It is a strategy that focuses on Personalized Marketing initiatives and sending messages to a current or potential customer. This is done with the help of data psychoanalysis and digital technology.
Personalized marketing is one-to-one marketing, and as the name suggests, it completely personalizes each consumer’s needs.
Contrary to personalized marketing, mass marketing appeals to a broad audience or demographic. Personalized marketing is essentially the majority focused form of under attack marketing.
How does it Work
For personalized marketing to be successful, a business must obtain as much personal information as possible from a current or potential customer.
Fortunately, today data on individual consumers abound. This wealth of information is analyze and harnessed to make personalize and targeted offers, recommendations and messages designed to attract the person based on their behavior, interests and other data previously collected.
Digital is perhaps the best medium for personalized marketing and is popular with advertisers. For example, information can be tracked through cookies or interactive feedback tools on a website, providing a wealth of data that allows advertisers to tailor the messages displayed to individual viewers and users across channels ranging from websites to YouTube and even television.
There are four steps necessary to create a personalized marketing strategy: Identity, Differentiate, Interact, and Personalize.
Identify: Occurs during data collection. Markers such as the sex, age, and location are collected.
Differentiate: Occurs at the analysis time and allows companies to segment users into the specific niches they target.
Interact: Corresponds to the stage in which the collected data use to contact a potential or current customer by communicating with them in the medium and with the methods they are most likely to respond.
Personalize: When the one-to-one relationship has been established, a company can already close the deal.
Examples of Personalized Marketing
Most people have made purchases on Amazon. While they may not have realized that they were experiencing personalized marketing, they probably did notice that the platform was recommending products that matched their interests and previous purchase history.
Amazon collects a large amount of data about its users. Tracking each user’s purchase and browsing history to make product recommendations targeted to each individual’s interests and needs.
Amazon also suggests products similar to the specific item the user is reviewing. This content is unique to everyone, and while it’s helpful to shoppers, it’s a boon to Amazon and its vendors, increasing sales of similar products through intelligent, personalized recommendations.
Another typical example of personalize marketing is target messages that may email to you by your favorite stores, most likely address to the user by name. This simple personalization strategy allows businesses to connect with consumers personally, creating a connection that increases sales.
Depending on your previous commitment, these messages may send at a specific time of day. However, it is worth noting that personalizing a recipient’s name consider one of the most basic and archaic personalization methods. Given advances in technology that allow marketers to go much further to focus on forward-looking tactics. Individual.
Benefits of Personalized Marketing
The great advantage of personalized marketing is that it allows a company to effectively target current and potential customers, increasing the chances of participation and conversions since it appeals to the individual’s tastes, needs, interests, and other preferences. This targeted advertising gets more conversions and is ultimately an incredibly lucrative sales mechanism. Experian said personalized marketing messages received 29% higher open rates and 41% more clicks than those without personalization. Businesses that use customized marketing typically increase their total sales by about 19%.
Personalized advertising not only leads to increased sales but also better-off customers. When personalized and engaging advertising is present, customers feel more connected to a company, directly translating into paid invoices.
Research shows that irrelevant email marketing is frustrating for roughly three-quarters of all customers. Additionally, these same customers are less likely to engage with the brand, and these experiences directly influence their purchasing decisions.
Challenges of Personalized Marketing
Depending on the nature and size, customization can be cost-prohibitive for some organizations. For example, if a grocery store were to target each consumer and give each one a brochure customized to their needs and wants, they would need some way to track past purchase history and predict future purchases, not to mention the cost to design and print—hundreds of thousands of unique brochures.
In this case, it takes intelligence to use a mass-market brochure. However, a grocery store loyalty program would be easy to set up with this tracking system. It could effectively target individual shoppers with coupons and specials at a lower cost. If a customer buys bananas every week
Good Practices of Personalized Marketing
To ensure the best results with your personalized marketing efforts, you’ll want to collect data from as many sources as possible. For example social networks are an excellent source of audience data. Both on a mass and individual level, as is direct email marketing.
You will also need to ensure that any personal data collect stored securely and cannot access by unauthorized persons to protect the sensitive personal information of your prospects and customers.
You are automating data collection and personalizing technology wherever possible reduces overall costs and time investment in data collection and analysis. For example freeing up sales and marketing staff to convert leads is a more valuable use of your time than working with a cold funnel.
Continually review data to see what’s working and what’s not. Allocate your resources accordingly. make the most of personalized marketing efforts and get a higher return on your investments.