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Here’s Why Personalization Conquers Every Other Marketing Tactic

  • Date Published
  • Categories Blog
  • Reading Time 10-Minute Read

Personalization technology has changed dramatically over the years with marketing automation and AI enabling marketers to get specific with their campaigns.

Do you remember the gold name chains that blew up in the 90s and early 2000s? Everyone wanted one or had one, and if you had one, you wore it every single day. Apart from the overall allure of gold necklaces, the main reason those necklaces were so seductive was because they were personalized. Your name was sparkly and gold plated, hanging on your neck all day. Those necklaces were not only a symbol of status and identity but also and most importantly, statements of individuality. This is my name. This is who I am.

While gold name necklaces have largely left the mainstream fashion scene, the concept of personalization remains ever in style, especially in the marketing world. The use of personalization in marketing has become a favorite among digital marketers because of the results this strategy yields. In D2C e-commerce, 40% of executives reported they saw personalization efforts increase basket sizes, maximize sales, and positively impact profit. An additional 37% of executives agreed personalization increased sales and customer lifetime value through content and product recommendations as well. Users want to be recognized as individuals with unique wants and needs, and when they’re heard independently, the results speak for themselves.

The Benefits of Personalized Marketing

There are hundreds of ways to answer the question, “what is personalization in digital marketing?” but in short, personalized marketing is a marketing strategy that helps brands deliver individualized messaging and product recommendations to consumers by leveraging their user data. With the help of data analytics and marketing automation, companies can create unique content that speaks to users at different stages of the sales funnel. If you’re still be thinking, why is personalization important, it’s because personalized marketing ensures that your brand is sending the right message at precisely the right time so prospective shoppers turn into paying customers. With personalized content marketing AI tools, there are plenty of benefits that businesses can reap; these are the main four you should take note of:

  1. Increases customer engagement. Across the board, engagement rates for marketers who use personalization are higher than those who do not. 79% of consumers reported they are more likely to engage with an offer if it is reflective of their previous interactions with the brand. In a study done by One Spot, this led to an increase in average order value of 5% and conversion rates by 6%, and marketers who used personalization in email marketing generated 17% more revenue.
  2. Delivers an enhanced user experience. Personalization is certainly beneficial for brands who use this strategy, but it’s also something consumers want to see from companies. In a study conducted by Deloitte, an average of 36% of consumers expressed greater interest in purchasing personalized products or services. What’s more, 48% stated they were willing to wait longer for those personalized products or services. Personalization is not only something users want, but also something they’re willing to pay and wait for.
  3. Builds customer loyalty. With marketing automation technology, personalized marketing helps brands deliver unique and relevant product offerings. According to users, 44% say they will likely become a repeat customer after a personalized shopping experience with a brand. To make this deal even sweeter for businesses, 40% of those consumers also reported making a purchase more expensive than they initially anticipated.
  4. Boosts revenue. All the benefits above are great, but we all know it’s about the numbers. According to a study by Monetate, 93% of businesses with an advanced personalization strategy experienced revenue growth last year. Furthermore, 86% of companies who reported getting a high ROI revealed that personalization made up 21% or more of their marketing budget.  Marketing personalization is a proven strategy that brings in the cash.

Still need some further proof? Below, we’ll go over some brilliant examples of personalized marketing campaigns.

Marketing Personalization Examples

There are dozens of great marketing personalization campaign examples to draw inspiration from. Hundreds of household brands you know and love like Coca-Cola, Spotify, and Netflix have executed amazing campaigns that have set their brand apart in the eyes of the public. And while these corporate behemoths may have hundreds of thousands of dollars to allocate to their marketing budget, there are still lessons you can take away and apply to your marketing strategy. If you’re still wondering what brand personalization is, these three examples will show you how you can appeal to your audience by including them in your brand’s narrative:

