What is personalized marketing?
Personalized marketing can help individuals find new customers in various ways, from using third-party data collection to pursuing regional residents with specific knowledge gaps or tastes.
Personalized marketing targets individuals with different types of offers that they find more appealing than others. The result is tailored marketing that provides the best product or service to persons with the most important factor: the individual's needs.
How to create a successful personalized marketing strategy:
A personalized marketing campaign stands apart from traditional marketing campaigns because it reaches each customer with the right offer at the right time.
Here are some tips:
• Find out customers' preferences: Empower your sales associates by collecting information about customers' preferences. This will help them suggest new items or services that meet customers' needs.
• Collect data on social media: Social media is one of the best ways to collect data about your customers. For example, you can identify customers who gave positive reviews to a competitor's product by using an online review app like Yelp. After identifying their preferences, you can offer discounts and special offers to potential customers with similar tastes and needs.
• Content marketing: Content marketing strategies are used by many companies to promote their products and services. For example, a real estate agent can post a video on YouTube to introduce his country house. This video will encourage visitors to book a room at the property and tell them more about it with related content.
• Local marketing: A business's physical presence can be extremely effective in attracting customers. Place new signs on your property and advertise for new customers by posting ads in local media or placing promotional flyers.
Benefits of personalized marketing:
- 24% increase in revenue among firms with a data-driven marketing strategy
- 18% lower costs associated with promotions
- 32% increase in customers' company loyalty
Who uses personalized marketing?
Retailers and service providers can use personalized marketing to connect with their audience. Offering promotions or deals tailored to individual needs can generate more sales than traditional advertising methods. For example, Netflix uses online data to suggest TV programs its users will like.
Challenges of personalized marketing:
- Data security: The biggest challenge for businesses that use personalized marketing methods is data security. As more companies start to collect information about their audience, the number of data breaches will also increase.
- 10% decrease in sales per person when companies use inaccurate data to target their audience
- Confusing customers with irrelevant offers
- Increasing spam messages
Personalized marketing trends:
- Personalized video marketing: By analyzing data about their audience, companies such as Microsoft, Netflix, and Google use video to communicate with customers. For example, Netflix uses an artificial intelligence program to automatically create a personalized video for its subscribers.
- Pay per impact: Many retailers and service providers use data analytics to determine how effective promotional offers will be. For example, if the offer is seen on third-party sites, the company will pay the delivery company directly.