Personalization has become a crucial aspect of modern marketing, as businesses strive to understand and meet their customers’ unique needs and preferences. In today’s digital age, consumers expect personalized interactions across all touchpoints, from the web to mobile to in-person interactions. The COVID-19 pandemic has only accelerated this trend, as more people turn to online shopping and seek out personalized experiences.
Personalization is the new marketing currency for marketers to interact with consumers in exchange for brand loyalty and increase customer retention. Twilio also reflects this in a report that highlights, 62% of consumers saying that a brand will lose their loyalty if they deliver an un-personalized experience, up nearly 20% from 2021. However, some studies have estimated that personalization accounts for about 14% of a company’s total marketing budget. This share of the budget will only increase, as companies realize the impact of personalization such as the delivery of higher returns and greater customer satisfaction.
Leveraging data for Personalization
Fortunately, technology has made personalization easier than ever before. Companies can collect vast amounts of data on their customers and use automation technology to deliver individualized content and recommendations. However, the most effective approach to personalization is one that leverages identity information and behavior data. By understanding who their customers are and how they interact with their brand, businesses can target the right message to the right person at the right time.
Businesses can source data through ethical methods such as surveys and emails, which can assist them in garnering more knowledge about their target customers and making sure that the efforts to personalize experiences and products are actually effective.
The benefits of personalization are endless
While personalized marketing may seem daunting, the benefits are clear. Companies that excel at personalization generate significantly more revenue than their competitors