Hyper-Personalized Product Content at Coke, Apple, and Google - Case Study Example

HYPER-PERSONALIZED PRODUCT CONTENT Student’s Name Course Professor’s Name University City (State) Date Hyper-Personalized Product Content Executive Summary All companies are now aware of personalization of products and services and its importance. Personalization has guaranteed progress of tailor-made goods and services for clients. The market trend already shows that hyper-personalization is the future that the marketers have been dreaming for several years. The hyper-personalization effect can be centered on the diffusion theory. Some examples of companies that have made use of the concept include Coke, Apple, and Google. Hyper-personalization is leveraged in three far-reaching ways: shared listening, context and content, and data exploration. The firm will make certain that the experts are available for the company thus able to ensure efficient and effective hyper-personalization of contents. Table of Contents Executive Summary 2 1.0 Introduction 4 2.0 Analysis 5 2.1 Prove that Hyper-Personalization is the Way to Go 5 2.1.1 Diffusion Theory 7 2.1.2 Coke’s Bottle Hyper-personalization 7 2.1.3 Google’s Art, Copy, & Code Project 9 2.1.4 Apple’s product engraving 10 2.2 Leveraging Hyper-Personalization 12 2.2.1 Social Listening 12 2.2.2 Data Analysis 13 2.2.3 Content and Context 13 2.2.4 Hyper-personalization as the Next Normal 14 2.2.5 Consideration 17 3.0 Conclusion 17 Reference List 18 1.0 Introduction All companies are now aware of personalization of products and services and its importance. Personalization has warranted the development of tailor-made products and services for the clients. Customers tend to prefer personalized products and information as opposed to general approach (Sundstrom 2012). As a result, personalization ensures that the distinct requirements of the clients have been met thus ensuring customer satisfaction. In any trade, the chief goal should be fulfillment of the customer as the cliché goes; ‘the client is the boss.’ However, the dynamic market seems to have taken the personalization approach a notch higher (Dunlap Jr 2014). The contemporary drift has been hyper-personalization as opposed to just personalization. In the wake of great competition in the market, hyper-personalization has become one of the mechanisms to gain an advantage (Subramanyan 2014). Hence, it is imperative to understand the variance concerning personalization and hyper-personalization. Hyper-personalization involves the use of the information to deliver more directed and custom-made amenities, content, and goods. Before the great technological development, it would have been a bit hard to develop hyper-personalized content, products, and services. In explanation, the customers’ information could only be retrieved from the profile data or from the third-party providers. The state of matters is diverse nowadays. The hasty evolution of digital and social channels sanctions the assemblage of more tailored information. Consequently, companies can afford the hyper-personalized products and services to their consumers. Attention should, therefore, be paid to the customer interactions and profiles so as to start developing the ideal personas for engagement in the future. Therefore, the marketing teams will be able to refer the right information to the right person at the right time, hence, value-added interactions with the clienteles. 2.0 Analysis 2.1 Prove that Hyper-Personalization is the Way to Go The market trend already shows that hyper-personalization is the future that the marketers have been dreaming for several years. Hyper-personalization is a tool that allows the companies to collect vast customers’ individual information and use it to market for the products. It is the use of discrete figures to give more quantified and tailored products, contents, and services (Subramanyan 2014). Hyper-personalization has allowed marketers do something that they formerly reflected to be impossible. In clarification, it permits for the marketers to connect more with the customers thus augmenting the customers’ loyalty. There are a number of companies that already implement the hyper-personalization concepts so as to drive the customer loyalty and increase sales. A good example is the Coca-Cola's personalized bottles, Google’s project of Art, Copy, & Code, and Apple’s product engraving (Subramanyan 2014). The three case studies will further be explained. Some of the companies that engage in hyper-personalization have conducted studies indicating success in the concept. For instance, iTunes study that was conducted by Wharton researchers indicated a 50% increase in purchases of customization products on the test group (Subramanyan 2014). The escalation was a jolt even to the Wharton researchers. The operation included the customization of artists and songs centered on the personalized data recovered online. A comparable setting was experienced on Netflix. The company argued that hyper-personalization data brings contributes to more than 60% of its rentals (Subramanyan 2014). The realism of hyper-personification also has been made tranquil due to the progress of technology, more so, the internet. The Internet has made it easier to collect corpus data involving the customers. It is probable to track the patrons that click on the advertisements. Furthermore, email subscriptions, demographic information, purchase history, and website visits can give crucial information on the clients (Lincoln & Thomassen 2009). However, the internet should only make the initial step of collecting personalized customer information. Even though the conventional online tracking tools has made it easier for the companies to offer more customization and segment their customers more easily than ever, most companies still struggle to hyper-personalize their services, contents, and products (Stidsen 1975). Consequently, a business that manages to customize the products at the individual level will be having a great break through in the market (Mikáčová & Gavlaková 2014). Information obtained from social media has comprehended the insurgency of the notion behind business customization hence making hyper-personalization easier to implement the business structures. The likes and dislikes publicized across social media platforms enable the companies to be able to interact with their customers at the same level of thinking. The appropriate hyper-personalization should integrate the information in the social media with other sources that give the customer data to enable better understanding and communication with the customers at the personal level. 