3 Reasons Your Brand Needs a Personalization Strategy
3 Reasons Your Brand Needs a Personalization Strategy
There’s little doubt that having a marketing personalization strategy can help turn prospects into customers and increase their engagement with your brand. In fact, companies who don’t communicate with customers in a personalized manner leave themselves vulnerable to brand switching. Here are three reasons your marketing strategy needs to include personalized customer experiences:
- 93% of companies report having more success in converting prospects into customers when they personalize their marketing.
- 73% of consumers expect specialized treatment for being a good customer.
- 52% of consumers and 65% of business buyers are likely to switch brands if a company doesn’t personalize communications.
Personalized marketing can be as simple as using a customer’s first name in an email. However, with the abundance of big data, advancements in automated technologies, artificial intelligence, and predictive marketing, the possibilities for highly targeted, individualized personalization strategies have expanded dramatically. Whether it’s a personalized website experience, individually relevant email messaging, or unique services via mobile app, customers are looking to be engaged in customized and meaningful ways.
Personalization is the marketing strategy of creating and delivering individualized content to highly-targeted consumers. Personalization programs are enabled and made scalable by collecting and analyzing omnichannel data with the assistance of automated technology, such as AI and machine learning.
Engaging Consumers as Segments of One
Consumers expect to receive messaging with a high level of personalization, thanks to personalization pioneers like Amazon and Netflix. However, to be truly effective, a personalization strategy needs to deliver a meaningful customer benefit based on their needs and desires, and the point they are at in the customer journey. That understanding of customer needs, particularly on an emotional level, will serve as inspiration for targeted communication messaging, customized products and services, and even individual pricing down to a segment of one. You can then pinpoint when and where in your customer’s experience those needs arise and deliver personalized messaging to demonstrate how your brand is ideally suited to meet them.
Personalization in Action
Here are examples of three brands using personalization strategies to deepen customer relationships. Each one developed a unique strategy designed to align with their particular business model and achieve brand objectives specific to their customer’s experiences.
Business Model: Digital-only bank, located in the UK, focusing primarily on the millennial target audience.
Brand Objectives: Drive satisfaction, frequency of multiple transaction types, and increased use across the portfolio of services via an online/mobile experience.
- Created a proprietary mobile app platform to provide relevant financial wellness content based on customer banking data.
- Generated over 1 million brand logo variations enabling customers to customize the logo on their app replacing the brand name with their own first name.
- Offered a 24/7 chat feature, with a human personal banker, offering on-demand access to financial guidance.
Business Model: Over-the-counter medication, sold through mass retail channels.
Brand Objectives: Increase brand awareness, consideration, and boost sales of their cold sore medication among young adults, effectively introducing them to the category.
- Created and delivered personalized marketing campaigns to resonate with their target customer segment (young consumers) by tapping into their self-image emotional needs.
- Communicated with consumers at key moments, during their interaction with self-image related online content (celebrity news, health & beauty tips, dating advice, etc.).
- Leveraged machine learning to target this key audience segment to trigger ad placement in conjunction with self-image related online search and interaction with video content.
- Created a robust series (over 100 pre-roll ads) of personalized ad executions to place in conjunction with thematically-relevant YouTube video content, such as celebrity news, cosmetic, and beauty tips.
Business Model: A national fitness chain, offering a full range of fitness services.
Brand Objectives: Enhance member experience by helping them achieve their personal fitness goal leading to increases in brand satisfaction, usage of additional services, retention, and likelihood to recommend.
- Gathered and analyzed customer data, including attendance frequency and use of gym services, along with outside behavioral research by leveraging AI technology.
- Created a proprietary app (24GO) offering individualized fitness advice and guidance.
- Generated unique, customized recommendations based on machine learning analysis of gym member’s activity.
- Delivered additional personalized content to gym members across multiple channels, including the company website, via personalized email messages, along with free personal trainer assessments upon request.
Start by Listening to Consumers
Clearly, executing a marketing personalization strategy holds tremendous promise for all types of organizations. In fact, according to a McKinsey & Company article, “Personalization will be the prime driver of marketing success within five years.” That’s why listening to your customers is the best place to start. Consider gathering feedback throughout your personalization development process. It can help guide you and your teams as you develop meaningful, relevant, individualized ways to communicate with your customers at the most important moments in their customer journey. Isn’t that something we’d all like to experience?
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