Stalked by algorithms: The creepy reality of hyper-personalisation

Imagine stepping into an unknown store and being warmly greeted by your name, getting your desired birthday gifts when you haven’t shared it. Creepy, right?

While you’ve enjoyed immersing in the powerful telepathic abilities of Professor X from X-Men and Doraemon, reality doesn’t seem that bubbly.

This eerieness is akin to the feeling we collectively experienced after watching Netflix's 2020 documentary The Social Dilemma. It cleverly merged investigative documentary elements with gripping narrative drama, pulling back the curtain on the hidden algorithm of social media and search platforms. It's almost like the digital equivalent of CCTV aunties keeping an eye on you but in a more sophisticated way. But guess what, unlike the aunties in your neighbourhood, the perniciousness of social networking platforms isn't a glitch but a deliberate feature.

In today’s era of digital prowess, the advertising industry is in a whirlwind of change as companies strive for deeper, more intimate connections with consumers. Hyper-personalisation, fueled by AI technology, stands tall as the driving force reshaping targeted advertising.

While the buzz around hyper-personalisation implies that consumers crave this level of personalisation with brands—knowing their interests, purchase history, and browsing habits—it reaches a tipping point. When hyper-personalisation turns hyper-personal, it's downright creepy.

What makes this targeted advertising strategy invasive? How can brands stand out from the crowd? Is it safe? Let’s find out.

What is hyper-personalisation?

Hyper-personalisation is an advanced form of targeted advertising, harnessing new-age technologies and data analytics to create highly customised consumer experiences. Employing AI, machine learning, and behavioural cues, it transcends traditional demographic targeting.

Geolocation features embedded within mobile apps track users, offering real-time analyses of their daily routines and immediate customer movements. Hyper-personalisation utilises vast data resources to foster genuine interactions with customers.

Real-world applications include– Amazon, Netflix and Pinterest’s recommendation engines.

As demands for individualised experiences surge, this strategy is expected to create a revolution in 2024, aligning brands more closely with consumer preferences. 

Hit or miss amongst consumers?

Studies speak volumes about the power of personalisation in brand-customer relationships. An Epsilon report highlighted that a staggering 80% of customers lean towards purchasing from brands that offer personalised experiences. Similarly, Accenture's findings resonated loudly—91% of surveyed individuals favoured businesses that not only remembered and recognised them but also provided relevant recommendations and tailored offers. On the flip side, Gartner's research on marketing personalisation shed light on a stark reality– brands risk losing up to 38% of their customer base due to intrusive personalisation practices.

The pitfalls of hyper-personalisation became evident during the fallout from a 2017 Netflix tweet that left audiences feeling uncomfortably exposed, insinuating the platform's eerie knowledge of their watchlist.

In 2019, CBSNews reported a marketing campaign that sent postcard-style advertisements to women, congratulating them on pregnancy, regardless of their actual status. Similarly, in 2012, Forbes detailed how Target, by gathering purchasing data, accurately predicted a teenager's pregnancy before her mother and sent targeted coupons.

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Drawing the line between creepy and contextual: what can a marketer do?

While some marketing ventures blatantly cross into unsettling territory, others skirt the edges. For instance, if a customer searches for camping gear on Google and encounters subsequent ads on camping supplies across different websites, it might feel intrusive. 

Undoubtedly, hyper-personalisation carries immense potential for e-commerce, building a loyal customer base and long-term transactions. Yet, there's a delicate line it must maintain.

Martha Mathers, Gartner's managing vice president, stresses the need for mindful personalisation strategies–“Brands need to be extremely thoughtful in how they personalise their content today. Instead of utilizing every piece of customer data available, brands should focus on showing customers you can help them first, then layering in the right balance of data to boost message relevance, without making things too personal.”

So, where's the line? This brings us to our next section.

When does hyper-personalisation transition from ‘cute’ to ‘creepy’?

Consider these scenarios that toe the line between helpful and unsettling–

• Data: Users entrust their personal information to you. Misusing this data for self-serving marketing tactics breaches that trust and comes off as unethical. Not everything known about users should fuel marketing strategies.
• Purchase history: The Target example demonstrates the discomfort when companies delve into our purchase histories. While tailored recommendations might seem beneficial, the awareness of being monitored can unsettle users.
• Time: Timing matters. Receiving personalised communication at inconvenient hours feels invasive. No meticulously curated book list will appease a user at midnight.
• Place: Continuous ads akin to an obsessive stalker irritate customers. Brands should gauge the frequency and duration of ad displays, utilising information about user visits to time ads strategically.

How to avoid being intrusive? 

Here are 3 effective strategies for achieving the right level of hyper-personalisation.

Transparency 

The transparency element stands as the cornerstone of effective hyper-personalisation. Brands that openly communicate the data they collect, foster valuable customer interactions.

Consumers acknowledge and often appreciate data collection, recognising the value it can bring. However, trust fractures when data is shared with third parties without their awareness.

Justifying the reasons for data collection and delineating its intended use are crucial. For instance, if acquiring customer location information, explain its purpose—local discounts or personalised services and ask for consent. Similarly, elucidate the purpose behind collecting emails—for confirmations,  order updates, and newsletters or promotional materials.

Consider crafting dedicated sections like ‘How We Handle Your Privacy’ or ‘Your Security and Privacy’ alongside ‘About’ and ‘Meet the Team’ pages. Visibility and clarity are paramount, especially when handling diverse data types such as payment details, purchases, and addresses. 

Implement drip email marketing

Another effective approach is utilising drip email marketing for targeted advertising.

Drip marketing revolves around sending automated emails to your audience, induced by their actions. Crafting highly personalised, *timely* emails ensures your brand stays prominently in your audience's consciousness.

Take proactive steps

Customise their communication preferences, ensuring they receive content in ways that suit them best. You can also implement these tips–

1. Incorporate customer feedback which allows them to voice opinions on your services and suggest areas for improvement.
2. Offer specific data deliberately instead of merely allowing automatic collection, preventing assumptions and fostering genuine insights.
3. Let them adjust settings according to their preference. For instance, consider offering a discount as a token of appreciation. This creates a win-win-win scenario, boosting customer satisfaction, trust, and ultimately, conversion rates!

Consumers generally embrace hyper-personalisation; however, what erodes a brand's authenticity is the unauthorised use of data obtained through trading and processing without their consent.