2.1.1 Diffusion Theory Hyper-personalization can be grounded on the diffusion theory. The focal phases of the theory comprise trial, awareness, evaluation, interest, and adoption (Kaminski 2011). Hyper-personalization concept resides at the final stages which are adoption. Awareness Interest Evaluation Trial Adoption Hyper-personalization has changed the human behaviors and attitudes. The model adopts the central and the peripheral routes (Roman 2003). The central route is for those who have an interest in the concept while the peripheral route is for those who have not yet made their mind on a particular concept of the idea. 2.1.2 Coke’s Bottle Hyper-personalization Coke took hyper-personalization to the next through introduction of names on the bottles and cans. As a result, the sales augmented as customers dashed to the stores to look at the cans with their corresponding names. The increase in buying was basically due to the names and suitable information placed on the cans. Humans seek to be to be recognized and the principle applies even in the business market (Doucet-Benoit 2016). Individuals strive for a sense of belonging, to be understood, and to be titled using their real names. It does not matter whether they truly belong or not, what matters is making them feel so. Triggering the insight that they are renowned make them have a sense of belonging thus not only attract them, but also craft a sense of loyalty. Source: Doucet-Benoit (2016) Coke understood that it is difficult to make people feel happy since they would have to conduct several research studies to confirm if what they hear is really right. Nevertheless, the company vowed to combat all trials and influence the patrons. The idea was to make the customers seem passionate as opposed to simply excited thus generating a sense of sustainability. Hyper-personalization is important, more so, to a product that has already existed in the market for a while. In explanation, the product being in the market for a while means people have already used it and might have developed some alternatives relating to it. The customers already know the product at this point and are using it (Hutton 1996). Making patrons buy an extra bottle of the identical product is, therefore, close to impossible. A personal approach, however, can break the impossibility as customers personal issues are addressed. The subjective approach empowers the consumers to be more in contact with the produce hence lust for more products. Uniqueness is, therefore, a significant feature of marketing. The notion behind hyper-personalization is based on human psychology. In explanation, when the experience is common among the customers, they tend to stop caring about the product. A commendable service is based on thoughtfulness. The clientele must feel that they are appreciated I order for the business to proliferate the figure of sales. 2.1.3 Google’s Art, Copy, & Code Project Google’s Art, Copy, and Code Project is an indication that hyper-personalized marketing can no longer be evaded. Online marketing has been approached using different methods with Google Company taking it a notch higher. Google has presented the “Code” on the art and copy team making the commercials divergent (Govil 2013). The code has ensured the introduction of a completely new concept in the hyper-personalization. It connects the activities conducted throughout the day into the web through data. As a result, people can use the data to do their own things in the future thus making life more fun and easier. Google has been partnering with other innovative brands to ensure that innovation is achieved through the project. Advertising experienced a creative uprising in the 1960s that occasioned the partnering of the art copywriters and directors (Govil 2013). As a result, Google established the project art and copy. The advertisement industry is going through an identical process. However, this time, Google has merged technology in the practice. Adding Code to the core creative process enables new forms of engagement and expressions of the brands thus making it the most creative team for the evolving world. However, the need for emotional stories, human insights, and breakthrough ideas has not changed. The code enables innovative experiences but does not in any way the advertising industry’s storytelling skills. The connected world offered gives brands more touch points and dimensions but there is a need for more if the real connection is to be ensured. The project ensures that Google services are customized to its customers. It enables the customers to determine how to interact with the trademarks. Customers are given the chance to perceive only what they wish to comprehend and not what the producer wants. The definition of creativity in Google has also chained to ensure customization of processes. Creativity enables the customers to determine the ads that they want to interact with in the net (Govil 2013). As a result, it will promote innovativeness because the adverts have to impress for the customers to enjoy watching. The manufacturers, therefore, no longer have to think of the customers in terms of multitudes. Instead, they have to approach them at the individual level. Google will encourage using hints and real-time data, interests, and locations to help distinguish the ads in a way that make them more evocative and prized. Technology is going beyond how the messages should be tailor made for the audiences. The subsequent vast thing will entail conversation with the customers over the Internet. 