There isn't a clear-cut answer to this question, sorry. There's a fine line between being super creepy or super awesome, but it's really up to your customer to determine when that line gets crossed. Hyper-Personalization is all about being acutely customer-centric. On one hand, a brand needs to provide unique, engaging and meaningful experiences for each user, or risk them jumping ship to their competition. On the other hand, a customer's privacy is a big deal – a huge deal. Bridging the gap between personalized marketing and consumer confidentiality is where that fine line can get blurry.
According to research, 90% of consumers find personalized experiences appealing, and 80% say they're more likely to purchase from a brand that offers them. This is excellent news for marketers. If you gather and analyze data about your customer's buying or browsing behavior, you can customize products, services, and content for their tastes and preferences.
Amazon is the best brand at the hyper-personalization game. It relies on a massive amount of combined usage data and behavioral data to create highly personalized experiences. From your home page to recommendations to 'frequently bought together,' Amazon 'listens' to their customer and provides an awesome, effortless experience. Reports indicate that 35% of Amazon's sales are attributed to recommendations – wow!
Now, behavior that seems perfectly reasonable for marketers can be creepy to customers. When does personalization go too far? Brands that ask for too much information like a phone number to buy a product or apps that ask for access to your contacts (hard no). People don't want to feel like they're being watched, their data is unsafe, or their privacy is threatened.
Here are a couple of tips. Customers value personalization when it gives them exclusive access and VIP treatment, so you can't make it just about easier or more efficient interactions. Also, be upfront and honest about the data you're collecting, as that transparency may get you more click-throughs and sign-ups.
Personalization, when done right, is a huge step forward in your marketing messaging. Brands who overdo personalization risk being labeled as 'creepy’. Consider conducting a survey and find out what your customers are comfortable with and then listen to what they say.
Data collection and personalization can be part of our world without lines being crossed. The best marketing that shows a return-on-investment is what your business needs. Drop us an email at firstname.lastname@example.org; we can help evaluate your brand, and get you more customers!