Marketing personalization is the primary key by which you can future-proof your business by evaluating and addressing the everchanging customers’ needs and aspirations. A recent study (the next in the personalization report 2021) depicts that those Companies that take an all-inclusive approach and outshine competitors in demonstrating intimacy with customers generate rapid revenue and business growth. Advertisers must address retailers’ ever-increasing needs and demands by delivering these needs and wants are met. In addition to building brand loyalty, this paves the way for elevated and effective customer interaction. With today’s fast-paced lifestyle, price pressures from discounters, disruption from online providers, and more transparency from shoppers, the retail environment is rapidly changing. Strategies once used by conventional retailers, such as strategic pricing and promotions, have now been easily replicated by competitors and are gradually losing effectiveness. Through effective marketing personalization, retailers can provide unique experiences tailored to individual customers.
Customer expectation through personalized experiences
Online pioneers have transformed the marketing landscape to the point where customers have grown to expect and demand personalization from retailers and online companies. Customers consider personalization as a part of their hygiene; if any marketer messes up with this, they will permanently depart from those marketers. Omni-channel advertising has paved the way for a highly personalized customer experience because it successfully integrates multiple channels customers use to interact. Successful marketers seamlessly integrate their most valuable zero and first-party data, providing their clients with exceptional personalized experiences. Competitors have a hard time replicating this broad-based strategy. Successful execution of this strategy will create brand visibility and enable marketers to achieve sustainable competitive advantages. This will drive brand loyalty and turnover for the business, significantly increasing profit margins for the marketers.
A recent study (SmarterHQ) indicates that more than 72% of customers like to engage with more personalized and tailor-made messages that meet their needs and preferences. As customers’ online interaction with various brands is thriving, brands are pushing themselves hard for better brand visibility, from social media to pay-per-click advertisements and email communications. Customers, by their rapid and frequent interactions with various digital touchpoints, the customer experience is gradually shifting from brand awareness to purchase and to loyalty. Marketing personalization, which used to be confined to targeted offers, now encompasses customers’ interaction with offline and online channels, underscoring the significance of effective omni-channel advertising. Customers interact with multiple personalized touchpoints, thus enabling them to appropriate their valuable time and money that suits their preferences. A proper marketing personalization process involves marketers involving customers in the dialogue so they can create individualized personalization to create custom audiences. As a result of efficient personalization, these custom audiences receive products, services, and offerings relevant to their needs and preferences.
Advertisers will craft tailor-made campaigns based on rich zero and first-party data in this data-driven world. Advertisers must ensure that the communication they send to customers is relevant to the products or services they aspire to and does not bombard them with irrelevant messages. Advertisers must craft a well-executed marketing strategy backed by valuable data insights. To reach a custom audience, it is important to segment large customer groups based on similar tastes and preferences, which should be advertisers’ topmost priority. Creating identical customer profiles and personas helps advertisers define custom audiences and determine the best channels to reach them.
How personalization can make the difference?
Mckinsey’s recent study indicates that personalization at scale increases the chances of marketers clinching a deal by 1 to 2% by interacting with a large segment of their audience. Further, this helps reduce the marketing and sales cost by 10 to 20%. An excellent customer experience delivers a tremendous positive impact on customer satisfaction rate, improves sales conversion rates, and bolsters customer engagement. Advertisers harnessed and attained positive customer experiences have bestowed their shareholders three times higher returns than their competitors. To make the marketing personalization program fruitful, advertisers have to lay their eyes on their most loyal customers, giving them a return on investment three times higher than the mass promotional campaigns. By using their rich zero and first-party data accumulated from their loyal customer base, advertisers enhance their response rates and boost customer loyalty.
Challenges persisting for integration of marketing personalization
Mckinsey’s research shows that around 20% of advertisers have fully integrated market personalization strategies, and the balance, 80%, are still exploring this tremendous opportunity. Most advertisers are delving into defining personalization strategies in their core marketing activities and have begun experimentation initiatives.
The prime challenges advertisers face while incorporating personalization strategies are
- It is very difficult for the majority of retailers to collect, integrate and collate the rich zero and first-party data.
- Maintaining an in-house and robust data analysis team is challenging for advertisers as it involves huge investment outlays.
- Every employee should use the enriched zero and first-party data across the organization. For the majority of marketers, the siloed data and organizational hierarchies obstruct the efficient and swift sharing of customer data. Breaking the siloed data and disseminating this rich data across the organization will facilitate making wise and informed decisions.
- Most marketers do not have the proper tools for effectively integrating personalization at scale to its core.
- Marketers who have implemented omnichannel advertising successfully still pose the challenge of organizing offers and administering across all touchpoints.
With the right data and an efficacious data analytics team, marketers can quickly identify customers’ value triggers to facilitate efficient marketing personalization.
Marketers must use a cutting-edge audience manager platform to fetch data quickly and deliver timely insights to make wise and informed decisions. With our robust audience manager platform, we gather and analyze rich zero and first-party data to activate customer segments in real-time to deliver a complete customer experience.