Introduction to Personalized Marketing
Personalized marketing, also known as one-to-one marketing, can be defined differently. To understand fully, a few definitions of it are as follows. While personalized marketing may be known as using data analytics to make marketing and the overall experience unique to each customer, it is also much more than just inserting the customer name into templated marketing emails.
Personalized marketing is a marketing strategy by which an organization leverages data analysis, automation, and digital technology to deliver individualized content and product offerings to current or prospective customers. Personalized marketing aims to engage target customers by connecting with each individual. It’s like talking to the prospect personally, which is a tedious task if a company is dealing with many customers within the business.
Though complicated and requires a lot of effort, the benefits of personalized marketing for a business are tremendous. This article offers you insights about personalized marketing, the benefits of personalization in marketing, and some challenges and examples for you to ponder. We aim to help you realize why choosing personalized marketing brings enormous benefits to your business.
Challenges of Personalized Marketing
Like any other marketing strategy, personalized marketing also has challenges along the way. Let’s take a look at the most common issues marketers face on personalization.
- Creating an Individual Customer Experience. This may be the most complex challenge to face when doing personalized marketing. With tons of data available about your customers, finding common ground among the pool of information is difficult. Research shows that marketers are having trouble linking data gathered into individual profiles of each customer.
- Using the Right Technology. The mobile era is a challenging era for marketers. Finding a perfect fit is one arduous task as the changes are so extravagant and happen as frequently as possible. One key element to make personalization a success is to find a tool that makes data gathering, automation, and personalization regulated and easy. Unfortunately, stumbling upon a tool with an intelligent algorithm and smart automation for personalization is not easy.
- Discovering Smart Segmentation. Smart segmentation on different channels is not just done for show. It boosts overall performance. However, many marketers still struggle to find a fundamental segmentation strategy. Discovering the proper segmentation process is key to acing the game on personalization. Many brands are having a problem with this step; thus, they end up using average and straightforward segmentations in the process.
- Time and Resources. Even if the proper tools are sourced for personalization, dedicating time and other needed resources to succeed in personalized marketing is seemingly hard for business owners and their teams. Without this crucial factor poured in, it will be a great challenge to achieve success in the process.
The Benefits of Personalized Marketing
There are numerous benefits of personalized marketing for both businesses and the customer. Below are some for you to discover and, in turn, help you arrive at strategies you need for your business in the future.
- Drive Revenue. If properly executed, identifying the right channel, and using resources to implement a strategy successfully, a company can guarantee an increase in its revenue. This is one of the ultimate end goals of a personalized marketing strategy for most entrepreneurs. Though not the sole purpose of the approach, increasing ROI and driving sales on sales is one ultimate manifestation of a successfully executed technique.
- Better Customer Experience. Customers trust a company when they always get something in return. For example, if you conduct surveys, make them fill out forms, ask their preferences over discounts, they wait in return for something to be offered for their benefit. This increases and improves the overall customer experience. Personalized marketing is an efficient way to give your customers a better experience at every purchase.
- Create Consistency Across Channels. We all know that customers constantly interact with your brand through different channels in this age of modern technology. Such channels include emails, social media, mobile apps, websites, etc. The interaction may happen in one single day. Personalization needs to be consistent in all your channels, and fortunately, it does. It produces consistent content for your brand and establishes one strong message to your customers.
- Produces Brand Loyalty. As discussed earlier, customers who provide personal information expect to be treated as unique as their profile information provided. Once a business dedicates time and resources to implement personalized marketing, it successfully executes brand loyalty in return. Aside from that, authentic customer satisfaction is also gained.
- Lead Nurturing and Conversion. While many efforts could be made when lead nurturing for your business, personalized marketing is one of the most tried and tested means to successful lead nurturing and results in conversion in the end. Personalization is undoubtedly an effective way to take care of your target customers and convert them to actual buyers.
Examples of Personalized Marketing
Nowadays, every consumer expects a unique treatment from every brand they support. The average consumer fully anticipates personalization in every campaign your business runs. So here’s a look at a few examples of personalized marketing campaigns that can lead to successful nurturing, conversion, and revenue.
- Custom Video Messages. An average online user loses interest in a brief period. Leveraging content for your business into a personalized video message is a very effective way to keep them engaged. Although this type of content is very memorable and effective for your customers, it is also as complex and time-consuming for a marketer to create. So, be sure that you have the right tools and resources needed to make personalized campaigns, such as a customized video message.
- Personalized Email Newsletter. Marketers can create a personalized email newsletter to be sent out to a specific targeted audience within their business. Try targeting a particular group with particular needs and answer to that need. This is one effective strategy to lead to conversion.
- Product Recommendations. Based on the latest product patronized by the customer, offering or recommending a product of the same category is one effective means to make a personalization campaign work. Proper data collection and segmentation strategies are essential to make this trick work. A tailor-fit recommendation to your customers is a sure score.
- Social Media Connection. Interacting with your customers organically is also one sure way to do personalized marketing effectively. People nowadays are almost always online, and they do a considerable percentage of their lives online. So if you are present and are always available to respond, react and be present at every interaction they initiate, it can improve your connection with your target customers and later on drive conversions.
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