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The Powerful Potential of Personalization in Digital Marketing

Date published: September 01, 2017
Last updated: September 1, 2017

Personalization in an analogue world existed when the guy at the video store knew your name. As we move into an increasingly connected and switched-on digital age, personalization is a powerful tool where a company knows what you want to buy before you’ve even thought about it. While basic personalization is relatively easy to achieve - an email with a first name will just about do the trick, great personalization - where you show up at the right time, in the right place, to the right person and say the right thing - is a little tougher to do.

But it’s worth it.

To understand personalization better, you will have to delve a bit deeper into the subject.

Personalization in digital marketing is a way of ensuring that the unique needs and preferences of your consumers are appropriately addressed. It is also about presenting the right product to the right consumers and, importantly, at the right time. This will help you create a positive impression in their minds and also help in building the credibility of your brand. Personalization gives you a better chance of having more a meaningful interaction with your audience and may ease the task and process of conversion.

It is a fact that ignorance of the needs of the consumers and the refusal to address the problem can cause businesses dearly. If your consumers feel neglected and mistreated, they can quickly change brands and make your competitors happy.

Today’s consumers are smart enough to demand personalization in digital marketing. They are well-informed of the marketing moves of companies and are aware that they can get personalized products on-demand today. Many customers are also willing to pay for that unique experience. It is also seen that they willing share their personal data if it can help them receive a personalised experience and recommendations.

When you use the data you have at your disposal to create a rich and meaningful experience for your users, you’ll provide an interaction where you get someone to where they want to be, and you’ll do it faster and easier. Every digital marketing agency worth its salt is seeking new ways to understand how best to create a personalised experience, and it’s an exciting development to watch unfold.

Personalization: explained

When we personalize something, we are helping an audience to have a richer experience with content or information that they have shown a preference for, while also selecting what kind of content they might interact with in the future. At the heart of all marketing management lies the desire to present the best possible information in the most attractive way, at the right time.

The Internet has transformed the way in which contemporary businesses create relationships with consumers. Instead of collecting customer information though costly surveys, it’s possible to use analytic data and personal data to sculpt a user experience to ensure it’s tailored to a group or individual. The underlying assumption behind personalization in marketing is that the overall message will be better received, and in most cases this is correct.

A seamless experience

With consumers and users owning a variety of digital devices and using them to interact with the world in a range of ways, it was initially a challenge for companies and agencies to understand who they were speaking to - and to execute the personalization strategy correctly. And yet, with an ever-increasing focus on the power of personalization, more often than not, we’re seeing companies who are making real impacts with their consumers. With Amazon already doing a stellar job of personalized shopping (and launching in Australia in 2018), we can expect to see other online retailers following their lead of personalization as a sales tool.

Why personalization is power

When an experience is personalized, the user instantly feels a connection with the message. There’s an element of feeling understood. Consider the way in which Netflix personalizes our viewing, for example. We get a list of suggestions which are selected via algorithms - based on past viewing habits - to suit what we might like to watch next. The result as a user is that we feel understood and catered to a company, which results in a better overall user experience. Then of course, there’s the times when it takes half an hour to choose a show… but we can’t blame our indecision on Netflix.

When good personalization is done right, there’s a sense of feeling like we’ve taken a shortcut - like we didn’t have to go through the rigmarole of browsing and flipping through pages and screens - and we’ve been given exactly what we want. Sure, companies don’t always get it right, but as technology advances and we exchange more of our data with companies, the personalised experience will continue to develop.

The fact is, personalization has the potential to deliver five to eight times the ROI on marketing spend, and can lift sales by 10% or more. When it comes to personalization for behavioural change, the impact can be huge. Leveraging personalization for your message can be a vital part of your strategy - especially when used in conjunction with a greater mass media campaign.

How to personalise effectively

Effective personalization relies on three core things: data discovery, automated decision making, and content distribution. The first step in personalization is data discovery to source the information that will provide a meaningful insight about customers. Then, by using customer data platforms, it’s possible to define the probability of customer engagement when presented with certain content or stimulus. Two-way communication is possible here, with information being used to signpost future messages and offers for customers. The final step is the distribution of personalised content. Specific ads depending on engagement with content and visits to certain websites will be rolled out to hopefully warm users and prospects. You have the power to offer personalised messages, experiences, services, and products. Depending on your company and customers, this can vary - but you must remember to offer something of genuine value and not to be creepy, like Target.

Digital marketing offers a long list of exciting ways of delivering a personalised experience. Brands must make sure they keep their eyes and ears open for every opportunity, small or big, to deliver the special experience to their valued customers.

There are a number of ways of using the various aspects of digital marketing to deliver a personalised message. Within every channel associated with digital marketing such as social media marketing, influencer marketing, content marketing, SEO and SEM, and others, there exist personalization opportunities.

Google Adwords

Google Adwords offers a great way of adding more power to your digital marketing strategy. Of course, some level of expertise is needed and also a fair budget as the cost of running a campaign can climb up with the competitiveness of your keyword targeted.  By using this strategy efficiently, companies can earn huge revenue and drive ROI.

Facebook Ads

Facebook ads can be a great way of ensuring that you get the attention of the right audience. You can post personalised messages to a targeted audience and also reach out to new audiences to test new products and services.

Emails

Email offers the perfect platform to send out personalized messages to a large number or group of people in a cost-effective manner. Such email addresses are identified and categorized based on user-behavior and actions performed on the website. The chances of success are high with such offers as the email message is something they will identify with. Emails can be the best way of achieving the highest level of personalization in any digital marketing campaign.

Rewards and Incentives

Companies often announce rewards program to engage their audience and send out a message that they are of high value to the organization. Many organizations offer discount codes and deals on dates that are unique to a customer such as a birthday or anniversary. It is an excellent way to make consumers feel truly valued and special.

These steps can be used to personalise digital marketing and engage customers on a personal level. It can be a win-win situation for both the parties involved.

Personalization is an effective weapon for encouraging an action. It can also be used to create a feeling that they belong to a group. By using personalization in their digital marketing campaigns as a strategy, companies can expand their reach and connect with more people.Understand the psychology, understand your market, and make the move.

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