Tuesday, August 20, 2013

Personalization: How it impacts marketing

What marketers are not doing

The vast majority of marketers are fully aware of the benefits of personalisation. They know full well that personalising the website and, by extension, the other brand touchpoints, for customers makes for a better experience, and that all marketing is good marketing if it has the personal touch.
As Econsultancy’s research shows, 74% of marketers know that personalisation increases customer engagement. Curiously then, the same study highlighted that only 19% of marketers are actually using personalisation.
 
Perhaps it would do to briefly re-examine three benefits of personalisation:



Personalization increases conversions

Personalization demonstrably increases conversions. After it’s joint venture switchover in 2011,Co-operative Travel has seen a 95% increase in visitors and 217% increase in revenue once it started implementing personalisation onitsr website.
Similarly, BMW netted a cool $500,000 in revenue by personalising MMS messages to 1,200 customers in the US, improving conversions by 30%.
BMW

Personalization improves customer retention

It’s one thing to improve conversions, it’s another to increase recurring conversions, advocacy and retention. Econsultancy’s research showed that post-purchase loyalty programmes which contained personalised offers were one of the most important factors in encouraging repeat purchase.
This is hardly surprising. Customer retention is built on relationship and familiarity, two things that personalisation both facilitates and is predicated upon.

Personalization makes your marketing useful

There is an overload of content, products and services out there. By providing a personalised experience, particularly one that is predictive rather than reactive, brands have a real opportunity to provide much-needed utility in an increasingly noisy world of choices.
The vast majority of marketers are fully aware of the benefits of personalisation. They know full well that personalization onsite – and across other brand touchpoints - makes for a better customer experience, and that good marketing can be made better with the personal touch.

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