Marketing Personalization, an indispensable element of your strategy

The way consumers interface with brands has changed profoundly, and their expectations of companies have grown significantly.

The growth of these expectations has profoundly changed the challenges facing marketing; consumers are interacting with brands by leveraging an increasing number of channels, from mobile to social, and companies are struggling to manage and especially to use the enormous amount of data available to them today. A research study conducted by Forrester on behalf of PWC entitled “The Power Of Personalization,” delved into the various aspects related to marketing personalization, seeking to explore with 101 companies how effective their programs for personalizing the consumer experience are. The most common obstacles to implementing such a strategy are also analyzed. Of the importance of Marketing Personalization we had already written in this article, Marketing Personalization , Beyond Marketing Automation.

Let us now look together at the key Insights that emerged from this research.

• Personalization-analysis and data
  – Increase customer satisfaction
  – Increase customer loyalty levels and reduce churn rates
  – Target new customers and increase conversion rates
• The Challenges of Personalization
  – Managing Consumer Expectations
  – Managing and Leveraging Consumer Data
  – Properly Managing Consumer Relationships
• 4 tips for a personalization strategy

In the “Consumer Era,” customization is unavoidable

Analyzing the responses to this question, we can see that customer loyalty and the acquisition of new target consumers through more effective campaigns are primary goals of personalization

In fact, 79% of respondents believe that personalization is an essential element in order to achieve their Marketing and Customer Experience goals.

Specifically, personalization of the user experience is essential for:

– Increase customer satisfaction

Today, more than ever, competition is just a click away, and personalization can be the differentiator that can offer unique and differentiated experiences that are critical to maintaining high customer satisfaction levels.

– Increase customer loyalty levels and reduce churn rates

Increasing Customer Loyalty is crucial as it is undoubtedly much less costly to be able to retain a customer over time than to attract a new customer. Increasing Customer Lifetime Value is a fundamental condition for being able to substantially improve the income statement of one’s business and ensure its sustainability.

– Targeting new customers and increasing conversion rate

The ability to target new customers with relevant and personalized campaigns can attract more on-target customers, who will then have higher-than-average conversion rates. Thus, one of the goals that can be achieved with personalization is definitely related to improving the effectiveness of acquisition campaigns and related ROI.

Challenges to be faced

Greater consumer choice, both in terms of products and channels available, equates to greater personalization challenges for brands. Seventy-one percent of respondents agree that the proliferation of touchpoints has significantly increased consumers’ expectations of their experience with the brand.

This undoubtedly represents a new challenge for marketing, which must necessarily, in order to be effective, attract new customers by offering them impeccable service that turns them into loyal customers over time.

The biggest challenges companies face are:

– Managing consumer expectations

Consumers today expect not only to interact with companies through their preferred devices and channels, but they expect those experiences to be enjoyable. Product and service offerings must be relevant, personalized, and offered at the right time, regardless of the channel used

– Managing and leveraging consumer data

Companies have at their disposal an amount of data that they have never had in the past, so it is critical to organize to collect and make this data usable

– Properly manage the relationship with consumers

The line between offering relevant messages and being overly “intrusive” (at the expense of privacy) is really thin. That is why it is essential to be able to properly dose, by automating the process, the level of pressure and the way we relate to our consumers.

4 tips for a personalization strategy

We conclude by reporting the top 4 tips developed by Forrester to succeed in creating a successful personalization strategy

1. Equip yourself to meet increased consumer expectations….o it will be tough to compete! This is regardless of the Industry you work in, there is no industry that will not be heavily affected by this.
2. Craft personalized marketing that extensively and differentially covers different Customer Experiences. Create experiences and content that enable you to meet the needs of different consumers.
3. Focus on getting results quickly and easily. Be data-driven in identifying the major pain points that will get you the best results in the short term while improving consumer experiences and your ROI.
4. Create information architectures that can withstand and support a high level of customized strategy.

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