Are You Ready To Incorporate Personalised Marketing Into Your Strategy?
The days of generic marketing are over. Now that marketers have increasingly powerful user data analytic tools at their disposal, crafting the right message for the right person at the right moment is easier than ever.
In recent years, personalised marketing has been quickly and steadily gaining ground to the point that users no longer simply prefer it, they expect it. Research has found that 74% of customers feel frustrated when website content is not personalised. This is especially relevant to millennials, 70% of whom dislike brands that spam them with irrelevant emails.
If you’re yet to dive into personalised marketing then you could be missing a huge opportunity; a report has found that 95% of the companies surveyed saw a 3x ROI a year after implementing a personalised strategy. In this article we’ll unpack the basics of personalised marketing and discuss relevant statistics and examples of brands that have taken the lead.
The Art of Personalisation
Put simply, “personalised marketing” is using data from users to create messages, suggestions and offers based on their unique behaviour and preferences. Up until a few years ago, brands thought that inserting a customer’s name on a generic email was enough to get the job done. Now, making a user feel seen or heard requires much more effort.
To truly engage customers, marketers need to make use of data collection, analysis and automation technology. This will make it possible to communicate with each user in an individualised way that encourages them to stick to a brand for the long term. Being bombarded by emails and thousands of ads on TV and social media each day has led to audiences becoming increasingly “blind” to generic advertising, so catering to their specific interests is now the way to stay relevant.
Research has shown that 91% of customers are more likely to shop from brands that provide customised offers or suggestions, whilst 80% are more likely to purchase a product from a brand that offers personalised experiences.
However, one concern about personalised marketing is that users are becoming increasingly cautious about online data sharing. While this may be an issue for certain industries, marketing doesn’t seem to be one of them; 90% of customers are willing to share their behavioural data if doing so will result in a more individualised brand experience.
Success stories to learn from
From fashion to confectionery and e-commerce, numerous brands are now harvesting the benefits of a more personalised marketing strategy. A less-recent but very successful example is Cadbury, who in 2017 used Idomoo’s Personalised Video as a Service (PVaaS) to promote its Glow gift chocolate in India, a market where gift-giving is not as widespread.
The campaign consisted of users creating a personalised video that included photos and names obtained from their Facebook accounts. Using a QR code, Glow gift recipients would watch the video created by the sender. Among recipients, a CTR of 65% was achieved, whilst the conversion rate for viewers who completed a subscription form was 33%.
Another example is Louis Vuitton’s ‘My LV’ line. The fashion giant, which is estimated to be worth $39.9 billion in 2021, is now allowing buyers to customise products by adding stamps, patches or even their initials while ordering online. The result is a design that enables the user to feel more connected to their favourite designer.
Amazon is also leveraging personalised marketing. Considering the huge amount of user data generated each day on the site, this shouldn’t come as a surprise. Because of the powerful algorithm, the platform relies on, each user has a unique homepage where tailored suggestions based on search and purchase history are shown.
Moreover, Amazon also shows recommendations as “frequently bought together” and “customers who bought this item also bought.” While perhaps not seeming overly significant at first glance, 44% of users actually go on to buy from these recommendations.
These are the trends driving personalised marketing
A recent Evergage survey found that 78% of marketers consider email as the most personalised channel. The first step to crafting truly relevant emails is to conduct thorough keyword research, which helps to create a hook capable of giving a sense of urgency to the user and encouraging them to click.
This will likely lead to higher conversions as personalised emails have been found to deliver 6x higher transaction rates than generic ones. And brands sending personalised emails see 17% higher revenue throughout the duration of their campaigns. More interestingly, personalised CTAs convert 202% better than default CTAs, according to HubSpot.
Targeted discounts are another form of personalised marketing that can lead to some very positive results. Coupons and exclusive offers as means of increasing customer loyalty and purchase frequency are nothing new but, when these do not cater to a shopper’s personal interests or preferences, they can come across as spammy.
To avoid this, brands can design special discounts based on data from the same user they aim to engage. Hitting the sweet spot will likely translate into a higher ROI; over 60% of consumers have been found to become more loyal to a brand when getting a discount within an hour of the initial interaction.
The future is personalised
When putting your personalised strategy into action, it is important to always remain open minded and never let any insight go unnoticed. Given the complexity of human interaction, this form of marketing requires extensive testing and constant improvement.
Do you need assistance to venture into personalised marketing? Get in touch with us! With more than 30 years of experience in integrated marketing, we can become the perfect partner for your brand!