2.1.4 Apple’s product engraving Apple’s act of engraving the products is also another form of hyper-personalization of products. The fact that Apple decided to introduce it into their service shows how the concept has gained relevance in the market. The free engraving services ensure that the products are extra personalized as per the requests of the customer. For instance, if the customer wanted to purchase an Apple iPad or iPod, the birthday message can be written on the merchandise to guarantee that it is personalized. The engraving is made using a laser and can take any type of message that the customer wants (Apple 2016). Refer to the image below as a sample of engraved Apple’s products. Source: Apple (2016) The engraving of the product is done upon the customer buying it. The customer, therefore, can say whatever message that they want to put on the product (Apple 2016). The message can be a message relevant to what the product is meant for, a name, or even anything that the customer would prefer. The personal message is an example of hyper-personalized product content. It is important to state that the engraving is completed duty-free. Apple decided to offer the free engraving on iPods and iPads so as to enhance the worthiness of the products. Engraving augments value to some customers hence increasing sales and profit margin. Just as any other hyper-personalization process, engraving does not come with a zero cost. Even though it is expensive, the return margin associated with it makes it a venture worth the price tag. Nonetheless, in some instances, Apple used to charge for the engraving services. On the other hand, there have been arguments to why Apple does the engraving free of charge. A number of people have alleged it is a strategy to weaken the secondary market. In explanation, since iPads and iPods are durable products with Apple as the sole producer, engraving would make it harder to resell the product. The disagreement has been that Apple wants the products to be less valuable to the secondary market consequently making them go to the company for additional products. Some also have argued that engraved design makes the product, not as much of durability but that is not the case. Apple engaged in the engraving practices as a way of hyper-personalizing it products for the increase of sales. The engraving is a market strategy that aims to ensure that the products are customized as per the needs of the customers. 2.2 Leveraging Hyper-Personalization Hyper-personalization can be leveraged in three broad ways. The first method is through social listening while the second is through data analysis (Subramanyan 2014). Lastly, context and content are crucial for hyper-personalization of services and products. 2.2.1 Social Listening The first step in hyper-personalization is actively listening and understanding the needs of the clients or customers. The company should focus on identifying the dislikes and likes of its customers. Furthermore, it should identify challenges and issues that the customers or clients raise. Understanding these details about the audience will ensure that the main points in the purchasing cycle of the customers are given an in-depth look (Subramanyan 2014). Furthermore, factors that affect the buying decisions of the customers will also be taken into account. The company should, therefore, begin listening to conversations that take place around the products, competitors, and industry (Prindle 2011). It should identify the context of individual conversations and participate in them at the right time. The focus should not be based on the selling of the products at this stage but rather building trust with the customers. The company can also consider engaging the thought leaders and top influencers to ensure that the public is engaged in the brand or product in question. 2.2.2 Data Analysis Listening to the client is only efficient and effective when the data associated with it is collected. The data can be captured from the social interactions to profile information. A large amount of data collected in such scenarios the better. The data will enhance and create the information quality of the leads and the customers (Subramanyan 2014). However, there has been a debate on the appropriate method of collecting data: using the segments to collect data or collecting it at the individual level. No matter the method used, capturing the data insights is the most integral part of the process of hyper-personalization (Jerry 2015). For instance, if a client was searching for a flight to a particular destination, a travel agency can use the information to target the customer and issue appropriate traveling packages. 2.2.3 Content and Context Upon listening to the audience, they ought to be grouped into appropriate customer segments. At this stage, the company can start developing personalized content (Subramanyan 2014). After which the content can be delivered in a planned and appropriate way and assist in the driving of the engagement. The process will help the company nurture leads of high quality. The personalized contents should be shared as per the needs of the customers and location. Placing the process into the context of location and needs will make the message that the company wants to pass to the customers become more relevant (Subramanyan 2014). The company should, therefore, ensure that their contents are socially engaging and it is delivered using different devices. Consequently, customers will be happy based on the positive experiences. Hyper-personalization is about maximizing the opportunities presented in the market and customizing the contents to fit the needs of the customers. Companies should, therefore, engage the opportunities to their advantage (Subramanyan 2014). In explanation, the right audience should be targeted throughout the lifecycle of the customer. Driving engagements and meaningful connections among the audience ensures an increase in the leads and improves the conversation. 2.2.4 Hyper-personalization as the Next Normal As of 2015, e-commerce had gained high popularity and ubiquity thus making online advertising be common among the businesses. Today, advertisements are everywhere on the website even when it just a browse of the social media or a web search. The website if full of suggestion posts promoting a service or product; market email; or a banner advertisement (Sridhar 2016). Interaction with the customers in the business industry is becoming more personalized to the extent that some of the consumers might feel uncomfortable. For instance, the online retailers are now able to know that the thinking of their potential clients through their postings. As a result, they will be addressing the customers as per their needs individually and not the perception of the general market. The inexperienced consumers will, therefore, have no option but to coincidentally come to terms with the changes. Personalization technologies will be used to ensure that marketing is more effective and the potential customers are converted into more sales. Previously, personalization was based on the items