Understanding 1:1 Marketing & Personalization – How to Create Your Own Strategy
Want to enhance the customer experience? How about increased revenue? If your answer to both of these questions is a resounding YES, then know that implementing personalization techniques in your business practices is the key to success. Think about the following statistics – a study of 650 marketing campaigns by MindFireInc found that personalized campaigns always triumph over static campaigns when it comes to generating more responses from recipients. Another report by Infosys found that an overwhelming 78 percent of consumers want to buy from retailers that provide discounts and offers catering to their desires and interests.
In today’s digital age you need an edge over your competitors, and that edge comes in the form of 1:1 marketing. If you don’t know what that is, read more below:
Understanding 1:1 Marketing
This is a strategy crafted using digital technology and data analysis that focuses primarily on marketing tactics and messaging aimed at a prospective or existing customer. So, what you end up with is a fully customized program designed to fulfill the needs of individual buyers. Whereas mass marketing targets a broad audience or demographic, 1:1 marketing and personalization essentially appeals to a single customer, and is therefore considered the truest form of targeted marketing.
What Makes It Work?
To fully realize the potential of 1:1 marketing, businesses need to obtain as much personal details about a prospective buyer as they possibly can. Thankfully, we live in a time when individual customers willingly or unwillingly share vast amounts of data. Once this data is analyzed, leverage it to offer targeted and customized recommendations and offers. Design the messaging to attract the individual customer based on their interests, past behavior, and other information.
1:1 marketing works best through digital media and has yielded great results for advertisers. Track information via beacons, cookies, or interactive web tools. Each of these resources offers up a ton of data that are commonly used by advertisers to streamline the ads shown to viewers and individual users on their channels.
How to Create Your Own 1:1 Marketing Strategy?
This is a four-step method that involves:
- Identification: During this process, collect data. Gather demographic data like age, sex, and location.
- Differentiation: This step of the marketing plan involves analysis. Help your business segment users into easily identifiable niches for better targeting.
- Interaction: Use the collected information to establish contact with your existing or potential customer. Reach out to them using the methods and the medium that is most likely to elicit a response.
- Customization: All the personalization happens at this stage. Use the available opportunity to close the deal.
How Can 1:1 Marketing Benefit You?
Now that you have a better grasp of what 1:1 marketing involves, it’s time to come down to the brass tacks. Specifically, how it can benefit your business. While we’ve touched upon it above, you might have more doubts in your mind regarding the impact of this sort of personalization on your business and consumers. Well, implement the strategies properly, and you might be looking at the following rewards:
Enhanced Customer Experience
Your customers feel better about sharing their personal details with a brand when they are getting something in return. Once they realize the sensitive data they are providing will improve their chances of receiving a more personalized experience, they will be more than happy to fill out your forms, take part in surveys, download whitepapers, and indicate the best preferences and purchases. Remember to keep the data safe, however, as Talend found that 53 percent of consumers break up with a brand as soon as they become victims of a data breach.
Identify and respond to the proper channel for individual customers if you wish to increase your ROI. The right automation technology makes it easy for marketers to identify the channel being used by customers. Then, you can easily follow up across channels due to the omnichannel approach.
Greater Brand Loyalty
Consumers who submit data want to be treated by brands as individuals with unique preferences. Dedicate resources and time towards implementing a successful loyalty program and you can gain a competitive edge both in terms of customer satisfaction and brand loyalty.
Consumers interact with brands via different channels, including mobile, social, email, etc. Sometimes they use all of these in one day. For that reason, brands need consistency more than ever before across all their channels. Your in-store experience needs to match the app experience you provide users, which in turn should be compatible with your email messaging.
1:1 marketing is highly effective but complex. A long-term process, it involves efforts from everybody on your marketing team. Don’t be intimidated by the sheer volume of data and strategies needed to pull it off. Take it slow and enjoy the major long-term gains.