WHAT IS PERSONALIZATION?
Personalization is the process of handcrafting a service or product specifically for an individual or group of people based upon some past information. Personalization is one of the key components of digital marketing. It helps a brand in creating meaningful and deeper bonds with its target audience. Personalization makes the audience feel connected to the brand at every single level.
Let us take a look at a small example to understand how personalization exactly impacts an individual. Imagine, it’s your birthday today. You are in high spirits and eagerly looking forward to the day. You are excited for the day but above all you are excited about the presents you’re gonna get from the people.
Everyone comes around, hands you their gifts, you cut the cake and the day comes to an end. You take the gifts to the room and in all enthusiasm start unwrapping them. When you open all the gifts but nothing seems relevant or meaningful to you. You start to feel dejected and then your brother comes to you and handovers his present to you. You open it and find out that it’s the same watch you have been searching for on the web night and day and which you eagerly wanted to own for the last one year.
Now that gift adds meaning to your life in some way or the other and is relevant to you because it aligns with your interests. It will just not make your day but put a big smile on your face. That is the power of personalization, my friends. That’s the beauty which it imparts. Personalization makes you feel that someone genuinely cares about you and knows you inside out. It helps to separate generic approaches from special ones.
Personalization VS Customization:
People often confuse themselves between customisation and personalization. They are pretty close terms and share an outlook which is very similar in many ways but there is a huge distinction between them. Personalization, as talked earlier is all about creating user nucleated experience. It makes use of data and information of the users for its implementation.
OTT platforms are very nice and apt examples of personalisation. They tend to suggest content according to your liking and previous watching stats. Whereas on the flip side, customization is about giving a user the freedom to modify a product or a service as they want. Customization gives the users full control over a service where they can tweak things according to their taste and likings. Customization can be widely seen in the e-Commerce world. Brands give their users freedom to customize products to best suit their needs. Shoes, portraits, and pieces of clothing are some examples of customizable goods.
Personalization in digital marketing is all about crafting an user experience that’s specifically and perfectly tailored keeping all the needs of an user in mind. It makes use of extensive amounts of data to bring about the best results. It is the result of a long evolutionary process of advertisements. The grounds of advertisements have been changing from time to time and this has made advertising very powerful and impactful over the years. There is still a plethora of space left in the advertising world for discoveries of possibilities.
PERSONALIZATION IN DIGITAL MARKETING:
Personalization is a kind of individual marketing in which a brand keeps in mind all the data and the information of an individual and then crafts a marketing scheme specifically crafted for that individual. The idea of not treating each and every individual in the same and exact manner is very important and a lot of companies across the world that market their products and services are trying to figure out a way to do that better.
Personalisation is all about customer-centric outlook. When we talk about personalization it’s also important to talk about how it’s not only about user targeting, it’s to a very far extent about helping out the users throughout their journey to make it more smooth, memorable and easy. Let us take a super relatable example. When you use Starbucks mobile app to place a coffee order, it suggests to you the coffees that are most preferred by you based on your past buying pattern. This is a prime example of personalized marketing but your personalization journey does not stop there. When you get the coffee, you actually have your name written on the cup. It makes the whole customer journey memorable. This small personalization gesture makes a user feel more connected to a brand and creates a long lasting impression on the user.
Let us dive deep into the benefits of personalization in digital marketing:
1. Customer engagement
Customer engagement is very crucial for a brand from every single perspective. The more engaged the customers are, the better they bond with the brand. While, in this fast moving world it may be a challenge to grab the attention of customers towards a service or a product, it can be further more difficult to keep that attention intact for a longer period of time. This is the point where personalization comes into play and spreads it’s magic like the world’s best magician.
Personalization helps a brand to give a personal touch to their marketing and this personal touch helps to keep the customers engaged. For example, if you receive a notification with your name specifically in it, at least for once you would like to read what’s in there. On the other hand, if you receive a general notification with a message common for all you will most likely skip it. Quality personalized content can be best used to engage the customers.
