Despite a growing global concern with data collection, a third of Americans say they’re happy to trade their personal data for more personalized online experiences and ads. Brands that practice ethical, transparent data collection have a powerful tool for giving consumers the personalization they want. In fact, according to a leading research and advisory organization Gartner, Inc., organizations that have fully invested in personalization will outsell companies that have not by 20% in 2018.
A 2017 Forbes article pointed to personalization as a leading factor in driving impulse purchases, increasing revenue, minimizing returns, and building customer loyalty. Whether applying data to the creation of more relevant content or to programmatically-generated recommendations, personalization is a powerful tool for optimizing the customer journey.
Use demographic data for segmented marketing
Traditionally, marketers have relied on biographical and demographic data to create segmented marketing campaigns. Segmented marketing offers greater individualization than mass marketing by transforming target audience data into a generalized customer avatar. This avatar acts as a guide during the creation of marketing campaigns. It provides helpful insights into how to best target a unique audience with content.
When companies are first launching their brand or a new product or service, having a customer avatar helps to generate a content strategy that will appeal to the most likely prospects. However, segmented marketing is just the first step along the personalization path. It’s easy, and it’s effective, but with more data, greater personalization is possible.
Use customer behavior analytics to automate marketing personalization
While demographics offer a broad view of a target market, customer behavior analytics offers a deeper dive into personalization. In a 2013 interview, Todd Yellin, VP of product innovation at Netflix, told Mashable, “It really doesn’t matter if you are a 60-year-old woman or a 20-year-old man because a 20-year-old man can watch Say Yes To The Dress and a 60-year-old woman could watch Hellboy.”
In other words, demographics are not destiny.
Capturing and utilizing behavioral data can have a profound impact on companies who use it to personalize marketing. According to McKinsey & Co. companies that harness customer behavior data outperform their peers by 85 percent in sales growth. Fortunately, customer behavior analytics can be easily adapted into automated personalization such as transactional emails and relevant product recommendations.
Use data obtained from customer loyalty programs to create custom content and offers
While the percentage of Americans willing to give personal data in exchange for personalization may remain at 30%, nearly 7 out of 10 U.S. adults are willing to give companies access to basic personal information in exchange for better service or products, according to Loyalty360. As it happens, this personal information is exactly what a business needs to facilitate the personalization of content marketing.
Customer loyalty programs reward customers who make frequent purchases, and they’re growing in popularity. They offer a unique win-win situation for companies and the people they serve. The customer gets a reward in the form of free merchandise or coupons while the company gains access to more detailed data. By implementing a loyalty program, brands can build their database while delivering personalized perks to individual customers.
Don’t have the bandwidth to deep dive into data and personalize marketing?
You’re not alone. A recent Hubspot report found that many brands didn’t leverage personalization because they didn’t have the capacity. Either they lacked the technology, the bandwidth, or the data to make personalization a reality. Businesses that partner with Morgan & Co. don’t have that problem.
At Morgan & Co., we take a data-driven approach to media and advertising. We’ve invested in cutting-edge technology that equips us to illuminate trends, target your audience, and optimize message performance, site traffic and conversions for a strong advertising ROI. We use a proven analytics system to track performance and measure the achievement of your business goals. We empower our clients to make the most of data and personalization, positioning them at the leading edge of their industries.
Contact us today to learn how we can help you develop a more personal approach to data-driven marketing.