By: Aron Swain
People naturally won't receive a message, except they feel it was designed specifically for them. This statement is true in personal conversations and also in digital marketing. It is also why businesses are very mindful of making sure that all their digital marketing moves are optimized so that customers can feel a personal connection from the brand.
While personalization has been a thing for several years, it is no more as simplistic as it used to be. A decade ago, personalization techniques may have involved just addressing customers by their first name and then ranting on about what your business can do for them.
Today, personalizing your digital marketing approach is meant to engage the customer at a much deeper level than what you can achieve with just having their basic data.
The focus is now entirely on the customer. A study showed that 90% of customers in the US find personalized marketing appealing. That's a statistic no company or marketer should gloss over.
Marketing is no longer just about customer-generated business reviews on Yelp, or business recommendations on professional writing service review platforms like Best Writers Online. In other words, it's more than what customers have to say about businesses or what businesses have to say about other companies.
Personalized marketing seeks to build a unique and deeply meaningful relationship with individual customers to increase brand loyalty, conversion, and sales. To achieve this level of communication and understanding between brand and consumer, the company has to leverage the gift of data analysis.
Armed with all the pertinent personal data of its ideal customer, it can use various digital technology to design individualized messages, products and service offerings, and more. This form of digital marketing can be implemented across multiple digital marketing channels and scenarios: emails, social media ads, and pages, e-commerce stores/carts, returning visitors, and much more.
No digital marketer worth his salt doubts the non-negotiable impact of personalized marketing — and you shouldn't either. So if you're still sitting on the fence about this, we've rounded up a few compelling benefits that show how a personalized digital marketing strategy can improve your business's sales and success.
It boosts conversion
When two people who know each other are having a conversation, it is usually very distinct from a discussion between two strangers. In the first instance, both parties already know so much about each other and have no problem exchanging stories, ideas, memories, and more.
The same way it is easier to get a conversation going with someone you already know, the conversion is much easier to achieve with a frequent site visitor or a returning buyer. This statement is true because you already have personal details about them, like their shipping address, purchase details, and more. You are already one step closer to conversion when marketing to these people.
Knowing their buying behavior and preferences means that you can offer them personalized deals and streamline the purchase experience in a way that they would naturally be open to. This tactic is valid since they are already comfortable with your brand and do not want to waste any time surfing the net for the perfect deal.
It deepens relationships and grows trust
The more time a customer spends with your company, the more you learn about their browsing habits, purchasing power, frequency, and preferences, among other things. This data is invaluable as it is the only thing that can help you effectively personalize your marketing and deepen the intimacy of your relationship with each customer.
Because your marketing feels like it is intimately adapted for each customer, this directly builds your customers' loyalty and trust. Usually, this can also mean increased brand visibility via word of mouth and referral sales. When a customer loves your personalized service and feels in touch at an intimate level, you own them and will enjoy an increased customer lifetime value as a result.
Maintains a high customer retention rate
Personalization positively impacts each customer's experience with all your company's touchpoints — email, social media, online store, blog, and more. When your customers are always satisfied with the value and service you deliver, it reduces the number of complaint calls, increases your positive review count, bolsters your brand loyalty, and also your customer retention rate.
Traditionally, in our competitive business clime, every potential customer is fair game to any digital marketer or company. As a result of this mindset, your competitors will always be trying to steal your customers away from you. However, because your customers are delighted and satisfied with your brand, they will be a lot less likely to consider jumping ship to a competitor.
It helps serves as an extra filter during lead nurturing
There is no such thing as having enough or too many customers; it's a myth in today's business thinking. So even companies with loyal customers always want more customers. Even when it comes to reaching out to entirely new people, personalized can still be of help here.
Smart marketers use the data they already have about their highest value customers to reach out to a lookalike audience. They use it to target only people with the highest likelihood of responding favorably to your marketing efforts. Still, there will always be a level of uncertainty when seeking out new customers.
Owing to this uncertainty, marketers will typically use the insights from their existing customer data to design content for pre-qualifying potential customers at the top of the funnel. This method will also work while sending them further down the line based on their responses and decisions.
It delivers a better budget/revenue ratio
A full-suite digital marketing strategy can cost a ton of money, even for small and medium businesses. According to WebFx, SMBs spend an average of $30,000 to $145,000 annually on their digital marketing. That's too much money for any company to be throwing at marketing. This assertion is especially true if they are not recording a commensurate ROI.
For companies with personalized marketing in place, they would consequently not have to spend as much on marketing, given that their customers are already keen on their offering. Every business should want to attain this height with its customers.
At this point, provided you're doing everything right, you can quickly identify the aspects of your marketing that customers are responding the most to. You can then optimize those aspects and scrap the ones with little to no conversion.
With this sort of approach, you would have achieved a leaner but more directed marketing strategy, a leaner marketing budget by consequence, and an uptick in sales and revenue.
As customer data continues to be collected by businesses across the world, we will continue to see new ways to implement personalized marketing for increased sales revenue and customer satisfaction.
What's more? The rise in people using interconnected devices is another avenue for businesses to roll out device-specific personalized marketing for their customers based on their browsing behavior on each of those devices.
In all, personalized marketing is not going anywhere; it's only going to get bigger. Let the benefits on this list inspire you to launch your personalized marketing, or you may regret it sooner rather than later.