Today’s consumers expect and demand personalized experiences/products while shopping. This is why brands and retailers are willing to walk the extra mile to create an effective personalization model that will ensure customer loyalty and revenue growth simultaneously.
Combining traditional channels with new and social ones to provide consumers with personalized products and services proves that the brand is not oblivious to a customer’s needs, and that it still strives to offer customers what they actually seek and not just what suits the brand best.
What is personalized marketing?
Personalized marketing is an approach that companies take to offer bespoke or customized products/services to consumers. It is based on the analysis of data collected from these consumers that clarify their preferences unmistakably. The goal of any personalized marketing tactic is to engage and delight potential as well as existing customers through communication as customers wish to be seen as intelligent decision makers and not just as accounts and prospects.
Did you know that there are 170000 ways to customize a beverage at Starbucks?!
Starbucks is also known to offer a plethora of plant-based drinks for non-dairy lovers and vegans appealing to the masses.
In the past few years, Starbucks has successfully managed to secure a foothold amidst a crowd of other coffeehouses thanks to its fresh and realistic personalization stratagem. An individual is presented with a myriad of options that he/she can choose from. In addition to this, additional food items are suggested to the buyer based on their past choices and combinations. The idea is to provide a cohesive experience which can create a sense of belonging and familiarity in the buyer’s mind. The strategy to offer personalized products has done wonders so far – further cementing the company as one of the most recognizable brands in the world.
Benefits of personalized marketing
Understanding the need for personalization pays off eventually. Currently, offering personalized experiences will help a brand stay afloat in a cut-throat market. In order to thrive, it is essential for brands across all sectors to understand and acknowledge the ever-evolving needs of their consumers. Here are some benefits of personalized marketing:
- Increase in brand loyalty: When consumers interact with company representatives or contact center agents, they take time to open-up and share their specific requirements in depth. Customers expect to be treated as individuals with unique preferences. Brands willing to invest their time and resources to implement personalized marketing strategies will have a competitive advantage in terms of brand loyalty and customer retention.
- Customer profiling: Once the likes and dislikes of a particular customer are known, it becomes easy for a brand to understand their buyer persona and eventually, produce ideas/services that suit their specific preferences. Offering personalized services will also help brands create customer profiles for future business strategies.
- Improved customer experiences: Customers are more than willing to talk about preferences if their favorite brands are up for customizations. Online consumers spend a significant amount of time filling in survey forms, and responding to push notifications that ask them about their likes and dislikes. The data helps brand representatives and agents to devise personalized customer experiences which guarantees effective usage of time and delivery of personalized products/services at the end.
- Revenue growth: By identifying preferred channels and mediums of the consumer base, companies can create personalized interactions and experiences that will ensure an increase in brand awareness and lead conversion.
What can happen due to lack of personalization?
According to a survey by Gartner, brands can lose up to 38% of their customers due to lack of effort in personalized marketing. Even though most companies strive to provide one-to-one personalized interactions and services to their customers, failing to do so can result into a significant blow to the customer base. Personalization is tricky business – the inability to get a service or product tailored to fit the specific needs of a consumer, can cost the brand a loyal customer in the long run.
Personalization was once limited to a specific range of products and services. Recently, it has become an integral part of customer experience journey. Customers do not shy away from personalization requests from a brand or retailer. If a retailer or brand refuses/fails to cater to these requests, consumers will simply shift their focus to a competitor.
Getting personal is the key!
In 2011, Coca Cola launched its ‘Share a Coke’ campaign in Australia, with a similar campaign launched in the U.S in 2014. The labels on the bottles contained some of the most popular first names in each country as the brand’s attempt to expand their brand visibility amongst millennials. This was a great personalized marketing move on Coca Cola’s behalf as most millennials shared the thrill and excitement of seeing their names on a Coca-Cola bottle. Millennials who witnessed others were motivated to buy themselves a bottle and experience the same kind of zeal.
The fundamental concept of personalization involves paying attention to a customer’s requirements. When a customer is made to feel important by a brand, he/she develops an unsaid connection with the brand, creating a strong affinity towards the latter. Having established this, it is the company’s responsibility to come across as helpful instead of creepy. Bombarding potential customers with unwanted calls and queries can backfire. Large-scale personalization initiatives take a lot of time, effort, and meticulous planning.