Marketing has evolved considerably with the passage of time. Traditional Marketing, which primarily revolved around broadcast messaging, has now changed drastically to the relationship era of today where marketers are making great efforts in building strong, and lasting relationships with their customers.
Customers of the current generation are not merely looking for products or services to satisfy their requirements but are instead looking to associate with a brand that consistently offers them 1:1 personalized customer experiences.
Every customer has unique needs, tastes, preferences, and attitudes. This requires specialized treatment from the brand they are associated with and hence, have to be targeted specifically and with a lot of care. This is why personalization at scale has become a game-changing weapon in the arsenal of every modern marketer.
Cast your eyes at these stats that indicate the growing significance of personalization in marketing:
- 81% of customers want brands to get to know them and understand when to engage with them
- 77% of customers have chosen, recommended, or paid more for a brand that provides a personalized customer experience
- 79% of B2C brands that exceeded revenue goals have a documented personalization strategy
- Smart personalization engines that understand customer behaviour will enable digital businesses to increase their profits by 15%
Unique Customer Affinities Demand a Personalized Marketing Approach
Unique customer behavior and their desire for personalized product or content recommendations, or 1:1 customer experiences have seen brands across various industries ramp up their marketing efforts to engage with their customers:
- 91% of customers are more likely to shop with brands that provide relevant offers and recommendations
- 80% of customers are more likely to purchase a product or avail a service from a brand that offers them personalized experiences
- 90% of customers find personalized experiences appealing
- 72% of customers only engage with marketing messages that are customized and contextualized to their specific interests and desires
These stats show that the expectations of customers from the brands have skyrocketed as they expect their whole online viewing or purchase experience to be tailor-made to suit their needs and expectations.
While some brands and a lot of marketers have understood this phenomenon, a lot of work still remains to be done. Since a piece-meal, scatter-gun personalization strategy is likely to leave customers underwhelmed, and unsatisfied:
- 36% of customers believe that brands should offer more personalized marketing
- 70% of millennials are frustrated with brands sending them irrelevant marketing emails and prefer personalized emails over bulk email sent to a huge batch
Customers Are Increasingly Open About Sharing Data If…
…it allows brands to track their behavioral patterns to serve the most relevant product or content recommendations:
- 90% of customers are willing to share their behavioral data to avail a more seamless brand experience
- 70% of millennials are willing to allow retailers to track their browsing and shopping behaviors if it will lead to a better shopping experience
Email Personalization for the Win
Marketers can implement their personalization strategy across various digital touchpoints . And, personalizing the email marketing strategy can work wonders.
Email personalization begins with Subject Line Optimization, with high-sentiment keywords being used to target the customers along with a relevant CTA to create urgency and capture the email opener’s attention.
An attractive subject line followed by personalized content within the email can lead to higher open rates and CTRs. This can directly result in higher conversions, bringing customers back to your website or mobile app:
- Creating effective customer segments for personalized email campaigns is the most effective personalization tactic for 51% of marketers
- Personalized emails deliver 6X higher transaction rates than non-personalized emails
- 82% of marketers have reported an increase in open rates through email personalization
- Brands using email personalization generates 17% more revenue through their email campaign than the average marketer
Real-time Website Personalization is Important too
Web personalization involves providing a seamless customer experience with tailor-made product recommendations, offers, text, or images – at the right time to the customer. All of this needs to be based on their historical and live behavior and which stage they are in the customer journey:
- 57% of customers are okay with providing personal information on the website if it can be beneficial to them in receiving a personalized experience
- Marketers who are personalizing the customers’ web experiences have observed a 19% uplift in sales
- Personalized homepage promotions influenced 85% of consumers to buy while personalized shopping cart recommendations influenced 92% online shoppers into purchasing
Marketers using website personalization can effectively drive customers into making purchases. Customers love personalized experiences that drive them towards discovering what they’re looking for faster.
Don’t Forget About Content Personalization
Effective personalization is also dependent on content personalization, a strategy that enables marketers to come up with laser-focused, relevant content based on audience interests and motivations:
- Individual customers are 40% more willing to buy from a brand that tailors its content to suit customers’ needs
- A generic marketing campaign with a lack of content relevancy generates 83% lower response rates than a personalized marketing campaign
- 87% of customers felt that personally relevant branded content positively influences how they feel about the brand
- 63% of consumers said they’d have a positive association with a brand if it provided content that was more relatable, valuable, and personalized
These numbers tell a stark and telling story. They underscore how important it is for brands to come up with an effective personalization strategy across multiple digital touch points.
Personalization improves customer satisfaction, leading to customer retention, which gives brands an opportunity to upsell and cross-sell with effective recommendations. The benefits of delivering better personalization are endless for brands, from building long-term relationships to driving sales and revenues:
- Personalization can reduce acquisition costs by as much as 50%, lift revenues by 5-15%, and increase marketing spend efficiency by 10-30%
- Brand loyalty amongst millennials increases by 28% on average if they receive personalized customer experiences
1:1 Personalization: Every Online B2C Brand’s Need of the Hour
As evidenced by all the stats above, personalization can no longer be treated merely as a buzz-word or a luxury for marketers. It’s a massive chunk of the foundation of modern marketing that drives new customers and ensures that existing customers keep returning.
And, at Smartech, we understand the value and significance of crafting these memorable personalized customer experiences at scale.
To understand how we can help your brand develop and deploy a winning personalization strategy, powered by AI – to keep your customers hooked – get in touch with us today!