The concept of personalization falls into multiple categories: customer service, sales and marketing. It’s a popular trend that enhances the customer experience allowing a brand to get closer to the customer and, as a result of these personalized experiences customers feel valued and appreciated. Here are a few stats from Chief Marketer about personalization:
89% of brands cite challenges with personalization
6x increase in transactions when brands invest in personalization
40% increase in email click-through rate with personalization
Now that we know the value of personalization in today’s marketing mix. Let’s discuss the basics of Why, What, Where and How to do it for your marketing plan.
Why personalize? It will increase your business’s marketing effectiveness, transactions (read sales $$$) and, in today’s marketing, consumers expect it.
What do you personalize? Research suggests that financial incentives such as tailored discounts and offers have the greatest impact on most types of businesses.
Where do you personalize? Digital marketing such as websites, mobile apps and email marketing are the best places to personalize offers and experiences rather than physical locations, likely due to greater access to consumer-level data.
How do you start personalizing? Begin to gather data on your customers/users from all touchpoints. This can be from your site, email lists or ads. Gather as much data as possible while maintaining a smooth customer journey.
Look to industries that are already doing it well, such as retail and travel, to determine best practices for your personalization strategy.
Here are 4 Recommendations to begin your personalization program:
- Change up the order in which you think about technology. Think first about the customer experience you want, then what technology is needed to create that experience.
- Use the power of data consumers share with you smartly. Create valuable experiences with them in return.
- Create a sense of security and trust with your consumers by providing transparency around data use practices.
- Take advantage of all data sources available to you. Data fuels personalization and consumers value personalization.