We have entered an age in which customer service and user experience are valued above all else. Over the last decade, personalization in the business world has become more and more prevalent. From marketing and customer communication to product creation and beyond, it is now the expectation of most consumers. In fact, 94% of customers and marketing professionals said personalization is “important,” “very important,” or “extremely important.” As competition in almost every industry increases, companies are steering away from generalized, hard-selling techniques to more effectively reach their audiences, “delight” them, and leave a lasting impression.
Any business owner worth their weight in leads knows the benefits of personalization—and yet, a surprisingly large number of business owner have not fully embraced this strategic tactic.
What Is Personalized Marketing?
Creating personalized marketing and experiences has everything to do with good quality data and the way you use it.
Brands combining consumer data with advertising technology are delivering individualized messaging, products and experiences to consumers in more innovative ways than ever.
Compare the classic example of simply addressing emails to consumers by name, to this colorful and eye-catching email sent by Lyft. Aside from the visual appeal, the email proves the brand knows exactly how its consumers like to use its services.
Personalization tactics can be deployed in a number of ways, and some are more obvious than others. Improved technology, algorithms and the way data is collected and analyzed mean these tactics are becoming more subtle, and better ingrained.
Today, we’re seeing more and more brands providing distinct web and mobile experiences for each of their customers. This is happening a lot in the ecommerce space, where content and offerings display differently depending who’s on the receiving end.
Some consumers might not even realize how many websites are purposefully displaying more of what they’re interested in.
Personalized Marketing Examples
The famous ‘Share a Coke’ campaign, first launched in Australia in 2012, still retains its title as one of the most original examples of personalized marketing to date.
The idea was to spread advocacy and love for the brand by replacing the soft drinks logo with consumer names, encouraging people to share with friends and spread the brand’s message using the hashtag #shareacoke.
In the wake of the original campaign, Coca Cola Co. saw a rise in sales for the first time in over a decade.
Takeaway: Don’t just make it personalized, make it shareable.
Starbucks successfully keeps customers engaged with its gamified mobile app. Integrating the brand’s rewards system with the ability to customize and order drinks via the app, it makes use of information such as purchase history and location to get as personal as possible.
The introduction of the rewards system saw Starbucks’ revenue soaring to $2.56 billion, while the app has generated around 6 million sales per month (around 22% of all U.S. sales). Takeaway: The more data you get from your consumers, the more tailored your marketing can be.
Amazon’s recommendation algorithm consistently makes headlines for its strategic approach to personalized marketing.
Continually being updated to create more tailored experiences, the tool suggests products not only to fit the individual, but different aspects of their personality.
Cleverly encouraging impulse buying by highlighting key tastes and products to match, it’s a tactic that pays off.
The company reported a 29% sales increase to $12.83 billion during its second fiscal quarter, up from $9.9 billion during the same time the previous year.
Takeaway: Personalized marketing isn’t just a tactic for building brand trust. When done right, it presents endless upsell opportunities for improved sales.
How to Make Personalized Marketing Work In 2020
Consumers now demand more tailored and personalized brand experiences than ever – something that poses a huge challenge to brands heading into 2020
New technology is making personalized marketing more achievable, but it doesn’t remove the need for marketers to take a hands-on approach. Here’s how.
Get access to the right data and make it work for you.
Use granular consumer data, based on behaviors, attitudes and more, to get to know your consumers and their actions. Bring all your data together to create a single customer view, enabling you to deliver a consistently personalized experience, regardless of touchpoint.
Profile your target consumers.
Use consumer data to build out real-life personas of your target audience, and personalize your communications for each group.
Offer the experience they want.
Once you know your consumers intimately, you can offer dynamic content to personalize the customer experience based on their interests, attitudes and behaviors.
4. Be authentic.
By matching your target audience’s brand experiences to your data, you can show you care about what they want. This not only boosts loyalty, but puts a human – or authentic – face to the brand.