What is Personalized Marketing?
2019 is a great time to start using personalization in your business. Personalized marketing (also called “one-to-one” marketing) is a strategy where companies deliver individualized content to their customers, using data they already have collected on them, as opposed to giving the same content to every customer.
The primary goal of adding personalization to your marketing strategy is to offer your customers relevant and useful information, product suggestions and content so you can engage with them better and thus turn them into loyal customers.
Personalized Marketing in numbers
If you didn’t use personalisation in your business yet, 2019 is a great time to start! Why? Have a look at those stats:
- 88% of U.S. marketers reported seeing measurable improvements due to personalisation — with more than half reporting a lift more significant than 10%. (Evergage)
- 78% of U.S. Internet users said personally relevant content from brands increases their purchase intent. (Marketing Insider Group)
- Increasing personalisation in more channels can increase overall consumer spending up to 500%. (The E-Tailing Group)
- Personalisation reduces acquisition costs as much as 50%, lifts revenues by 5-15%, and increases the efficiency of marketing spend by 10-30%. (McKinsey & Company)
Personalization in practice
The most often seen way of personalisation is adding customer name to the email copy or sending a birthday email to them – but while it was working just fine some time ago, it is quickly losing power.
According to Pure360, 92% of customers won’t engage with a company that uses addressing them by name as the only form of personalization, and 93% are uninterested in birthday emails.
Customers now expect much more than just “Hi Andrew” emails – they expect that both the content and the product suggestions they get will be answering their needs.
To use personalization to its full potential, you first need to learn more about your customers – and with marketing automation tools at your disposal, it is easier than ever!
How about preparing a newsletter with information and content that perfectly matches the customer’s interests? Mailing customers that there’s a special offer for the shop in their city? Changing images in the emails depending on the customer? Personalizing product suggestions and offers based on the customer’s previous purchases?
All of those can be done if you have a personalization strategy in place.
For a more advanced form of personalization, you can use predictive personalization tools. Based on the data the tool has inside, the system (when armed with artificial intelligence) can learn what the customer preferences are and predict what the customer will need or want in the future which helps a lot in preparing tailored made offers for this customer.
Examples? The system will learn and remember which brand of coffee a customer is likely to choose or what clothes size he buys most often. It can also send an email to your customer before his software license or printer ink run out, together with a special offer for those products.
2019 is the Year of Personalization – a successful personalization strategy can be one of the most powerful assets in your business. Customers expect now that they will get content and messages tailored to them and they might be less likely to use your services if you don’t meet their expectations.