Personalized Marketing
What is personalized marketing?
Personalized marketing is a form of marketing that tailors a brand’s messages, products and services to the needs and preferences of individual customers. With personalized marketing strategies, companies can create more engaging customer experiences across all marketing channels—including email, mobile, web push notifications, in-app messaging and more.
A personalized marketing approach helps businesses understand their customers better in order to build stronger relationships over time. In theory, it should also lead to a higher conversion rate, as the content is tailored to meet a specific customer's pain point or needs.
Benefits of personalized marketing
Personalized marketing has several key benefits, including:
Customer engagement
Personalized marketing content helps build trust between a customer and brand. It helps foster a relationship that makes customers more likely to return, improving retention and brand loyalty in the long run.
Increased sales
Personalized messaging and offers are a great way to encourage people to buy, and to do it more frequently.
Improved relationships
The more a company understands about a particular niche, the more they can improve their product or service and marketing tactics to better engage with them and meet their customer needs.
Higher ROI
Personalized marketing can produce higher returns (ROI) than other forms of marketing, if the right people are targeted with the right messaging and offers.
Better open rates
Personalized emails have an open rate 29% higher than non-personalized emails. SMS marketing with personalized messaging can have an open rate as high as 98%.
Improved customer satisfaction
Thanks to personalized features and automated tools, businesses can improve the speed and quality of customer service. As an example, personalized chatbots have a 70% satisfaction rate among customers.
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Cons of personalized marketing
While personalized marketing can be an effective form of small business marketing, there are a number of downfalls to take into account when planning your strategy, including:
Privacy
Personalized marketing must be done properly in order to protect customer’s personal and private data. Understanding local and national laws regulating the collection and use of personal data is essential before embarking on a personalized marketing plan.
Data misuse
Personalized marketing is all about the collection and use of data for targeted campaigns. Because there’s a focus on more data being collected, there’s a higher risk for theft or abuse of it.
Time consuming
Personalized messaging involves crafting personalized content to communicate with specific customers or groups. This can be time consuming and requires more resources.
Types of personalized marketing
Personalized marketing can be applied to different advertising and marketing campaigns:
Targeted emails: An example of this could be an online store targeting a customer who’s purchased baby clothes from them in the past. With these preferences in mind, the small business can create a new email campaign offering discounts on baby clothes.
Personalized product recommendations: When brands know which products and services customers search for or purchase on their website, they can offer the same groups similar products. Knowing their audience is already interested in the offer, brands can further leverage these preferences to entice customers with a special discount.
Dynamic landing pages: Landing pages are a popular marketing strategy with the potential for personalization. Dynamic landing pages are designed to speak to a customer's specific preferences needs, including using different images, text and CTA’s according to preferences like location.