Every now and then, something new and revolutionary appears in the marketing world, changing it for the better. Experts often don’t even know they need it before it appears. But once it does appear, they can’t imagine their professional lives without it. This was the case with personalized marketing.
This strategy made a huge splash when it emerged. It improved the customer experience and, as a result, made businesses more profitable. With 80% of consumers more likely to buy a product or service if they have a personalized experience, it’s detrimental not to focus on personalized marketing. However, some companies still fail at implementing it. The lazy brands just add a first name to email subject lines and think that’s enough. Others are so confused with this strategy they don’t even try.
Today, we’ll focus on personalization and why you should use it.
Imagine that your birthday is approaching, and you decide to treat yourself to a bestselling book. You decide to skip the local bookstore and surf the web for a new title instead. After some time, you head to Amazon to go over its selection of books. While browsing for your present, Amazon offers a few recommendations.
You find the suggestions strange. Usually, Amazon does a much better job recommending products you like. What’s up with it now? Then, you notice that a family member is still logged into Amazon. Ah, so, that’s why cyberpunk books are suggested instead of historical novels. With a quick logout and login, you access your account and see recommendations that are to your taste. And now you know what to buy for yourself.
That, ladies and gentlemen, is how personalized marketing works.
Personalized marketing is a strategy that helps brands deliver targeted content to current and prospective customers. This is done with the help of data collection, digital technology, and analysis. The goal of this strategy is to engage customers (both existing and prospective) by communicating with them essentially on a first-name basis.
What’s more, personalized marketing is also referred to as “one-to-one marketing.” As the name suggests, it’s completely customized to the needs of one specific consumer. It’s obvious that it differs from traditional marketing, which casts a wide net to attract a small number of customers. With analytics becoming more sophisticated and data on individual customers growing, digital marketers are able to deliver relevant messages to their prospects now. Because of this, personalized marketing is the ultimate type of targeted marketing.
To be successful at this strategy, you need to collect various data from your customers. This includes their interests, purchase history, shopping preferences, and other. With this information, you can deliver personalized content that resonates among your audience.
Companies are increasingly becoming familiar with the strategy. For this reason, personalization has affected the way brands interact with their customers. Let’s look at some of the recent trends indicating how personalization is changing the marketing world:
Okay, now that we’re aware of the trends, you might be wondering why even try personalized marketing. Let’s find out below.
If you’re leaning towards the traditional side of marketing, you may wonder why companies are trying out something new. Well, in plain terms, it all has to do with consumers. After years of receiving irrelevant marketing messages, they stopped paying attention to their favorite brands.
They started despising cold calls and flipping the channel once meaningless ads appeared. Customers couldn’t help but think that businesses didn’t really want to help them. Businesses only wanted to make money, not caring that they were interrupting their customers. This belief exists today as well. One study indicates that 63% of customers are fed up with generic messages companies blast at them.
It’s obvious that customers want personalized marketing strategies. This is also indicated by below figures:
More than 60% of Americans say they will share their personal information with brands if it means they’ll receive customized communications. Customers want you to use their data in a way that benefits them. So, are you doing that?
It’s high time now to find out what the benefits of personalized marketing are. Buckle up and get ready to find out!
There are numerous benefits of personalized marketing for advertisers and content creators. Possibly the biggest advantage is that it allows brands to target individual existing and prospective customers. In this way, companies can boost engagement and conversion rates by appealing to the customer’s interests, likes, and needs. Apart from generating higher conversions, a customized marketing campaign can increase sales.
Furthermore, email marketing is one of the biggest beneficiaries of personalization. Indeed, personalized emails have 41% higher click-through rates. So, if you’re creating a new email campaign, pause for a second and think about how you can take it to the next level. Perhaps using a data driven strategy will yield better results.
Another benefit of this strategy is that it leads to happier customers. People crave customized advertising that appeals to them. If you offer this to them, they’ll feel more connected to your brand which will prompt them to spend money on your products or services. Customers grow frustrated when they receive messages/emails/offers that are irrelevant to them. Because of this frustration, they are more likely to turn their back on your brand and go to your competitor.
Therefore, if you want to influence consumers’ purchasing decisions, it’s important that you provide them with what they want. Less of generic messages, more of tailored content.
If you’re wondering how you can use personalized marketing, let’s look at two brands that are acing it.
Personalization is now one of the most effective methods companies use to promote their brand. Delivering the right message to the right customer will have more effect than anything else. Two companies are aware of this and they are:
It’s time to see how they’re taking personalization to the next level.
Netflix is winning at the personalization game. The streaming service recommends films and TV shows based on the content you’ve watched. But it also goes one step further. Namely, Netflix even personalizes movie covers to feature actors or actresses you know.
In addition, Netflix doesn’t make a move without being backed by vast amounts of data. It knows when you play or pause a show. Not only that, but it also notes when you stop watching. It collects information from 183 million subscribers and then creates a personalized experience. Sometimes it feels like the streaming service knows you better than you know yourself!
Amazon takes first place when it comes to behavioral targeting and personalization. But this isn’t surprising. After all, the company has a wide range of information at its disposal. As a result, it delivers data-powered communication in real-time. You receive personalized content, emails, and offers, and feel like Amazon truly listens to you.
Remember those “customers who bought this product also bought” messages? Well, they don’t happen by accident. Quite the contrary, they’re based on insightful data. In fact, 44% of customers make a purchase because of such recommendations. Another personalized feature that is a hit on Amazon is Wishlists.
Brands will quickly master personalized marketing. So, if you want to stay relevant, you should start thinking about it soon. Use the above two examples to inspire your future campaigns and begin boosting your sales and conversions!