A Helpful Brand: Putting Customers First While Balancing Hyper-Personalisation

By Nick Blatt – Head of Personalisation & Identity at Coles Group

The use of real-time data, artificial intelligence and advanced analytics to service customers with highly tailored experiences, or to put it simply, hyper-personalisation, has reshaped the connections brands can have with their consumers.

Consumers enjoy more relevant and engaging shopping experiences, easier decision making and higher satisfaction. Brands enjoy the conversion rates, sales and loyalty. It’s a win-win scenario and why we see the general shift away from the broad-stroke and high-waste traditional marketing approach towards the more nuanced.

While hyper-personalisation has its advantages, it’s important for brands to avoid crossing the line into uncomfortable territory. A real-life example is Spotify's 2016 campaign, which humorously highlighted unusual user behaviour. One of the ads read: “Dear person who played ‘Sorry’ 42 times on Valentine’s Day, what did you do?” While some found this funny, others felt uncomfortable with such specific data being publicly showcased. It shows how quickly personalisation can shift from helpful to intrusive when not handled carefully. You can read more about this example?here ( Notable Life).

So, how do brands successfully tread the fine line?

1.?Transparency – Epitomised in the Cambridge Analytica scandal , businesses need to be open about their data collection and usage practices, giving customers the reins over their personal information.

2.?Fair value exchange – Some airline loyalty programs require customers to accumulate an excessive number of miles for very limited rewards, and some retail programs offer minimal benefits like 1% return on purchases despite collecting extensive personal data. Customers should feel that the personalised experiences they receive are worth the information they provide or brands risk customer dissatisfaction, distrust and reputational harm.

3.?Actively demonstrate respect for the value of your customers’ data – A data breach undermines the value exchange customers have participated in and can break long-held trust in an instant. Implementing strong protection measures and allowing customers to customise their level of personalisation is a non-negotiable for brands. Some online fashion retailers for example offer their customers the opportunity to opt-out of upcoming Mother’s Day or Father’s Day related content in an active demonstration of respectful use of the data they have obtained to deliver a positive experience.

4.?Responsiveness and Adaptability?– Brands must be responsive to customer feedback and adaptive to evolving privacy concerns. Listening to customer preferences and adjusting data practices accordingly helps ensure that personalisation efforts remain relevant and respectful. This includes being quick to react when customers express discomfort or dissatisfaction, whether through social media, reviews, or direct feedback. Regularly refining personalisation strategies based on customer insights not only improves customer experience but also shows a commitment to evolving with consumer expectations, helping to foster long-term trust and loyalty.

So what happens if brands make a mistake?

When brands make a mistake, owning up and saying "sorry" is more than just a compliance obligation—it's essential for preserving both brand reputation and customer loyalty. A sincere apology can demonstrate accountability and rebuild trust, showing customers that the brand values their relationship. Brands should acknowledge the issue transparently, explain what went wrong, and outline steps to fix it. This approach shows respect for the customer’s experience and reinforces the brand’s commitment to integrity. Going beyond legal obligations, this type of response can actually enhance a brand’s reputation by showing it’s human and willing to learn from mistakes.

Hyper-personalisation is a dance between business innovation and customer respect. When performed with sensitivity, it can elevate the customer experience to new heights, building a foundation of trust that sustains long-term relationships and business success. By staying transparent and fair we can ensure that hyper-personalisation remains a dynamic and positive force in the ever-evolving world of eCommerce and marketing.

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