Updated: Wednesday, May 3rd 2023, 10:56:51 am
Today, personalised marketing is the benchmark for marketers. Why is that? Well, it’s because the new generation of customers demands personalisation from every brand they engage with and personalised marketing is helping businesses to meet the high expectations of their audience. It has become a primary driver for marketing as well as business success. If your business is not engaging in personalised marketing then you are losing out on revenue and loyalty of your customers.
The concept of personalisation is helping marketers to improve performance and deliver a more “human experience” to their customers. Advancements in technology, data, and analytics are the key elements that are powering the personalisation strategies of companies today.
The central focus of companies, big and small, to personalise different aspects of their business might make you wonder- Why are personalised experiences so important nowadays?
If I put it simply, personalisation gives businesses an edge over their competitors. Customers have a plethora of options to choose from, which means they no longer settle for average products or bad customer service. If your customers are unhappy with your service, they will move on and choose your competitors. If your products are not living up to their expectations, they will not make a repeat purchase from you and instead buy from your competitors. It goes to show that customers are pickier than they were a few decades ago. What your customers are looking for is an unforgettable experience. If a brand can provide exceptional customer experience, it’s more likely that customers would be loyal to that brand. In fact, 86% of customers are willing to pay more for a great customer experience. They are willing to open their wallets and spend an additional 13% to 18% on luxury products, only for their great customer experience. The more personalised your services are, the more enjoyable the customer experience.
This journey of personalisation extends to marketing as well. Personalised marketing campaigns are beneficial for companies as they are efficient at targeting different segments and have a higher ROI. Collecting, analysing, and effectively utilising consumer data can help a business to curate campaigns, content, and experiences that resonate with the target audience.
Personalised marketing focuses on targeting marketing initiatives to an individual customer or prospect with the help of data analysis and automation technology. Personalised marketing has become a way for brands to tailor customised experiences as per customer needs and preference. It helps brands to foster long-term relationships with customers and reduce churn rates.
The reason personalised marketing works so well is that personalisation triggers strong emotions in customers and makes them feel as though their interests are being taken care of by the brands they support. So basically it makes them feel valued.
You must be wondering as to how marketers personalise marketing strategies on such a granular level. Well, the answer is data! What most companies do is set up data collection centers at every customer touchpoints across multiple channels to capture, track, and analyse demographics, psychographics, and buying behavior.
There are 4 steps to the formulation a personalised marketing strategy:
Some great examples of personalised marketing are- Amazon, Netflix, and Target. Amazon is a data giant that collects user data from various sources. It tracks past and current purchases as well as monitor browsing history of its users. Through this Amazon is able to provide personalised recommendations that match the users’ needs. The content is very specific and it’s tailored to each user. Netflix applies the same methodology. This is why every time you open your account, you see a list of shows that are similar to what you watch regularly.
There is a famous incident at Target, where a father was furious at Target employees for sending his daughter home with baby product coupons. The girl was indeed pregnant, unknownst to her family. But how did Target know about it? Well, it’s because they have been tracking the girl’s buying behaviour, and thanks to predictive analysis, they were able to make the right recommendation. Every customer at Target is provided with a customer ID when they first shop at the store. The ID tracks the customer’s purchasing behaviour and on the basis of that, the store is able to make personalised offers. This is a great example of the power of data analytics.
Firstly, personalisation is something that every customer expects from you. They want you to give them content and recommendations that are relevant to them. Customers gravitate towards brands that are able to identify and satisfy their personal needs and can treat them as an individual at every step of the customer journey. An Accenture survey highlights this consumerism trend perfectly…
“91% of consumers are more likely to shop with brands who recognize, remember, and provide them with relevant offers and recommendations.”Accenture Survey, 2018
Secondly, personalised marketing is great for your business. Personalised marketing helps you to build relationships with your customers. Building relationships helps to foster brand loyalty. As you already know, brand loyalty is crucial for customer retention and revenue. Repeat customers are important for a company’s bottom line.
It all starts with the data. You need to gather as much data as possible to create customer personas which will help your marketing team to develop relevant content and targeted ads.
As a company, you can utilise primary as well as second and third party data. But, you need to make sure that data collected from secondary and tertiary sources are validated. You can purchase second -party and third-party data from an organization that already has these data collected or in a private marketplace.
There are multiple ways through which your company can collect customer/prospect data:
Let me break-down some effective ways to build long-term relationships with your customers that will help your business to improve its marketing strategy:
Personalised marketing has immense benefits for every organization. Use your customer data and analytics smartly to reap the benefits. Also, remember not to get too creepy with your personalised recommendations as that could potentially turn away your customers. Listen closely to your customers and use that knowledge to offer them great customer experience with appropriate and helpful recommendations.