How SMEs can harness hyper-personalisation to redefine consumer engagement

Author: Gugu Mjadu

Hyper-personalisation is a marketing strategy that creates highly customised, contextual marketing experiences that reach the right customer, at the right time, and via the right digital platform. It’s the cutting edge of consumer engagement that uses artificial intelligence (AI), data, analytics, and automation to tailor a brand’s marketing to individual customers through a combination of software tools and hardware devices. Advanced cameras integrated with emotion AI software, for example, can analyse facial expressions to assess a customer's emotional state in real-time.

“Relevance is now the baseline of digital interactions. What businesses need to prioritise is resonance. To compete in the age of AI, you need to know how your customers feel at any given moment to ensure a seamless, personal experience with your brand that resonates with each individual,” says Gugu Mjadu, executive general manager: marketing at Business Partners Limited.

The promise and pitfalls of hyper-personalisation

As the backlash of the Google Gemini AI ad for the 2024 Olympics revealed, consumers are concerned about the increasing role of AI in areas traditionally seen as deeply human. The ad featured a prompt from a parent requesting Gemini to help their child write a letter to their favourite athlete. The criticism stemmed from the suggestion that AI could replace authentic and personal interaction.

The ad was perceived as tone-deaf considering the inappropriate context of the Olympics – an event that emphasises human connection and accomplishment. The irony is that hyper-personalisation promises to avoid these kinds of hit-and-miss scenarios with a human-centric approach that adapts to the nuanced, real-time emotional states of consumers.

Spotify’s Wrapped campaign is a prime example of hyper-personalisation done right. Each year, Spotify offers users a unique, data-driven summary of their listening habits, creating an experience that feels both deeply personal and shareable. The campaign has become a cultural phenomenon because they leverage customer data to create a meaningful connection thereby proving that personalisation can drive both engagement and loyalty.

How SMEs can implement hyper-personalisation

Adopting hyper-personalisation may seem daunting to small and medium enterprises (SMEs) due to the perception of high costs and technical complexity. However, SMEs can harness this strategy without the resources of a global corporation by focusing on three key areas:

1. Data collection and analysis

Gathering data is the foundation of hyper-personalisation. Start by using tools like customer relationship management (CRM) software, website analytics, and social media insights to understand your customers’ preferences, behaviours, and needs. Ensure compliance with data protection laws such as the Protection of Personal Information Act (POPI Act) to maintain trust.

2. Customisation at a micro level

Move beyond segmenting customers into broad groups. Instead, use advanced analytics and AI to deliver personalised experiences at an individual level. Spotify is a great example in that it allows its users to essentially create their own radio stations with tailored recommendations and real-time interactions that reflect the listening habits of each customer.

3. Automation and AI tools

Leverage affordable AI-driven tools to enhance your marketing efforts. Email marketing platforms, for instance, can personalise subject lines, recommend products, or schedule messages based on customer behaviour and AI-powered chatbots can provide personalised experiences.

Salesforce’s Agentforce AI for retail, for example, includes a library for pre-built retail agent skills that automate time-consuming tasks like order management, guided shopping, and appointment scheduling to deploy rapid shopper personalisation at scale. Rather than replacing human agents the tool was developed as an augmentation to increase employee capacity across marketing, commerce, merchandising, and store operations with “digital teammates” handling complex tasks with precision.

The human touch

While hyper-personalisation relies heavily on technology, the goal is to deepen human connections. SMEs must strike a balance between automation and authenticity. Consumers value brands that demonstrate empathy, transparency, and a genuine understanding of their needs.

“The key is to use technology to amplify, not replace, human connection. SMEs can build trust and foster long-term loyalty by focusing on creating authentic experiences that add value. Hyper-personalisation offers a way for SMEs to cut through the digital noise. Small businesses who leverage data and AI responsibly will create meaningful relationships that drive sustainable growth,” concludes Mjadu.