Reaching today’s consumers is challenging. They have an infinite number of choices from online stores to brick and mortar, and they’re overwhelmed with a barrage of messages and offers from competing brands. All the while, they’re taking more control of how they interact with the marketing they’re exposed to.
According to Accenture, 91% of consumers are most likely to shop with brands that recognize, remember and provide them with relevant offers and recommendations. The best way to reach these consumers is through personalized offers. “Personalized marketing proves a brand’s dedication to their consumers,” said Tom Smith, CEO and founder of GlobalWebIndex. “It shows they’ve gone the extra mile to get to know who this person is. In today’s mass media world, this is an essential step in making real connections."
Personalized offers are a result from the evolution of marketing, using data as a foundation to move from traditional one-size-fits-all communications and promotions to those that are individualized. Personalization goes beyond simple segmentation and microsegmention to a tailored approach that requires continually adjusting to complex shifts in customers’ behaviors. And driving it all is data.
Personalized offers use data to enhance the customer's experience and foster stronger engagement. Collecting data – such as purchases, demographics and loyalty program activity helps to clearly identify their unique interests and motivations – then analyzing and effectively using it can help brands create offers, content and experiences that resonate with each individual.
Data-led personalization gives brands the tools to better understand their customers and strongly position themselves to give customers what they want, when they want it. With a continuous stream of real-time data, brands need to adapt their messages and offers to each customer's unique profile. Brands that do not have strong insights into their customers will find it difficult to deliver what they desire and expect.
This shifting approach to marketing is being driven by consumers, with 80% indicating they're more likely to make a purchase from a brand that provides personalized experiences, according to Epsilon.
Data is not only a powerful tool that provides a better understanding of your customer's preferences, interests and buying behaviors, it also helps drive business goals. Factors like customer experience and loyalty may seem hard to measure, but they do lead to real business results, such as generating lift or return on investment (ROI), increasing click throughs and conversions, reducing churn, driving more sales and increasing customer lifetime value (LTV).
In a report by Campaign Monitor, marketers saw an average increase in sales of 20% when they leveraged personalized experiences. While a recent Adobe study revealed that in order to compete in today’s digital landscape, personalization strategies are now table stakes for brands. They also found that 42% of respondents were annoyed when their content isn’t personalized.
If your brand is interested in utilizing personalized offers, here are some tips you should consider:
Simple demographics are no longer enough. In order to develop personalized offers, marketers must collect data based on a variety of criteria, including products purchased, clickthroughs, pages/content viewed, geolocation, email opens, demographics, behavior during previous visits and stage of the customer journey. The more data, the better the insights brands can get to develop personalized offers that resonate and incentivize customers into action.
Don’t collect data for data’s sake. Be sure that data you’re collecting answers the right questions, according to GlobalWebIndex. To develop successful personalized offers, it’s important to ask questions about your customers, such as:
With so much data, it can be almost impossible to develop personalized offers using traditional marketing solutions. The addition of artificial intelligence (AI) and machine learning (ML) to the martech stack can help make it more efficient to create offers at scale, and to continue refining personalization in real-time as consumers' interests and preferences evolve.
Personalized offers are the key to breaking through the noise and engaging today's consumers. Customer data can deliver insights that enable brands to personalize offers, communications and experiences that inspire loyalty. Greater loyalty translates into real business results, including higher ROI, increased sales and revenue, and an improved customer LTV.
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