2. Customer retention
Customer retention is very critical for a brand’s sales and revenue. It is a key factor which sets apart a struggling business from a prospering one. Customer retention also gives space to a brand for trials and errors at the time of product introduction. Customer engagement is the building block of customer retention. Iteration of customer engagement with a brand’s content leads to customer retention. If a customer is fully satisfied with a brand’s marketing and content they would look forward to it’s products too. Personalized mails, personalized offers, interesting products are some of the personalization which can skyrocket customer retention.
3. Customer bond
Over the years, marketing strategies have been tuned and tweaked to bond better with it’s customers. Building a long lasting and bidirectionally impactful bond with the customers have been placed on the top of the priority list of the brand. Personalization plays a very important role in building a strong bond with the customers. Moreover, personalization overtime helps a brand to deepen its bond with their customers through working significantly on the data collected from the customers in the journey of the relationship. Data helps to understand the customers of a brand better and brings out significant details of their neural patterns, thus allowing brands to modify their approach from time to time towards their customers.
Personal touch in marketing added with the help of personalization grabs customer’s attention and curates them to know a brand. Personalization gives the customers a sense of comfort and feel of belonging towards a brand through relating with their personalized content.
4. Customer experience
At the end of the day, every brand in the world wants to add value to their consumers and user’s life in some way or the other. A brand is all about treating the customers in the best way possible and taking care of their utmost satisfaction. At the core of customer experience lies countless contributions of personalization. Personalized content helps a brand to place customer experience at the epitome. It improves the outlook of customers towards a brand. Personalization helps a brand pitch the most suited marketing content to their customers which is tailored keeping them in mind. This enhances the user experience by a long margin.
5. High revenue generation
The whole working ecosystem of a company or a brand is someway or the other dependent on its revenue. Revenue is like the backbone of an organisation which supports the organisation to stand straight at every given moment. Personalization plays a very crucial role in higher revenue generation. The brand-customer relationship built through personalization is one of the main factors for higher revenue generation. Personalization makes the customers of the brand revisit the brand time and again. This increases the chances of sales for a brand thus ultimately contributing to higher revenue.
When customers are approached in a personalized manner, the chances of interaction between the customer and the brand becomes a lot higher than usual. Imagine yourself as a customer that shops from 4 different brands. One day you are hit by marketing messages from each brand. Three out of four brands sent you a message which is general and was common for all. While on the flip side the fourth brand took efforts to send you a message which had a tinge of personalization to it. The messages sent by three brands were good and apt but it’s a no brainer why you will be most interested in looking forward to what is written in the last brand’s message. This is the difference which personalization creates and this is exactly how it impacts the whole ecosystem of conversion.
7. Brand loyalty
Brand loyalty majorly depends on the value a brand provides to the life of its customers. The more dedicated a brand is towards its customers, the more loyal customers are towards a brand. Personalization is the gateway for building customer’s loyalty towards the brand. It shows the customers that a brand deeply cares about them and makes efforts to better their experience with the brand.
Personalization is one of the key elements of digital marketing. It sets a brand apart from the other brands by a mile because of the impact and effect it has on a brand’s customers. It’s the most interactive way of reaching out to the customers and not just interactive it’s the most expressive way too. Brands are able to speak so much more with personalized marketing. Personalization is the perfect way for a brand to show how much they care for their customers and how far they can go to provide them with a good experience. Personalization makes the whole experience of the customers so much better and wholesome. Hence it changes the whole perspective of the customers for a brand by bringing a huge change in the customer’s outlook for its service and products.
The power of personalization is best understood when you put yourself in the shoes of the customers. It starts to make much more sense when you place yourself in the spot of customers. Personalization brings in more and more space for the customers to explore while deeply connecting with the brand at every single standpoint. Personalization creates a huge difference in the customer-brand relationship.
However it enables brands to bond with the customers at a deeper level and for a longer period of time. Personalization comes with a lot of benefits attached to it. Hence it aids brands in customer retention and customer loyalty which in turn helps t he brands to generate more revenue. All in all personalization is one of the key components of digital marketing which creates a huge difference and does magic. It’s a game changer for brands as well as customer’s experience. For more information you can contact Digital Ipsum Pte Ltd.