In this article you will learn:
The holy grail of marketing is creating powerful customer experiences, in order to create deep relationships that will drive brand loyalty. This is what every marketer out there is striving to achieve.
Unfortunately most of the martech solutions brands are using to create those experiences are only creating incremental improvements:
- Personalization tech is only focused on creative and not on the actual offer components
- Micro-segments or smart segments are still connecting consumers to mass offers
- Next-best-offer selections are being run against a static catalogue of offers
Ultimately, the consumer is left with the same poor experience, offers are transactional and brands are losing market and wallet share. In fact, 33% of consumers say the offers they receive are not relevant and 75% of consumers have tried new brands in COVID due to a poor customer experience.
And customers are having poor experiences - basic personalization techniques, like different types of creative or adding someone’s name to an email, are having little impact on consumer retention or driving brand loyalty. In fact, consumers are actually deleting huge amounts of what brands offer. Based on a recent study of more than 1000 consumers in the U.S.:
- 45% of consumers are deleting over half of the email offers they receive
- The top 3 reasons why consumers delete or ignore offers are:
- What’s offered isn't something they’re interested in purchasing (55%)
- Item being offered is not relevant to their life (56%)
- Offer value is too small (36%)
The data is there for brands to create these kinds of customizations, and brands are actively asking their customer base to share their personal information. However there is a difference between asking for the information, and activating it in ways that create truly personalized experiences for consumers. Nearly 60% of respondents believe they’re getting the same offers as their peers, even though they have different shopping habits and preferences.
In addition to being unimpressed by mass offers, modern consumers are demanding speed from brands in how they utilize the data that has been provided through purchases, loyalty programs or other means. When they provide their data, over 50% of consumers expect it to be used in personalized offers within a week of it being provided. But based on the amount of offers that are being deleted, clearly that activation of data is not happening.
There is some good news though. The survey also showed that consumers are positively influenced by personalization when it goes beyond simple creative changes or adding a consumer's name to an email subject line:
- 64% of consumers said they would complete a purchase from an offer if the discount or reward amount aligns to the amount they normally spend
- The top 3 things consumers want personalized in their offers are:
- Inclusion of a discount or reward amount that aligns to the amount they normally spend (64%)
- Brands or styles they regularly purchase (59%)
- Offerings aligned with their past shopping history (54%)
This means that brands do have a chance to positively influence their customers' loyalty and retention, if they put the right tools in place to personalize the elements consumers actually care about. In order to build relationships with the modern consumer, brands need technology that enables them to adapt to changing market conditions fast. In order to stay competitive with digitally-native companies, brands must think like technology companies, and completely revamp how they address retention and loyalty.
Dynamic Offer Optimization helps brand do just that.
3 Key Ways to Make Personalization Work for You with Dynamic Offer Optimization (DYNOO):
Make your offers more profitable over time.
Dynamic Offer Optimization automatically improves your offers based on individual consumer behavior. Machine learning and AI technologies analyze your customers’ behaviors and optimize each offers’ actions and rewards to improve engagement and revenue.
That means your campaigns evolve from being separate initiatives to a string of events that continuously optimize based on your customers’ engagement. Over time your offers get more personalized and profitable - without additional operational overhead.
Personalize down to the individual customer.
Segmentation is a means to marginal improvement. How personal can you get with an approach that inherently batches individual people into groups?
Dynamic offer optimization leapfrogs segmentation. It leverages machine learning and artificial intelligence to analyze consumer behavior at the individual level and automatically formulates offers based on behaviors. That means your offers are personalized for each individual customer - at scale - while being optimized for you profitability.
Harness the power of your 1st party data.
How much revenue growth are you leaving on the table by not maximizing your customer data’s potential?
Dynamic Offer Optimization enables you to activate your 1st party data to generate richer, more personalized offers that engage your consumers and drive loyalty.
When you integrate a DYNOO platform with your existing marketing stack, it will:
- Ingest and process data from your customer data platform
- Deploy campaigns through your existing distribution channels
- And fulfill rewards through your loyalty systems.
The future of customer loyalty requires a continuous, data-driven personalization strategy that creates deeper relationships, brand profitability and nimble market execution.
Dynamic Offer Optimization makes it possible.