How Data Analytics and AI can Help Retailers Create Hyper-Targeted Engagement

Technology is enabling brands to map the needs of customers before they enter the marketplace and helps in tailoring the web content as per customer's browsing history.
How Data Analytics and AI can Help Retailers Create Hyper-Targeted Engagement

Marketers need to reach customers with extremely relevant messages at the right time and right place. Customers expect to be treated as ‘one in a million’, and thus marketers are focusing on making marketing successful through hyper-targeting. 

This strategy has allowed marketers to deliver customized messages to their targeted customers. Along with the demographics, marketers are focusing upon customer’s interests, beliefs, and sentiments to take personalization to the next level. 

Hyper-targeting is boosting the marketing strategy by focusing on customer interest, generating leads, and increasing sales. 

“56 percent of consumers feel that most of the messages from brands are irrelevant or unimportant to them,” according to research by IBM.

As customers use multiple devices during the day, hyper-targeting is a new potential approach to keep them engaged. “Hyper-targeting has a positive impact on about 86 percent customers and brands are also easily able to keep track of their target group,” Infosys mentioned in a study.

The Era of Being Connected

Today’s customer expectation is more than being connected and brands are focusing on having a forceful marketing strategy to achieve the same. In today’s time, the expectation of the customer is changing every hour, competition is at its peak, and companies are having abundant data to understand customer choices. And, thus marketers are adopting hyper- personalized or targeting marketing strategy to generate specific insights about the customer to build an action plan which is data-driven and customer-centric. 

Technology today allows the brand to be exclusive in building a personal connection with customers. A study by Gartner finds, “brands risk losing 38 percent of their existing customer base due to poor personalization efforts”. 

Brands are harnessing the power of Data Analytics and Artificial Intelligence (AI) to create more authentic interactions with customers.

Through hyper-targeting, brands are ‘connecting with a purpose’ and the same can be achieved if hyper-targeting is applied throughout the customer journey. Few brands have ‘significantly influence’ the customers through their personalized involvement in buying decisions. 

From personalized content to personalized offers, Amazon uses strong algorithms to create tailored product recommendations keeping customer purchase and search records in mind. 

For engaging better, NIKE has targeted its customers with personalized content by targeting young customers on all social media platforms. 

The confectionary giant, Cadbury has also found its success through personalized campaigns like ‘Glow Gift Chocolate’ in India and ‘Flavor Matcher campaign’ with Australian customers. 

And Netflix personalization tools have proven that they know their users better than their own better halves. 

Technology is an Enabler

For advanced marketing solutions and to gain a deeper understanding of customers, AI-powered hyper-targeting provides the appropriate solutions. The combination of data and technology with the vast amount of information in real-time is making the customer interaction fruitful. 

Technology is enabling brands to map the needs of customers before they enter the marketplace and helps in tailoring the web content as per customer’s browsing history. Retailers are ensuring the unique experience of customers by bringing their online experience in physical retail through the use of technology. 

To drive conversion and promoting the brand in a relevant manner ‘modeling technology’ can help the retailers to decide offers and discounts in real-time decisions. 

For optimal conversion, brands need to combine the customer data owned by them with the data customer shares with brands on multiple platforms. 

The roadmap towards success doesn’t lie in capturing the data, brands should focus on identifying the relevance of data by using customer relationship management and customer data platforms. Brands should realize that using technology is not hyper-targeting, identifying priorities and investing in customer’s expectations is a big game. 

Data, analytics, and AI can help retailers in creating the hyper-targeted segment as it’s the time to connect meaningfully in this ‘new reality’.

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