The hyper-personalization of everything

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 |  
Oct 2023
 |  
Digital Native
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What: A piece about how customers have changed and now expect to be considered individually in each of their interaction with retailers.

Why it is important: The future is much more than simple CRM, which is already difficult to execute well.

The text discusses the evolution of personalization in American culture, tracing its roots from before the internet era to the present day and its implications for the future.

Evolution of Personalization:

  1. Pre-Internet Era: American culture shifted from communal to individualistic long before the rise of the internet. Evidence includes the increasing frequency of the word "I" in literature and the transformation of familial values.
  2. Family Structures: Traditional family dynamics changed, with fewer multi-generational households and an increase in single-person households. The perception of being unmarried also evolved from negative connotations to indifference.
  3. Consumerism & Technology: The rise of technology, especially the internet, accelerated individualism. Direct-to-consumer brands became popular in the 2010s, emphasizing personalization in products and services.
  4. Content Personalization: The media landscape expanded to cater to varied tastes, from TV shows to YouTube recommendations and algorithm-driven social media feeds.
  5.  Invisible Players: Companies like Klaviyo enable brands to offer personalized marketing, indicating the depth of personalization in commerce.
  6. Broad Consumer Ecosystem: The ongoing trend in consumer experiences leans towards convenience, affordability, and enjoyment, often equated with personalization. This trend can be traced back to the Industrial Revolution.

The Historical Increase of Personalization through Technology:

  1. Industrial Revolution: Introduced mass production, necessitating marketing for product differentiation.
  2. Automobiles: Spurred mass consumption with its influence on industries like shopping malls and credit cards.
  3. Internet: Fragmented culture further by offering niche communities and unlocking endless content, leading to even greater personalization.
  4. AI's Role: AI is set to boost personalization in the digital realm. Examples include apps like Meeno, which offers a personal relationship mentor, and applications in education, fashion, and healthcare.

Conclusion:

The 20th Century marked the age of mass consumption, whereas the 21st Century is shaping up to be the age of "bespoke consumption". With advancements in technology, especially AI, personalization will further intensify, catering products and services directly to individual needs and preferences.

The Hyper-personalization of everything