The Importance of Personalized Marketing
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Personalized marketing, also known as one-to-one marketing, leverages data collection, analysis and automation technology for companies to deliver individualized content to recipients.
Personalized marketing has several benefits, for both businesses and consumers. It improves customer experience by maintaining consistency and cohesion on all channels, leading to stronger brand loyalty and, ultimately, increased revenue.
Today, personalization is more important than ever, as consumers have access to content from several channels. Sometimes, users feel overloaded with information and won’t bother to give it full attention. However, when people see their own name, this personalized content can capture their interest. Personalized content is effective because it speaks directly to your consumer.
If you haven’t implemented personalized marketing in your overall digital marketing strategy, now is the time to learn, invest and do so. Below, the Bold x Collective team shares some benefits, as well as tricks and tips on how you can start your personalized marketing campaign.
Understanding the Benefits of Personalized Marketing
Firstly, the most important thing is understanding the key benefits of personalized marketing, and how it can help your business in the long run.
1. improving customer experience
Customers are always filling out online forms, downloading whitepapers or participating in surveys. Brands incentivize this through discounts and other special offerings. Customers are always more likely to engage with brands if they get something in return. When they provide basic information during these processes, such as their name, city or perhaps their birthday, in exchange for a discount code or special offer, that’s personal customer data going into your arsenal. The benefit is that you can now use this information to offer a more personalized experience when they return.
2. increasing brand loyalty
When your consumer provides personal information and data, they expect to be treated as a unique individual. Businesses that dedicate the time and resources to implement successful personalized marketing strategies will achieve brand loyalty and consumer satisfaction.
3. Driving revenue
By identifying and responding to customers, companies can increase ROI. With the right automation technology, marketers can identify which channels certain customers engage with most, then this automatically follows up across other channels. This also helps create consistency on all channels.
How to Create a Successful Personalized Marketing Strategy
Launching a personalized marketing strategy is not easy. There is a lot of research to be done, and factors to consider. You must compare different personalization platforms to find the right one. Once you find the right one, you'll need to implement some things into the back end of your website, to capture data, which includes the number of clicks, how much time is spent on the website on certain pages, abandoned shopping carts, purchase history and so much more.
After getting this data, you'd have to analyze it, to figure out what the best type of content is, and the best way to share it with your consumers. A/B testing would help you validate the performance. Once you've analyzed everything, after collecting the necessary data, it will help you create your personalized marketing strategy. Below we explain some of the key factors to help create your personalized marketing strategy.
1. Targeted Emails
Marketers are using personalization for their email campaigns. With the use of personalization, marketers can create and send individualized emails to a specific group, with certain categories, whether it be gender-specific, birthday-specific and more. To better understand your audience, it is important to create relevant email content. One way to do this is by collecting customer information through the use of sign-up forms. When someone signs up for your newsletter, you require them to provide specific information, such as their name, birth date or interests.
For example, if you own a restaurant and want to reward your customers on their birthdays, you can do so through the use of email marketing by giving them birthday wishes along with a special discount code on their next purchase. Another example: if you own a clothing company, you could send a targeted email based on certain interests or the age of your consumer, such as new products or current fashion trends.
2. Custom Video Messages
Fun fact: marketers who use video grow revenue 49% faster than those who don’t. As a brand, creating videos with custom messaging is a very effective approach to keep your customers engaged, if done right. Creating a fun, engaging video will help people better understand your brand and the personality behind it. Some examples of personalized video content can be holiday wishes, for Christmas, New Years Day or even Halloween, from you and your team. Another fun one can be a social media video, perhaps on Instagram TV or Facebook TV, that talks about a specific topic in relation to your business; maybe an informative "how to" video or a Q and A about your brand.
This type of personalization is memorable for your audience. When creating a plan for video marketing, be sure to activate the right tools and resources to reach your audience.
3. Product Recommendations
This tactic is popular because it tends to perform well. This type of campaign uses a collection of data to determine the type of product or service a user is most likely to be interested in and inform recommendations accordingly.
Netflix does a great job of making recommendations for its users. After watching a movie or show, they ask customers to rate it. Having received the rating, they will take that data to help recommend more content to viewers. This is personalized marketing at work. Another example can be an online clothing retailer. Let’s say your customer picked a specific type of outfit they liked, or added it to their “wishlist” or “favourites;” the collected data will then start to recommend similar types of clothing that your viewer might like, which is personalized marketing.
This is a great tactic that many users enjoy because it helps the customer filter through what they like and don't like, without going through the trouble of searching through every single product. It is a great user experience, creating more potential for repeat customers.
4. Social Media Marketing
Did you know that there are over 3.5 billion social media users worldwide? As a company, interacting with your audience on social media networks can help increase engagement, customer satisfaction and brand loyalty. Social media has become a huge tool for businesses in 2020, as it helps keep relationships with customers and keep your brand on minds of potential customers. By sending personalized messages on social media, marketers are able to collect customer data which helps with the process of driving conversions.
5. FOMO!
FOMO, also known as Fear of missing out, is a great tactic for conversions, and is quickly growing with popularity. As humans, we do not like to miss out, infact we get uneasy when we know were missing out on something. As a marketer, you can use FOMO through different techniques. Firstly, you can show how many other people are currently looking at the same product, or have bought it recently. This is through FOMO-specific personalized messaging, to convince a customer to make the purchase before leaving. These messages are usually brief and very straight to the point, such as “12 other people from the same city as you are looking at this product right now” or “only 3 left in stock!”
Ready to Start Your Personalized Marketing Campaign?
As mentioned earlier, personalized marketing requires many steps, such as running tests, observing analytics and more, to help create a strong digital marketing strategy.
With the use of data collection, analysis and automation technology, companies that deliver individualized content to recipients will benefit in the long run, through excellent customer experience, brand loyalty, consistency on platforms, and increasing revenue.
To get started, contact our team at our Toronto digital agency to learn more about how we can help your business reach its full potential.