The art and science of hyper-personalised shopping

In the world of online shopping, brands are increasingly using customer data to provide highly personalised experiences. This is achieved through the use of artificial intelligence (AI), which is capable of learning a great deal about your buying habits. To illustrate this, let's consider my recent experience with a boxing gym. After joining the gym, I received a text from a representative named Sam. He inquired about my first class experience and later suggested a package of classes suitable for a beginner. Sam continued to text me, suggesting other options such as a studio membership.

I had willingly provided my phone number to the gym upon signing up, aware that it might be used for marketing purposes. However, I was surprised to find out that Sam, the gym's general manager, was not the one personally sending these texts. Instead, these messages were likely automated, pre-written, and sent through a software based on the data the gym had collected about me. This is a common practice among many companies. They collect data on their customers and use these insights to target them with personalised shopping experiences. Some brands even engage in AI-assisted hyper-personalisation tactics to keep consumers spending.

Personalised shopping can take various forms, from texts from your favourite boutique to personalised emails from pet retailers. For brands aiming to retain customers and build loyalty, this type of marketing is becoming the new norm. It helps them stand out amidst the noise of social media and mass email blasts. Research shows that consumers expect companies to deliver personalised interactions and feel frustrated without it. Therefore, the more a company learns about their customers, the more effectively it can target them.