Why Marketing Personalization is the New Key to Brand Growth

How to Keep the “Person” in Your Marketing Personalization Program

The average American can be exposed to 4,000 to 10,000 ads every day, according to experts. As more channels and touchpoints emerge, brands are facing their greatest challenge yet in standing out from others, in capturing the attention of prospects, and in converting them into customers. While many advertisements may struggle to break through to the consumer, a well-placed ad calling attention to a restaurant deal at lunch time can catch the attention of a hungry consumer.

There are more options than ever in a marketer’s toolkit, yet they all revolve around the same objective: delivering the right message, to the right consumer, at the right time. Ten years ago, the ability to meet this objective differentiated the successful advertisers, as the investment was cost-prohibitive for many. These days, technology and data have made this strategy more accessible, and personalization is no longer a differentiator. It is now table stakes.

The risks and benefits of marketing personalization

Personalization is a customer-centric strategy that combines data with intelligence to create and deliver tailored experiences to drive engagement. From the devices we use, the websites we frequent, and the commercials we watch, personalization has established itself as part of the world we live in. Brands like Amazon, Netflix, and Spotify immerse us in hyper-personalized experiences, elevating expectations: customers expect useful messages, offers, and product recommendations that make them want to engage. The risk of neglecting a personalization strategy is clear:

1. Customers expect personalization – 80% of consumers are more likely to make a purchase when brands offer a personalized experience (Epsilon).
2. Avoid losing customers – 76% of customers report that it’s easier than ever to take their business elsewhere, and they will switch brands to find an experience that matches their expectations (Salesforce).
3. Reap the benefits for marketing ROI – successful personalization programs result in higher customer satisfaction ratings while also reducing marketing waste by around 10 to 20 percent (McKinsey).

The need for personalization has never been greater, as the ongoing pandemic is rapidly shifting consumer priorities and mindsets. The capacity to go beyond product recommendations, and to craft messaging that speaks to the unique needs of each consumer, is the degree of personalization that drives conversion, share of wallet, and share of heart.

Building a successful personalization strategy

So where do you begin? Every successful personalization strategy places people at the center, then leverages technology, analytics, and data to make smart decisions. Personalization isn’t an all-or-nothing endeavor, it’s a spectrum. The most rudimentary personalization in the past was based on demographics, but now with powerful data and platforms, brands can better meet the preferences of consumers who increasingly demand relevance.

Where does your brand fall on the personalization spectrum?

1. Crawl – Using contextual data, such as users’ geolocation, assumed gender, or time of website visit, to make smarter decisions about what experience to serve.
   • Example: An automotive website recognizes your location and points you to the nearest dealership in your area
2. Walk – Incorporating more advanced analysis of customers, such as personas or persona history, and more sophisticated means of serving targeted experiences, such as A/B testing programs.
   • Example: A sporting goods retailer sends targeted promotions to customers based on which category they’ve bought, and optimizes message and creative based on the resulting performance of different audience campaigns.
3. Run – Combining both first- and third-party data to get a 360-degree view of customers, develop more specific micro-segments, and reach audiences across online and offline channels.
   • Example: A clothing retailer uses a CDP (customer data platform) to consolidate data about purchase history and recent touchpoints. They deploy coordinated, targeted offers across paid and organic channels and fulfill online purchases in offline stores.
4. Fly – The most innovative programs leverage advanced analytics, machine learning, and automation to deliver truly 1-to-1 experiences, powering both customer engagement and business revenue.
   • Example: Amazon uses predictive and prescriptive algorithmic decisions to deliver real-time, personalized user experiences at scale.

No matter where you fall on the spectrum, it starts with putting the “person” in personalization – understanding the attitudes, motivations, and behaviors of your customers and devising more relevant experiences and messages that will further your engagement with them.

Today’s top insights teams are poised to help marketers uncover the needs of these customers, whether it be through conducting a segmentation or evaluating how creative resonates with distinct consumer groups to maximize return on ad spend.