The growing marketing trends and constant evolution of it are businesses more advanced at its customer approach. Recently emerged trends of personalized marketing are being the staple of every business’s growth. It’s a practice of analytics that makes advertising and approach more filtered in an effective way that offers a unique customer experience to everyone. It is more than just sending emails to the customers but reaching out to the right customer at the right time to enhance their interaction with service and products even more.
Personalized Marketing is one of the advanced practices of marketing approach that is widely used by many businesses. If you are still unaware of how to integrate into your business, here’s a complete guide.
What is Personalized Marketing?
It is one of the most important aspects of marketing where a business tailors its marketing depending on the data collected from the contacts and active customers. It can include multiple elements like purchasing history, shopping and brand preference, interests, most viewed items, and many others. The is further used to customize the content that buyers receive via email, advertisements, and other suggestive methods which make them feel special or give enough importance to their choice. Such an advanced marketing approach is proving to be much effective.
Personalized Marketing Trends
Many businesses are already getting familiar with this strategy and utilizing different forms and mediums of communication to offer customers a unique personalized treatment.
Custom Emails
Among the horde of emails received every day, 29% of the customers prefer to open personalized emails more than generic ones. As a result, these mails are capable of generating 6x more traffic and business interaction.
Targeted Discount Offer
More than 60% of the customers are more likely to interact with targeted discount offers within an hour after the mail is sent. Providing customers discount on the products exactly they are looking for is the key here.
No More Generic Advertisements
After a certain point of time, most customers have stopped accepting generic advertisements that are sent to everybody. After sending all the mails, only one-third of the total customers might like to approach for it. On the other hand, 70% of the total customers are more likely to respond to personalized advertisements.
Benefits of Personalized Marketing
There are a lot of beneficial aspects of Personalized Marketing and some of them are,
Satisfying Customer Experience
It is pretty obvious that we are more inclined to trust people who understand our needs. Similarly goes with businesses, as customers tend to trust the brands that give importance to their customers’ needs. Personalized Marketing is more like a customized plan for each user which makes them interact with the business platform more while enhancing their purchasing behavior.
Gain Customer Loyalty
When a business understands its customer’s requirements, the customers are more likely to stick to that business as it starts to fit in their taste and budget. It is important since 65% of the total business is generated by repeat customers. More than 40% of the total customers agree with the fact that personalized marketing helps them is buying the right product at the right time.
Better ROI and Sales
It is one of the most cost-effective ways marketing does not cost more than going for generic advertisements. In the case of traditional marketing, the amount of return on investment (ROI) is limited. On the other hand, personalized marketing can provide better ROI while making a nominal investment. More than 85% of the customers are happy with their purchase when personalized marketing is taking place.
A recent survey says personalized marketing can boost the sales of a business up to 10% with promising growth in the future.
Challenges of Personalized Marketing
Even though personalized marketing is one of the beneficial marketing trends, it also comes with a few challenges which make it a little difficult to execute. Here are some common problems,
Gathering Data
Gathering data without hassling your customers might be difficult to execute as it completely depended on the activities that the customers already made on the platform. It requires predicting how a customer will respond to a certain offer, product, or situation along with an advanced CRM (customer relationship management) tool to keep the data stored.
Gathering data can be done in two ways.
Analytics – Analytics help to track the customers’ behavior helps to suggest them accurately. But at the same time, some customers can feel uncomfortable after getting ads for the products that they have recently viewed. It hampers their sense of privacy.
Survey Forms – Customer Survey Forms are more transparent and users feel comfortable filling a form by answering themselves. However, filling out a form requires time and most customers are busy and impatient enough to skip the forms.
Balance of Subtlety
Customers might like when they get personalized mails from the brand they like but at the same time, they dislike it when it becomes too strong. Aggressive personalized marketing can make your customers worried about their privacy. A survey says that only 6% of the consumers are happy to get retargeted advertisements.
Resources
To develop and integrate effective personalized marketing requires a dedicated workforce, time, labor, and cost to personalized data. Even if automated CRM software is utilized, it still needs to be planned, targeted, and tracked. The initial investment and funneling the resources is the key here and some of the businesses can fail to do that.
These challenges can be an obstacle for businesses to execute a successful marketing plan. However, if it is done right; the trends can boost the growth of the business. A good plan of personalized marketing can work as an enhancer to the business and helps to gain more success through increased sales and customer loyalty.
