Hyper-Personalization in Retail: Benefits, Challenges, and the Gen-Z Dilemma

Hyper-Personalization in Retail

Customers often embrace hyper-personalization, which is defined by customized product suggestions and AI-powered support. Marigold, Econsultancy, Rokt, and The Harris Poll polls reveal that a sizable majority of consumers—including 88% of Gen Zers—view personalized services as positive additions to their online buying experiences.

Adopting hyper-personalization could increase customer engagement and loyalty, and benefit retailers’ bottom lines. According to a survey conducted in the United States by Retail Systems Research (RSR) and Coveo, 70% of merchants believe personalized offers will increase sales, indicating a move away from mass market promotions.

Adopting Hyper-Personalization

Hyper-personalization has drawbacks despite its possible advantages, especially in terms of data security and customer privacy issues. Retailers confront the difficult challenge of striking a balance between personalization and respect for privacy rights, as 78% of consumers worldwide show increasing vigilance about their private data.

Privacy and data security issues

Strong data privacy policies are a top priority for retailers to redu

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