Businesses operating in a competitive market struggle to gain customer retention and win their loyalty for the long haul. After all, consumers are spoiled for choice, with several brands offering similar products at comparable prices. Marketing personalization can be a game-changer, enabling brands to target customers with ads and content matching their preferences and needs.
According to a 2022 survey, 62% of online buyers worldwide said that a brand would lose their loyalty by missing out on personalization. The number was a significant jump from 45% in 2021. HubSpot notes that 37% of brands rely on first-party data to personalize customer experiences. That’s not surprising, considering the benefits a personalized approach can offer.
However, before diving into personalized marketing, you need to understand that it requires a well-planned approach. Designing a result-oriented marketing personalization is a thoughtful process that integrates data, creativity, and technology. There are no shortcuts if you want effective and sustainable results.
In this article, we will share a few tips to create a marketing personalization strategy that works.
Prioritize Audience Segmentation and Profiling
Personalization starts with knowing your customers and digging deep into criteria such as demographics, psychographics, behavior, and preferences. Think a step ahead with market segmentation and profiling. It involves splitting consumers into groups rather than treating them all as a whole. You can create comprehensive customer profiles by using first-party data directly from your audience and third-party data from external sources.
Further, draw an identity graph to attribute different activities to the same customer, regardless of the device they use to view ads and interact with your content. With a proper view of audience profiles, your personalization strategy becomes foolproof. The best part is that you can save time, effort, and resources.
Intent IQ highlights data from Forrester’s research to cite the significance of identity resolution. According to this survey, advertisers end up wasting $.21 of every advertising dollar due to poor data quality. Identity resolution can resolve this concern and give your marketing personalization strategy a head start.
Focus on Data Security
Research shows that targeted ad messages can be a catalyst for a brand’s image. In 2022, 43% of global online shoppers were willing to share their personal data to ensure better-tailored marketing. However, as a business collecting this data at various touchpoints, you have a huge responsibility to ensure its privacy.
Data security should be on top of your mind while creating a marketing personalization strategy. Implement robust access controls, encryption protocols, and data anonymization techniques to safeguard sensitive information. Also, ensure compliance with privacy regulations when drawing the digital identity graph of each customer.
Regularly auditing and updating security measures is another vital step to mitigate potential vulnerabilities. Going the extra mile with the security of customer data does more than prevent breaches. It upholds consumer trust and brand integrity in the long run.
Win with Omni-Channel Engagement
With customers using multiple channels to buy products and interact with brands, omnichannel is the way to go. Twilio’s 2022 State of Personalization report reveals that only 35% of companies considered themselves successful with omnichannel personalization. While the number was up 13% from 2021, there is still room for more. It means an omnichannel engagement strategy can give you an edge.
An omnichannel marketing approach can ramp up your marketing personalization strategy with cohesive and consistent experiences across multiple touchpoints. Use identity resolution data to customize the user experience on your website, mobile app, social media channels, email campaigns, and offline channels.
Adopt Continuous Optimization and Testing
A set-and-forget approach can affect the efficacy of your marketing personalization strategy. You may have worked hard to create customer segments and craft compelling content for each of them. However, you cannot expect your strategy to work forever because customer expectations, market trends, and competitor tactics evolve.
Commit to continuous optimization and testing to ensure optimal outcomes for your marketing personalization plan. Monitor its performance in real time and iterate according to the insights gleaned from your data analysis. Implementing A/B testing and multivariate testing is a good way to experiment with different personalization approaches and determine which tactics yield the best results.
Also, continuously refine your audience segments, product recommendations, content recommendations, and messaging to enhance relevance. Being agile enables you to quickly adapt to changes in market dynamics and consumer behavior to maintain a competitive edge.
In conclusion, a result-focused marketing personalization campaign cannot be developed overnight. You need to work hard to make it work and deliver the results you expect. While digging deep into customer data, stick to the commitment to upholding its privacy and security. Most importantly, avoid getting complacent with the strategy and continuously improve it for consistent results.
