Home » ‘Hyper-personal or uber-creepy?’ Storyblok warns brands of the growing risks amid ongoing innovation leaps in AI

‘Hyper-personal or uber-creepy?’ Storyblok warns brands of the growing risks amid ongoing innovation leaps in AI

by Tech Reporter
2nd May 23 11:24 am

Amid ongoing innovation leaps in AI-enabled marketing, enterprise CMS tech leader Storyblok has been quick to warn brands of the risk of taking hyper-personalisation marketing measures too far –  and end up creeping out customers rather than securing sales.

As technology-enabled customer data increases and customer expectations continue to evolve, it is expected that hyper-personalisation will become an even bigger focus in 2023 for brands seeking to excel amid a competitive marketplace. In fact, according to one report1 two fifths (41%) of marketers state ‘hyper-personalisation’ as their highest priority this year.

However, as latest advances in data, analytics and AI unlock new opportunities for businesses to forge even deeper bonds with customers, Storyblok has been quick to assert that there is a very fine line between what personalisation customers might find useful and what they would consider creepy.

Storyblok co-founder and CTO Alex Feiglstorfer, comments: “It’s fantastic to see new innovation leaps in AI, such as Chat GPT, enable brands to deliver even more personalised digital campaigns. Done well, it can help generate demonstrable value for every pound of marketing spend at a time when fast ROI has, perhaps, never been more important.

“The danger though, is the risk of taking it too far. We’ve all been there when an online ad pops up that seems so targeted that you think to yourself, ’how did they know I wanted that?’ and ponder whether you’re being monitored. The result is far from an effective marketing tactic, but can end up leaving people feeling unsettled and actually wanting to create more of a distance from the said brand.”

Across the board, studies continue to suggest greater personalisation yields better ROI and customer-retention. In fact, one report suggest more than half of UK consumers would be happy to trade personal and preference data to feel part of a brand’s community.2

Get it wrong though and the business impact can be huge.  The same report estimates a 60% increase in UK consumers who feel frustrated with a brand whose personalisation initiatives don’t recognise their unique desires and needs. A separate report suggests brands can lose 38% of customers due to poor marketing personalisation efforts.3

Feiglstorfer continued: “Ultimately, while there is no doubting AI and big data’s role in the future marketing mix, brands need to use it in a way which is careful not to breach their customers’ trust.

“To start with, it’s about being transparent and open about how their data has been collected, why and how it will be used.

“It should also be clear how they can opt-out. It goes without saying too, that brands should be careful not to over-saturate their target space too often or they could run the risk of brand fatigue.

“Investing in a highly flexible content stack, such as a headless architecture, is a must too, ensuring marketers are able to flex to the ebb and flow of changing customer habits and behaviour easily to remain on the pulse.

“Ultimately, more than ever customers value trust – do all this and brands can be sure to strike the right balance between personalisation and privacy to boost ecommerce conversion rates.”

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