, demographics, product intent, and much more—all in real-time.
It anticipates needs and tailor experiences in ways that directly translate to more effective marketing campaigns, improve on-site personalization, and make data-driven decisions that drive growth. The real-time customer intelligence layer is crucial, maximizing the potential of website visitors and the overall online business.
Conclusion
As we progress, brands are eager to harness more AI technologies, but there's a significant bottleneck: the lack of information on most users. More than 96% of website visitors are anonymous and unaddressable. This information gap prevents the activation of powerful AI tools, limiting them to basic techniques like A/B testing, instead of real hyper-personalization as initially intended.
To bridge this gap, brands should challenge their reliance on standard segmentation and identity resolution. Instead, they should adopt a real-time customer intelligence layer, combining predictive segmentation with additional data layers like human-computer interaction which provide 15x more information.
Kahoona’s Recommended Cookbook
The latest advancements in AI and their implications for e-commerce are profound. Embracing these technologies is crucial for businesses to stay ahead. This unique combination of knowledge and expertise in human-computer Interaction with hyper-personalization is a capability belonging to very few companies. Using their advanced technologies not only positions online brands as pioneers in the industry but also offers a blueprint for others to follow.
In a world where customer expectations are continually evolving, delivering personalized, and conscious experiences is key to success. Brands should aim for a full personalized journey user-experience. This is not a plug-and-play task though, and breaking it into a phased approach is recommended. We went ahead and outlined a recommended cookbook for you:
- Start with a goal of an end-to-end personalization experience of one person.
- Research who is the first persona that is best to address from an added value perspective, and improvement of the customer experience for a larger audience.
- Create a roadmap for the following personas or audiences to address.
- Implement an end-to-end personalized journey for personas one-by-one.
- Monitor the performance of each of the personalized journeys and make sure there is no "cannibalization" between the different journeys.
- Repeat #4 and #5.
By addressing the information bottleneck and embracing hyper-personalization, brands can unlock the true potential of AI, offering more human and meaningful experiences to their customers.
We encourage you to speak with one of Kahoona's experts to learn more about the immense impact of hyper-personalization.
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Hyper-Personalization: A Glimpse into The E-Commerce Future - Blockers and Predictive Segmentation as the Main Enabler
8/12/2024
Privacy Landscape Shifts Challenging E-Commerce
Recently, there has been a crucial shift in how businesses plan to understand and interact with their customers online. That being said, the digital landscape around privacy has changed significantly, making it more challenging for brands to achieve personalization. With the rise of AI, brands are now seeking to take this one step further into hyper-personalization, with a unique and tailored experience per person, which makes things even more challenging.
Hyper-Personalization that is truly HYPER
Today's consumers demand experiences that are tailored to their unique preferences. AI-driven hyper-personalization enables businesses to deliver highly targeted content and offers, creating a one-user, one-website experience. This capability translates into several key areas:
- On-site personalization: Tailor website content to individual user behaviors.
- Media: Optimize advertising campaigns to reach specific audience segments.
- Clientelling and CRM: Deliver personalized messages and offers to enhance customer relationships.
- Customer Experience: Improve overall user satisfaction by anticipating needs.
- Customer Support: Provide proactive and relevant support based on user data.
The problem - hyper-personalization requires a deep knowledge of each user (a.k.a. - the user-cold-start or information bottleneck).
Predictive Hyper-Segmentation to The Rescue!
The good news - real-time customer intelligence is now possible to achieve, making it an essential added layer to your digital infrastructure.
Predictive hyper-segmentation uncovers deep insights into user behavior, moving beyond surface-level data. It helps e-commerce platforms predict future customer actions and their hyper-segments such as purchase probability, average order value, shopper attitude and product intent.
To make this possible, the AI models require additional information that is mandatory and is gained by leveraging a combination of proprietary features and human-computer interaction techniques. This allows for a 15x better understanding of users during their browsing sessions without requiring them to opt-in.
Identity Resolution is Not Enough
Despite the common misconception, understanding customer identity (with identity resolution, etc.) is not enough to allow for REAL hyper-personalization. The real value lies in having a deep customer intelligence layer that provides precious actionable insights derived from this information. Example: Imagine not just knowing that a user is the same person seen two days ago, but also that he's a Gen Z male with high purchase intent and a preference for discounts.
This advanced level of customer intelligence reveals not just who your visitors are, but why they're on your site, providing insights into purchase probabilities, shopper types, demographics, product intent, and much more—all in real-time.
It anticipates needs and tailor experiences in ways that directly translate to more effective marketing campaigns, improve on-site personalization, and make data-driven decisions that drive growth. The real-time customer intelligence layer is crucial, maximizing the potential of website visitors and the overall online business.
Conclusion
As we progress, brands are eager to harness more AI technologies, but there's a significant bottleneck: the lack of information on most users. More than 96% of website visitors are anonymous and unaddressable. This information gap prevents the activation of powerful AI tools, limiting them to basic techniques like A/B testing, instead of real hyper-personalization as initially intended.
To bridge this gap, brands should challenge their reliance on standard segmentation and identity resolution. Instead, they should adopt a real-time customer intelligence layer, combining predictive segmentation with additional data layers like human-computer interaction which provide 15x more information.
Kahoona’s Recommended Cookbook
The latest advancements in AI and their implications for e-commerce are profound. Embracing these technologies is crucial for businesses to stay ahead. This unique combination of knowledge and expertise in human-computer Interaction with hyper-personalization is a capability belonging to very few companies. Using their advanced technologies not only positions online brands as pioneers in the industry but also offers a blueprint for others to follow.
In a world where customer expectations are continually evolving, delivering personalized, and conscious experiences is key to success. Brands should aim for a full personalized journey user-experience. This is not a plug-and-play task though, and breaking it into a phased approach is recommended. We went ahead and outlined a recommended cookbook for you:
- Start with a goal of an end-to-end personalization experience of one person.
- Research who is the first persona that is best to address from an added value perspective, and improvement of the customer experience for a larger audience.
- Create a roadmap for the following personas or audiences to address.
- Implement an end-to-end personalized journey for personas one-by-one.
- Monitor the performance of each of the personalized journeys and make sure there is no "cannibalization" between the different journeys.
- Repeat #4 and #5.
By addressing the information bottleneck and embracing hyper-personalization, brands can unlock the true potential of AI, offering more human and meaningful experiences to their customers.
We encourage you to speak with one of Kahoona's experts to learn more about the immense impact of hyper-personalization.
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