suggested as per the customer’s suggested items that included customer relationship management interactions, loyalty card records, opened promotional emails, clickstream data, and channel activity. Furthermore, it took into consideration the customers’ ‘wish list’, transaction records, and purchase history (Sridhar 2016). However, these methods are no longer effective thus referred to as quasi-personalization. The future of hyper-personalization entails taking into activity into the customers’ behaviors, values, attitudes, interests, and activities. Consequently, companies will be able to produce appropriate products that are specific to the needs of the customers and also persuasive campaigns. Event sequence and attribute analysis is the next step of marketing. The two techniques of computation will allow the achievement of hyper-personalization. Both event sequence and attribute analysis will ensure that the customer is the center of communications. The two will focus on the reliable and rich profiles of the consumers. Attribute analysis entails breaking down the customers into a map-like structure that will help define each of their attributes (Sridhar 2016). For example, the analysis will help determine the customers’ gender, age, place of living, household size, likes and interests among others. The social listening technologies have made the attribute analysis process much easier due to the most popular social media platforms such as Twitter and Facebook (Winchell 2010). The advancement of platforms has ensured that the markets can be understood better based on the information on these sights. The retailers are today able to develop tailored suggestions and better campaigns. For instance, for the ‘eco-friendly’ lot, the retailers need to understand that efficiency is important. Event sequence analysis, on the other hand, helps in the monitoring the buyers behavior during purchase. It entails taking account of the number of events that the customer usually goes through before and after buying a product. For instance, it includes the login methods, social media interaction, items added to the basket or wish list, and making the decision to buy a particular product. The combination of the two techniques can, therefore, be used to develop a hyper-personalized marketing in which customers give appropriate suggestions as they interact with the retailers (Sridhar 2016). The interactions can be made through displaying items that interest the customers, web page offers, by email, and chat bot. For instance, a customer who has bought gymnastic shoes will not be offered more of that product but instead will be given other equipment as per their needs. The identification of such instances can be made possible through the analysis of habits and interests. Analysis of the presence of customers in the social media is able to show when the customer is available to view the ads. For instance, if the customer was looking for running shoes, through the social media it can be determined that he or she maybe runs on Sundays thus giving an opportunity for the purchase of the product and delivery. Instead of being given several ill-timed suggestions, the customers, in this case, will be given important suggestions that address their needs. As per the retailers, their goals will entail making the appropriate offer thus making the process of shopping faster and easier hence creating more sales. 2.2.5 Consideration The element of consideration in using the social media platforms to develop a hyper-personalized market approach is majorly privacy. It is important to seek the balance between an exceptional personalized experience and respecting the level of privacy of an individual. Even though hyper-personalization can lead to customer delight, if not conducted appropriately, it can lead to his or her discomfort. The discomfort will depend on the sensitivity of the customer, the source of the data, and the data type being used (Sridhar 2016). The customers should be given a chance to opt out of the forms of services offered whenever possible. Furthermore, they are supposed to be given the mandate to choose which of their data can be used or accessed by other entities. The retailers, therefore, need to inform the customers how they are conducting the monitoring activities (Grunig & Grunig 1998). The customers also should be informed of the type of information that is to be collected. Ill timing and irrelevance can make the customer consider the ads to be a nuisance hence damaging the relations between him or her with the retailer. Hyper-personalization is the appropriate root to take that will allow the customers enjoy best practices while it is also a boost for the bottom lines of the retailers. 3.0 Conclusion Hyper-personalization is the trend that everyone is talking about. However, retailers need not imitate or duplicate what other companies have done but to focus their innovative ideas in the field. It is no longer a rocket science to develop hyper-personalized products, contents, and services in the wake of the Internet generation. The Internet has made data available thus allowing for hyper-personalization. Products can, therefore, be made to address the needs of the customers at the individual level as opposed to groups. The attention span of the customers has been always shrinking. It is, therefore, appropriate that the communication is tailor-made in a certain way that customer attention can accommodate. In explanation, the communication should be of much interest to the customers for them to be able to look at it twice. The marketers are, therefore, faced with the challenge of developing contents that are relevant and compelling. Hyper-personalization is still at its initial stages. The brands that will be able to leverage the hyper-personification, therefore, will have a great competitive advantage in the market. Hyper-personalization will increase sales in the company same as the profit margin. It will make the consumers feel part of the products since they are tailor-made to them. Customers will, therefore, be coming back for more of the products thus increase in sales. The role of my organization will, therefore, entail issuance of the experts to ensure hyper-personalization is achieved. Reference List Apple 2016, Engraving and gift wrap. Available from: < http://www.apple.com/shop/engraving- and-gift-wrap >. [27 May 2016]. 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