In today’s fragmented and intensely competitive retail environment, being able to “connect” with your customer is more important than ever. In many cases Retailers are awash in various data sets, from SKU based buying data, to CRM and loyalty data, to inventory and pricing data. 

In parallel consumers are being bombarded with advertising and offer messages on a constant basis, so it is key for retailers to be able to cut through the noise and present the consumer with something relevant, that makes the consumer feel like they are being seen and heard. 

The answer to cutting through the noise, is hyper-personalization, a new take on personalization that is based on a much higher degree of data fidelity. In this instance, all aspects of communication are based on a 1-to-few approach, rather than the 1-to-too-many being used today. In a 1-to-few based approach, messaging moves beyond a transactional incentive, to include much more relevant and timely information, with all components of the advertising message being more relevant, including location based messaging, environmental callouts, such as the weather today or the weather in a few days (eg: the weekend), relevant items being called out, and yes, still some offer based incentive, but this component forms part of a much broader narrative with the consumer.

In order for Retailers to realize true hyper-personalization, the key consideration is around how to activate against the vast sets of customer data that many have. Generating insights is useful, however activating on a hyper-personalized basis is what will return on spend and true incremental sales lift. Activation against these data points will require solutions that are, unavoidably, AI-based, given that vast number of variations and decisioning hyper-personalization requires; coupled with sophisticated DCO (Dynamic Creative), which allows for scalable activation. 

While the above is easier said than done, the rewards to those who can make this leap are material.