Personalization is one of the most popular buzzwords in the marketing world right now. However, few people understand how to do it effectively. Naturally, there is a lot of confusion surrounding this concept.
What is Personalization in Digital Marketing?
Personalization is the process of knowing your current and prospective customers’ needs, preferences, and interests so that you can serve them exactly what they’re looking for when they’re looking for it.
Personalization in digital marketing refers to the ability to tailor messaging to individual customers. It provides personalized experiences based on a consumer’s previous actions, purchase history, demographics, and browsing behavior.
When done correctly, personalization can help you engage customers better through relevant communications, provide exceptional customer experiences, increase loyalty and retention, and increase sales.
Numerous points along the customer journey can be personalized. You can personalize a lot of things, including ad content, landing pages, emails, discount offers, sale alerts, and product or service recommendations.
Benefits of Personalization in Digital Marketing
Companies are gradually realizing the value of personalized marketing. 89% of e-commerce businesses have invested in personalization. Listed below are some of the advantages of personalized marketing.
- Increase repeat purchases: 44% of consumers will become repeat buyers after a personalized experience with a brand.
- Drive sales: personalization has resulted in a 20% increase in sales.
- Increase purchases: 80% of consumers are likely to buy from a company that provides personalized experiences. Personalization can boost revenue by up to 15%.
- Boost ROI: Advanced personalization provides a $20 return on investment for every $1 spent.
- Decrease customer acquisition expenses by up to 50%.
- Enhance customer loyalty since brands offer consumers exactly what they want.
According to Boston Consulting Group, in 2022, $800 billion in revenue has shifted to the 15% of companies that get personalization right. So, here are some excellent ideas for utilizing technology to achieve your personalization goals.
Smart content (also known as adaptive or dynamic content) refers to elements of an email, ad, landing page, or website that can be changed based on a user’s previous behavior or interest. It’s like creating content that is customized for each viewer individually.
The main reason people enjoy watching videos is because they are highly interactive. In fact, personalized videos may be the best form of interactive marketing because video messages are better retained. It’s no surprise, then, that 68% of people prefer watching videos over text, infographics, ebooks, and presentations when learning about a new product or service.
Chatbots are automated programs that can be found on apps like WeChat, WhatsApp, and Facebook Messenger, as well as on web pages, and allow your visitors to access useful information or get help right away. AI-powered chatbots are excellent for engaging your leads and providing them with a highly personalized experience.
According to studies, consumers prefer personalized experiences from businesses, and personalization in digital marketing improves conversion rates while increasing marketing ROI.
To compete and thrive in today’s competitive digital landscape, businesses must personalize their advertising. It’s not just about the data you gather. What really matters is how you use that data in real-time.