Last few years, personalized marketing has become a trend in the marketing world. Expectations for personalized experience are growing day by day. Moreover, 71% of consumers prefer personalized ads. Marketers aim to exceed these expectations and get the benefits of tailored marketing, such as higher ROI and conversion rates.
Customers value this one-on-one marketing technique, which is why they engage with the content and project in return. Personalization will become even more important to gain attention, and retain and engage customers as people are swamped with digital marketing communications across nearly every platform.
WHAT IS PERSONALIZATION IN DIGITAL MARKETING?
Personalization in digital marketing is an incredible tool that has been shown to boost campaign outcomes when used engagingly and authentically. In digital marketing, personalization refers to the ability to tailor messaging to specific customers. Customers' experiences are personalized based on their previous activities, purchases, demographics, and browsing habits. Several points in the customer journey might be customized. Customize ad text, landing pages, emails, discount offers, sale notifications, product or service recommendations, and much more.
BENEFITS OF PERSONALIZING YOUR MARKETING?
Companies are gradually realizing the value of customized marketing. Personalization is something that 89% of e-commerce businesses have invested in. Some of the advantages of customized marketing are listed below.
Increase repeat purchases: 44% of consumers will become repeat buyers after a personalized experience with a brand.
Drive sales: marketers report a 20% increase in sales after adopting personalization.
Increase purchases: 80% of consumers have a high probability of buying from a business that provides personalized experiences. Personalization efforts can increase revenue by up to 15%.
Boost ROI: advanced personalization offers a $20 return for every $1 spent.
Decrease customer acquisition expenses by up to 50%.
Enhance customer loyalty since brands offer consumers exactly what they want.
HOW IS PERSONALIZATION DIFFERENT FROM CUSTOMIZATION?
It is excruciating to see individuals confuse personalization and customization. Yes, they both put users first and seek to engage them with engaging, contextually relevant experiences, but their approaches are vastly different.
So, what separates the two?
As you may know, personalization entails providing customers with a one-to-one marketing experience. It all starts with gathering a large amount of qualitative data on your target audience. Amazon, Netflix, and YouTube are excellent examples of personalization done correctly.
Recommendations are thrown out based on what visitors are doing on the site.
Customization, on the other hand, is about allowing customers to create a product or service based on their personal preferences. Simply said, it puts individuals in the driver's seat, giving them total control over anything they want to maintain or lose.
For example, Canva, a free (or paid) graphic design platform, is used to create social media graphics, presentations, posters, documents, and other visual content. Users can customize their graphics by changing the font, layout, colors, etc., and also by adding (or deleting) any element, they can use any of their customizable templates or can start from scratch.
Nike makes extensive use of customization, allowing customers to modify their shoe designs and even share them on social media. Of course, flaunting on social media is another technique to bolster a shopper's ego, because someone out there might compliment them! For Nike, this may mean more customers visiting their website and purchasing their goods.
As the e-commerce market becomes more competitive, firms are seeking ways to differentiate themselves and gain a competitive advantage. To gain customers and their wallets, innovative firms are turning to market personalization.
According to studies, customers expect personalized experiences from organizations, and personalization in digital marketing improves conversion rates while increasing marketing ROI. It's also critical to determine what's holding you back.
Businesses must customize their advertising to compete and survive in today's competitive digital landscape. It's not just about the info you gather. What matters is how you use that data in real-time.