- What Is Personalization in Marketing
- Trends That Prove the Power of Personalization
- Why Is Personalization So Powerful
- What Are the Benefits of a Personalized Marketing Strategy
In the fast-paced world of digital marketing, brands are constantly looking for ways to innovate their marketing techniques and offer fresh, engaging content. It is important to remember that every customer has individual needs, wants, and preferences that your brand should be able to deliver. This is where personalization marketing comes in.
What Is Personalization in Marketing
In the marketing field, personalization, or personalized marketing, refers to how brands tailor-fit content for their customers and show them content they relate to and would genuinely want to see.
They do this by collecting and analyzing data and taking advantage of the latest tools and technologies like automation.
Personalized marketing has several goals:
- Communicate with potential customers on a personal level
- Engage deeply with customers
- Use data-driven marketing strategies to uplift brands
- Set brands apart from their competitors by connecting them more deeply with their customers
- Nurture leads and secure conversions through tailor-fit content
A personalized marketing strategy is all about meeting customers where they are and giving them content that they truly resonate with. Personalization goes far beyond merely inserting the customers’ names into newsletters and emails. It involves customizing a marketing strategy based on the gathered data on a target audience and providing them with content that is valuable to them.
Trends That Prove the Power of Personalization
More and more brands and businesses are adopting a personalized marketing strategy to engage with their respective audiences and communities.
Since its emergence, personalization has become a strong indicator of how successful a brand will be in reaching out to consumers.
Here are some of the trends that best highlight just how powerful personalization is.
- 71% of consumers dislike having impersonal shopping experiences.
- 74% of consumers dislike website content that is irrelevant to what they are looking for.
- 91% of consumers prefer to shop with brands that offer personalized shopping suggestions.
- 90% of consumers in the United States would rather have a personalized digital experience.
- 63% of customers would no longer buy from a brand that has a poor personalization strategy
- Over 70% of consumers would only respond to a personalized marketing strategy
- Email recipients are 29% more likely to open an email that has been personalized
- Almost 90% of marketers are using personalization tactics to promote a brand or a business.
- Research has found that using advanced personalization tactics and strategies can bring a return 20x bigger than what was initially invested.
- Personalized emails receive over 6x more engagement than impersonal emails.
With these statistics, the power of personalization in marketing is fairly evident. Adopting a personalized marketing strategy can help brands engage with their consumers more deeply, helping them grow, scale, and achieve their goals in the long run.
Why Is Personalization So Powerful
Presently, personalization has become more effective than ever in connecting brands to their customers. The digital space is saturated with content from all sorts of brands and organizations that it becomes difficult for any one entity to truly stand out. However, the more a customer resonates with a brand, the more likely they are to purchase from it.
Personalization allows businesses to strengthen their relationships with existing customers. It also allows them to reach consumers who have a genuine interest in the products and services they offer, which makes them more relevant to that consumer.
When a consumer is uninterested in a product or service, likely, any content built on it will simply be ignored. Personalized content has the power to speak directly to the consumer and make them understand the benefits or advantages of patronizing a certain brand or organization.
The effects of personalization can be traced back to how the human brain is wired. A study published in Brain Research found that whenever someone would hear their name, the brain produces a unique reaction that triggers the middle and superior temporal.
These are the two areas heavily associated with the formation of long-term memories. When an individual receives personalized content, they are likely to remember it for a much longer time than when they receive impersonal content.
Another study done by the University of Texas found that personalization gives consumers control. By showing consumers personalized or tailored content, you give them the sense that they have control over the things that they are seeing, and they do not feel overwhelmed by unnecessary or irrelevant content.
Additionally, personalized marketing tactics humanize a brand. It makes consumers feel that brands care about them and genuinely want to form a connection with them. This builds customer loyalty and trust, which helps them make a lasting connection with a brand and continually patronize their products and services.
What Are the Benefits of a Personalized Marketing Strategy
Customers want to feel like the brands they patronize care about them. As mentioned, personalization helps achieve this. Here are some of the other benefits of adopting a personalized marketing strategy.
Deeper understanding of your customers
To be able to launch a personalized marketing campaign or generate personalized content, brands first need to know what makes their target audience tick. This deep understanding of customers’ needs and wants is crucial to the success of a business.
By understanding their target customer, brands can provide better service and develop products that are more likely to stoke the customers’ interest. This can be done by analyzing customers’ purchasing behavior, studying their demographics, and developing a buyer persona.
Higher conversion rates
When it comes to reaching customers, timing is key. Showing the right consumer the right message at the right time is more likely to get them to convert. This enhances the overall shopping experience for that consumer, which is more likely to get them to convert and make a purchase.
Better customer retention
Customers are more likely to continually support brands and organizations that consistently meet their needs and provide them with value. To be able to do this, companies need to keep tabs on general market demands and their customers’ needs. If a brand can keep its customers happy through quality marketing tactics and product offerings, it will be able to secure its customers’ loyalty.
Boosted brand revenue
Sometimes, customers are more likely to purchase on a specific platform or channel than others. If a brand can gather this information, they can focus their marketing efforts on that channel to influence consumers to purchase.
Some factors to take note of are how frequently customers visit certain platforms and how long they stay on those platforms. For example, if a brand’s website experiences a lot of traffic, it would be wise to personalize the marketing strategy of that platform. This not only enhances the visitors’ experience of the page, but it also influences purchasing decisions, potentially increasing the revenue for the brand.
Increased social sharing
Happier customers are more likely to share their experiences on their social platforms and with their peers. Personalized marketing and personalized digital experiences that offer tailor-fit content significantly enhance the overall shopping experience, thus potentially increasing consumer happiness.