Personalized marketing is the tailoring of the marketing strategy based on the data collected by a company to deliver customized messages to each customer or prospect. Often it is also known as individual marketing or one-on-one marketing. It is a marketing approach that allows businesses to leverage the power of data through analysis and AI.
Benefits Of Personalized Marketing
If the marketing personalization strategy is implemented successfully, both enterprises and customers stand to gain. Some of its prime benefits are:
- Better Customer Experience – No customer is comfortable giving out their personal information. But you can turn the tide of things by giving them something in return. This sweetens the deal, and they are more likely to fill out a form or a questionnaire, participate in a survey, etc. In turn, the brand has to ensure the customer data is kept safe and all sensitive information is protected.
- Increase ROI – Different customers prefer different channels of communication. Some want only emails and no phone calls, while others may prefer instant messaging. The key to increasing revenue is correctly identifying the customer’s preferred channel to interact with and using it to engage them. Here AI and automation both come to the rescue of marketers and make the work of follow-ups, presenting special deals, grievance redressal, etc., very easy.
- Upswing In Brand Loyalty – Any business successfully implementing a personalized marketing strategy will always have higher brand loyalty because of its gratified customers.
- Uniformity Across All Channels – Personalized marketing approach gives a chance to all brands to have consistency or uniformity across all channels. It means the app, in-store, messaging, website, emails, etc., should provide the same experience.
Creating A Successful Personalized Marketing Strategy
There are 4 basic steps to creating a successful personalized marketing approach.
- Compare – To begin with, you need to know the status of your existing marketing personalization strategy. Now compare it against those that claim to give better results. Only if you find the existing strategy lacking should you go ahead with improving it.
- Capture – Personalization is impossible without data. Your existing policy is based on past data. The fact that it needs upgrading means you require current data along with the historical one. So get cracking and add a few lines of code to your web pages so that more data is available for renewed analysis.
- Evaluate – Now that you have up-to-date data, you can tweak your marketing personalization strategy for better performance. At this stage, you need to set up controls as well. After a few weeks, run the performance test of your system against the controls. The difference will highlight the highs and lows, which gives you another chance to improve things.
- Act – Business decisions need to be backed by data. Let automation and analysis tools do all the heavy calculations so that all remains for you is – decide. The system will tell you the items that are overstocked, about to run out of stock, not selling well, etc. You don’t have to waste time lifting data and analyzing it.
Forms In Which Marketing Personalization Can Be Implemented
The big question now arises about correctly implementing the marketing personalization strategy. These tips are sure to help smoothen the process:
- Look For The Right Technology – Outdated technology will not cut the deal anymore. So look for an up-to-date smart engine that collects data, aids in automation, and is backed by AI. Use tools like IP Geolocation API, which allows you to provide unparalleled personalization to your website visitors.
- A Devoted Team – Marketing personalization is not a one-time deal. It is a continuous improvement process requiring a dedicated team of expert professionals.
- Creating A Single Unified Customer Profile – By piecing together the data collected from various channels, aided by automation and Artificial Intelligence, marketers can put together all the customer information into a single harmonious customer profile. Since the task can be challenging, marketers must be on their toes.
- Smart Segmentation – 85% of brands only do simple or basic segmentation. Unfortunately, that’s about the limit of it. As a result, they cannot exploit the benefits of smart segmentation across all channels and cannot make the most of marketing personalization. It’s time for marketers to adopt intelligent segmentation and use it to their advantage.
Examples Of Marketing Personalization
Let us see some examples of marketing Personalization:
- Targeted Emails – Personalization allows marketers to tailor their email campaigns according to the needs and drives of the audience. You can use sign-up forms, small questionnaires, or ask for whom the purchase is being made (themselves or someone else) to understand your customer and learn what moves them.
- Precise Social Media Marketing – To enhance customer satisfaction and build brand loyalty, use the various social media platforms to interact with the audience. Do promos, run contests, offer a freebie on completing some task, etc. The idea is to motivate the client to communicate with your brand.
- Appropriate Product Recommendations – If a person is searching for long johns to combat the fierce cold, they would be pissed to see product recommendations of shorts and t-shirts. So be clear about the customer requirement and give relevant product recommendations through content personalization. The same applies to services as well.
- Fear Of Missing A Deal – Everyone would want to get a piece of the steal deal. The fear of missing out on a unique opportunity often drives them to complete the sale quickly. So show them how many people are looking at the product or within how many days it is likely to be sold off. You will be surprised to see how fast the sales get completed now.
Customers have very high expectations of brands today, for which the brands have to work hard. The more satisfied the customer feels, the better it is for the brand. This level of commitment is possible only through marketing personalization. Therefore, businesses need to harness the power of data and leverage it to their benefit using personalized marketing tools like CRM, data analytics, data management platforms, etc. The tailored experience delivered through marketing personalization helps businesses increase their ROI in leaps and bounds. Simply put, it is necessary and must be embraced with full enthusiasm putting aside all doubt and restraint.