As we know, digital marketing has grown at an incredible rate and it’s showing no signs of slowing down any time soon with the regular introduction of many concepts. For a while now, marketers have been targeting their consumers using personalised tactics, but what does that include?
Personalised marketing – What is it?
While it may seem like a simple concept of a consumer receiving an email or another communication with their name in the text, there’s actually a lot more to it. When marketers use personalisation, they are using data on shopping habits, interests and buying behaviour to target you at the perfect time with the perfect products.
It’s important to recognise that this means every communication is personal to each consumer and in order for it to be a success, measuring data analytics is a necessity. Many consumers enjoy the use of personalised marketing and prefer it to have been completed by the company themselves instead of a third party organisation.
How does personalised marketing work?
This type of marketing works by companies gathering data based on online shopping habits. This could be through retargeting ads on social media or through an email containing some form of discount for the product that’s waiting in your basket on that particular site. This is a form of artificial intelligence (AI) that works by predicting things based on information such as location.
Many believe that personalisation is the future due to the added value that it can provide. If AI can predict what you’re looking to buy, essentially, it can suggest products that meet your criteria and potentially save you time.
What are the advantages of marketing personalisation?
A more personal message
Like we mentioned previously, many consumers actually enjoy the personalised element to marketing. For some, apps sending them a push notification containing their name is enough to draw them into visiting the app and potentially making a purchase too. Of course, there’s more to it than that and there’s a chance that the company has also sent you the notification at a time when you’d usually open the app for a browse.
More targeted advertising
Consumers are exposed to many advertisements every day and therefore it can be very easy to miss a lot of them. Through carefully analysing data, companies can determine the habits of each consumer and target them with more relevant advertisements. Reports have found that personalised discounts can help to increase customer loyalty. Many consumers also claim that they will now only interact with companies who offer a personalised experience.
Better return on investment (ROI)
Personalised marketing is effective due to the value it can create. For companies using generic advertisements to reach all of their audience, most of the consumers will not interact therefore the strategy ends up costing more than it’s worth. In comparison, companies with personalised marketing strategies are targeting those who they know are interested and therefore there’s a much higher chance that they will end up making a purchase from the company. This means that a personalised marketing strategy is generally a more cost effective way of reaching customers.
What are the disadvantages of marketing personalisation?
Importance of tracking
Tracking data is the key to a successful personalisation strategy, therefore you must ensure that you have an expert in the field on hand to take care of it. Some companies also use customer opinions to drive their marketing strategy, however it is harder to gain information this way. Whichever way you choose, it has to be completed to a high standard for your personalisation strategy to work.
Plan well
A lot of planning and research goes into creating a personalised marketing strategy. When planning, there’s a lot to think about such as the demographic of the customer, how much they are likely to spend on a product and their interests. Once you have considered elements such as these, you can begin creating a persona of the consumer and considering how to target them successfully.
Personalised marketing is popular among many consumers, but that’s not to say that everyone is happy with it. When using data it’s important to be transparent and follow regulations. You can contact us for all of your digital marketing needs.