Personalization is a regular part of our everyday life. Amazon, Spotify, Netflix and Co address their users individually and have already optimized personalization. It is impressive how well some companies know their customers.
There is so much competition these days that a unique selling point is important. The minimum in the area of personalization is a personal addressing of the customers. But it should not stop there, get to know your customers and adapt your marketing activities to the needs and interests of your customers individually.
Customer Feedback
Personalized marketing pays off. According to McKinsey, German customers value personalized marketing. 46% of respondents say they often or sometimes actively request personalized messages. However, it is important to distinguish between SPAM messages and relevant content. Customers are happy about content tailored to their needs.
According to Lars Fiedler of Periscope By McKinsey companies must rely on advanced analytics and scalable and sustainable solutions to better understand consumers, choose the right content, marketing channels and timing in order to succeed with personalization and to reap the desired benefits.
Big Data
Basically, it all starts with Big Data. To know your customers well, a large amount of data is required. Collect all data on your customers' online search and purchasing behaviour in addition to classic data such as gender, name, etc. Is customer A, for example, a bargain hunter or more interested in the latest trends?
For example, a cluster analysis can provide you with important insights into the purchasing behaviour of your customers. By quantitative descriptions of target groups, you can create customer clusters.
Segmentation / Data Mining
The basis for successful personalization is segmentation. You can use data mining to examine the collected data for patterns, trends, and correlations.
The aim is to divide your target group into specific customer segments and to create descriptive customer profiles which you can then use for personalised marketing activities.
Possible customer characteristics:
- Age
- Gender
- Location
- New/existing customer
- Shopping cart value
- Click behaviour
- Return quote
- Visited Pages
- etc.
Playing the personalization game
You have identified various target groups and finally it is a matter of providing these target groups with the content relevant to them. Check simple aspects such as the personal addressing, the language of communication, etc. It would be suboptimal if you are communicating with your German customers in Italian. Remember, it's about accuracy instead of reach. But of course it shouldn't be too personal, because otherwise your customers feel that their privacy is violated.
Bottom line
Spread individualized and interesting content and your customers will thank you with their loyalty. You can increase conversion, retain customers and differentiate yourself from your competitors. Targeted campaigns can also reduce your budget by saving time and resources.
Market your products and services in a targeted and efficient manner.
P.S. Tools
There are some tools that can help you with personalization. Below are some examples:
Onsite-Personalization
- Adobe Target
- Econda
- Odoscope
Email marketing
- Hubspot
- Xqueue
- Marketo
Retargeting
- Criteo
Automation/Connectivity
- Epsilon
