Personalization will be the prime driver of marketing success — how to get ready for it
The COVID-19 pandemic has created a new set of shopping behaviors that are redefining the way we buy goods and services.
The pandemic has introduced new technologies, such as virtual reality and augmented reality, on top of the existing ones, such as Amazon and Facebook, and a new set of services, such as Instacart, that have created new ways to shop. In the coming years, we will only see a surge in personalization — from personalizing our homes to personalizing our travel.
The advancements in technology, data, and analytics will soon allow marketers to create much more personal and “human” experiences across moments, channels, and buying stages. The best way to achieve this is to focus on creating a seamless experience for their customers, which means being able to sense when a customer is in need and then providing a relevant experience at that time. This also means investment in technologies and processes that can sense and capture the subtle signals of a customer’s needs and then use that information to personalize the marketing experiences they provide.
Here are some ways to stay relevant:
1. Usage of First-party data:
This refers to the data that is generated from interactions with a business’s products or services rather than data that is collected by a third party. For example, if a business collects data through their website, such as a user’s email address, this is considered third-party data. However, if a user downloads an app on their phone, makes a purchase through the app, and provides their email address as a form of verification, this is considered first-party data.
The key to capturing and using first-party data is to build a relationship with your customers over time, which means providing them with relevant and personal experiences that help them achieve their goals.
One way to do this is when businesses invest in their own first-party data. Although first-party data is not a new concept, the staggering amount of data available on an individual level, thanks to technologies like the camera on our smartphones, has made it much easier for marketers to build a profile of their customers. This is especially true for brands, who have access to rich data on their customers’ behaviors, preferences, and interests. As a result, first-party data will become a lifeline for marketers and publishers, allowing them to build the most relevant experiences for their customers and generate the highest Return on Ad Spend (ROAS).
2. Email marketing as an innovative tool:
Email is thriving as an innovative, go-to platform for personalized marketing operations that nurture customers throughout the buyer journey. Especially since the death of cookies (more on this in my next blog), this has become way more relevant than ever before.
Email will now have to be more of a dialogue between brands and customers, as opposed to a broadcast medium. The result will be more sophisticated email campaigns that are personalised to a customer’s interests and preferences. For example, instead of sending an email to the entire database, a business now will be able to create a more targeted campaign that is sent to a subset of their database based on the customers who have shown an interest in a certain topic or product. The result is a much higher rate of open and click-through, which translates to higher conversion rates and revenue.
These are some ideas to get started. The key to success is staying on top of the changes — and it all starts with digital literacy. The future of personalization is here and is moving fast, with multichannel marketing, email personalization, and first-party data strategies. Are you prepared?