What Is Personalized Marketing?
Modern business has become almost impersonal. If before the seller personally knew all the regular customers of his store, was aware of their lives, problems, tastes and needs, now companies do not always even see their buyer. A sale through the Internet has reduced personal contact to a minimum, and after all the attentive personalized approach allows increasing sales up to 20%.
Personalized marketing is messages (for example, Custom Video Messages) and actions that are adapted to the behavior and interests of a particular user and are formed depending on what he viewed and purchased in his past visits. His behavior is a key aspect according to which the company will build a personal offer. This is the way of communication between the brand and the client, which is based on establishing communication with the latter for further sales. The format is good in that it takes into account the needs, interests, and goals of each specific client. In simple terms, it is possible to say that creating a personalized marketing strategy is a way to increase conversion and sales, as well as overall trust and loyalty, which as a result gives an opportunity to get a real feedback from the client.
Personalized marketing is built on three things:
- Data collection is information about what customers prefer. Their actions rather than sociological or demographic data will tell about it best.
- Segmentation of the client can take place according to different indicators and behavior. The company should think about what will be undertaken to this or that segment and what effect it will give.
- Targeted bids should show a benefit. The goal is to make an offer, which the specific segment of buyers will not want to abandon.
Benefits of Personalized Marketing
Сustomers receive from the company personalized content, focused on meeting their needs and having much in common with their interests, which in turn increases the level of conversion and the likelihood that, if necessary, this client will apply to a particular company again.
In the future, the number of calls may increase, but here is the question of simple arithmetic. The more products and services a company sells to existing customers, the more revenue is generated, as it avoids the cost of attracting new customers.
While recognizing the need and essence of the interest of the potential client, it is possible to confidently transfer it to sales and skilfully promote the funnel until the closing of the transaction. It is also worth adding that the leads, which the company “grew” thanks to targeted content, for example with the help of Social Media Marketing or Fear of Missing Out bring 20% more potential sales.
Examples of Personalized Marketing Campaigns
Dropbox. A person who has been noticed in logins from various devices gets a friendly email, which says that if you install Dropbox on all used devices, you can save files to them at the same time, start working on one device, and continue on another device, and also have a permanent access to files from anywhere.
Live Nation. This is an American site with information about concerts in your city or nearby localities. Periodically, subscribers receive letters with a selection of recommended activities. Records are arranged in chronological order, each illustrated by a poster or a photograph of the performer.
How Personalized Marketing Works
To make an offer that the client cannot refuse, the company needs to know who he is, what he does, what he dreams about, what he is afraid of, where he works, and where he would like to work, where he lives, etc. It is not possible to manually obtain an array of data about each client. Automation is the best way. Automation not only simplifies data collection and personalization of relations with the client. Knowing more about the client, the company optimizes the offer, increases the rate of perception of the offer/brand, accelerates the decision making process and the purchase. Companies increase sales by an average of 19% if they personalize the approach to customers.
So how to personalize marketing? Personalized marketing is not just about knowing a name. For personalization, it is not enough to know the age and location of the client. Without a large array of personal data, it is simply impossible to develop a personal approach to the client. Taking into account the demographic and behavioral data of the user, the company gets a clear answer about who is who in the target audience, what content will become most effective for each group of consumers, what needs the users have. This gives more reliable data for forecasting so that every new client already on the input receives a relevant offer.
5 Personalized Marketing Statistics
1. Custom letters are opened by users 14% more often, and the conversion from such letters increases by 10%.
2. 57% of users agree to provide personal information if this will improve the service and offer.
3. 77% of users will trust the business more if they learn how user data is used to improve the consumer experience.
4. 92% of users are concerned about the security of personal data online.
5. 71% of users are afraid that the company uses the provided data, not for its intended purpose (merges with other companies).
Thus, today, personalized marketing is a weighty and advantageous benefit. The company not only stands out from the competition but also gets invaluable knowledge about the client.