Personal space

Personalised shopping can take many forms, including texts from your favourite boutique to Starbucks' birthday rewards, to personalised emails.

For brands wanting to retain customers, build loyalty, and convert in a modern, data-driven way, this kind of marketing is now the new normal. And it's essential. Many businesses have found tailored communication helps them break through the noise of social media and mass email blasts, which increasingly miss the mark in an age where consumers are overwhelmed by digital marketing.

Hyper-personalisation
Hyper-personalisation is about making consumers feel special and creating positive experiences that resonate with them. Consumers are desiring brands to understand their day-to-day and how they use and require products and services. 71% of consumers expect companies to deliver personalised interactions, and 76% are frustrated without it according to research conducted by McKinsey.

Hyper-personalisation takes a step further from using just the name and search history of a customer. Instead, it requires gathering behavioural and real-time data of customers using both AI and human interaction.

AI personalisation
AI tools can help brands learn more about their customers, being able to understand patterns in past behaviour, to predict consumer behaviour in the future such as their next purchase dates or the probability of a repeat purchase, for instance – so brands can respond accordingly.

Customised interactions will start to appear at every step of a customer's ecommerce journey, tailored to not just their shopping behaviour, but also the weather of their current locations and their body types, resulting in tactics as drastic as individualised pricing to make each customer feel special – and be more likely to convert to a sale. AI tools can react in real time with offers and suggestions of style, size, and colour, the same way a sales associate would respond to someone walking around a store.

Sephora offers customers personalised experiences through various channels, including their mobile app, which allows customers to book in-store makeovers and consultations. The app also enables makeup artists to log each product used in a customer's profile, so they can try on products and receive personalised recommendations virtually. Sephora's recommendation engine uses customer data, predictive analytics, and personalised quizzes to help customers find the perfect products. Their loyalty programme tailors messages based on each recipient's loyalty tier, and members can use programme points to donate to Sephora's partner charities.

6THStreet recently launched its first phygital store at Dubai Hills Mall to offer customers an integrated omnichannel experience. Customers are able to use tablets to browse, pick and add items, just like they would while shopping online on the app. They can be trailed at the station or in an assigned fitting room, where an interactive screen allows them to exchange sizes, request assistance, and select purchases.

Human personalisation
The human element of personalisation is as important as the AI element and its not to be ignored. Human personal touches make a significant difference to customers looking for a more unique and tailored in store experience. This kind of engagement with customers is something that Lively Experience store in New York (seen above) has mastered. The moment you step into the store, you are handed a beverage, and a salesperson takes your measurements and guides you when shopping. The store’s ambience is deeply personal, complete with greenery and lounge chairs that give clubhouse vibes.


The benefits of personalisation marketing are substantial: brand personalisation efforts are estimated to drive a 5% to 15% revenue lift, reduce customer acquisition costs by up to 50% and increase marketing ROI by 10-30%. However, it's essential to have clean and up to date data. Untidy data gives rise to errors and irrelevant information for the customer – making personalisation a negative experience.

Personalisation will continue to evolve with advances in AI, analytics, and data creating new frontiers for marketers. Physical spaces will be "digitised," empathy will scale, and brands will use ecosystems to personalise journeys. It is important for brands to stay ahead of the curve and keep personalisation evolving.

Jemima Scott