Driving Hyper-personalization in Consumer Relationships

Driving Hyper-personalization in Consumer Relationships | Case Study
  • June 1st, 2020

A shock event can drastically change consumer perceptions. New norms like social distancing demand that retailers replace physical consumer touchpoints with digital ones. And hyper-personalization in retail communications is the natural choice to strengthen consumer relationships over these digital channels.

A leading retailer was targeting consumers with generic marketing emails resulting in low consumer engagement and consequently, lower conversion. They wanted to capitalize on the opportunities arising from understanding each consumers’ preferences. They approached Mu Sigma to go beyond personalization and make a drastic transition to hyper-personalized emails based on:
• Consumer browsing behavior
• Consumers’ past purchases
• Consumers’ response

Using our new Art of Problem Solving to make this transformative move, we developed a framework to provide holistic consumer insights across:

Purchase Intent/Need: Uncovering behaviors and metrics that indicate a high propensity to purchase
Behavior: Decoding the consumer’s actions and thought processes across their engagement
Engagement: Quantifying the extent of consumer engagement at any touchpoint

These insights were derived from three models that:
• Track buyer behavior with high granularity
• Forecast consumer propensity for buyers and non-buyers
• Determine recency of category preference for both buyers and non-buyers

The model insights were used to populate hyper-personalized content into dynamic emails and deliver customized messaging to each consumer.

Not only did this approach help integrate content for an omnichannel view of the consumer decision journey, but it also:
• Reduced opt-out rate of email subscription by 4%
• Doubled the number of targeted consumers