  1. Coca-Cola and Share a Coke. In 2014, Coke began its Share a Coke campaign by releasing bottles that had 250 of the most popular names on them in an effort to make their brand more appealing to younger generations. The tactic proved so successful that the company saw sales volume surge for the first time since 2000. The Share a Coke campaign has taken on many different faces since its initial release and since has added more names that cover 77% of the general U.S. population for ages 13-34. (They have also begun to include last names into this campaign as well!) This marketing personalization example has become a staple reference for marketing personalization success and currently has over 661,000 mentions on Instagram. If anyone ever asks you why personalization is important in marketing, refer them to this campaign.
  2. Spotify and Wrapped. As stated above, personalization isn’t just a great tactic for businesses, it enhances user experiences as well. Spotify’s Wrapped campaign is the perfect example of this because they used personalized marketing statistics to create unique experiences users can share. In 2018, the music streaming platform released a feature that took individual consumer data and turned it into an interactive microsite. In conjunction with a personalized email, the individualized microsites revealed each user’s unique listening habits and took them through a year in musical streaming in review. It showed you the top artist you listened to, top songs of the year, and then prompted you to share your personal music journey on social media. Their attention to detail has paid off in spades and landed Spotify “Media Brand of the Year” at Cannes Lions 2018.
  3. Netflix and Recommendations. Netflix’s recommendation algorithm is constantly being updated and enhanced to provide users with a better binging experience. On top of their tech, they also hire a team to categorize TV shows and movies into highly specified genres. Their algorithm not only focuses on filtering shows but also filters the images of the next set of recommended titles. Based on the previous shows you’ve watched, Netflix will change the title image of the shows in your queue to reflect what they think will capture your attention the most. The platform’s ability to provide individualized experiences to users has directly resulted in Netflix’s success. Last year, the streaming giant had a net income of $1.2 billion and is expected to see its subscriber count grow worldwide.

10 Personalization Marketing Tips and Trends to Follow

Now that you can why personalization is important in marketing, it’s time to put this strategy to use. With the following tips and tricks, you can show your audience that you care about them as individuals and you understand what their unique needs are. For the savvy marketer wondering, “how do I personalize my marketing?” here are 10 personalized marketing tips and trends to follow for the coming year:

  1. Leverage user data. Leveraging user data like their interaction history and recent purchases will help you offer products and services that are relevant to them.
  2. Create buyer personas. Creating buyer personas will help you segment your audience and determine the appropriate response to provide based on each consumer’s persona.
  3. Segment your audience. Segmenting your audience will help you categorize your users so your team can effectively target them with the right messaging and offers.
  4. Create multiple content versions. Creating multiple versions of content will ensure that you’re sending the right message to the right user.
  5. Diversify imagery. Take a page out of Netflix’s playbook and diversify your imagery to suit the needs of your messaging and the user’s preferences.
  6. Select different landing pages. Selecting different landing pages will ensure that your users are getting the information they need to travel further down the sales funnel.
  7. Increase personalization in email marketing. Use marketing automation to include the first names of users in the subject line of your emails and within the body of the text to increase engagement and click-through rates.
  8. Consider personalizing your product. Take a page out of Coca-Cola’s playbook and personalize your products so users can share them on social media.
  9. Experiment. Don’t be afraid to experiment with different personalization tactics until your team finds the recipe that works best for your unique audience members.
  10. Use marketing automation to follow-up – Keep your users loyal by using marketing automation to re-target shoppers with new and exciting products or deals your team has to offer.

The Future of Personalized Marketing

Personalization technology has changed dramatically over the years with marketing automation and AI enabling marketers to get specific with their campaigns. But even with all these advancements in technology, the next biggest issue in personalized marketing is hyper-personalization. In 2018, Eric Edge spoke at Social Media Week about the importance of hyper-personalization and the reasoning behind its importance. He said that the data collected on consumers could inform not just a single campaign, but the entire marketing funnel itself. This way brands become a part of a consumer’s entire experience rather than just for a single purchase. He goes on to say marketers can’t settle for basic demographics on users anymore, it’s about a much more complex set of trends and interests. When you really begin to understand your users and their purchasing patterns, marketing personalization will help you deliver experiences that are hyper-relevant, indicative, and predictive of consumers’ tastes.

The Re-Cap

You may not gold plate your audience’s names onto necklaces or print their names onto bottles when you use marketing personalization, but this strategy conquers every other marketing tactic because it forces you to effectively include your consumers in your brand’s messaging and story. With marketing personalization, you’re letting your consumers know that you see them as individuals and are willing to tailor their journey to their unique desires and preferences. You’re showing your users that you see them, you hear them, and you ultimately prioritize their needs and care. Marketing personalization is a triple threat that will yield significant results for your business by boosting engagement, building customer loyalty, and increasing revenue. With all these benefits, why wouldn’t you give it a try?