What is personalization?
Personalization is all about delivering highly customized experiences to customers. This can include things like personalized emails, website experiences, and even personalized ads. With the rise of AI and machine learning, it’s becoming easier for brands to deliver these personalized experiences at scale.
One example of personalization in action is personalized email campaigns. We all see this in the newsletters that we’re subscribed to, the beginning line a lot of the times are dear and it will be your name. By using data on a customer’s past purchases and browsing history for various brands and stores you also signed up for newsletters. A lot of times they’ll provide you with personalized recommendations for different products that you might like based on your previous purchases. So, by using data on a customer’s past purchases and browsing history, brands can send targeted emails with personalized recommendations and offers.
These types of campaigns can be highly effective with some studies showing that personalized emails have an open rate that’s up to six times higher than non-personalized emails. When you think about it, it’s like, do you want something that is directly meant for you, or would you rather have something more general that could maybe where one or two items might catch your interest.
Personalization can also extend to the customer’s experience on a brand’s website. For example, a fashion brand might use data on a customer’s past purchases and browsing history to recommend similar products or show personalized product recommendations on the homepage. I think we’ve also seen this a lot of times once we log in, we’ll see based on your previous browsing history, new products that you might like. I know we’re all accustomed, I know we’ve all seen this, and if you’re like me, I love these features. It makes shopping a lot easier and it makes me find more products that I will love.
This can help increase conversions and improve the customer’s overall experience on the website. Another way that brands are using personalization is through personalized ads. By using data on a customer’s past purchases, browsing history, and other factors, brands can deliver targeted ads that are more likely to be relevant to the customer.
I think we’ve all seen this and joked that our phones are listening to us and Google knows what we like and what we’re talking about because it’s so funny sometimes I’ll open my Instagram app and there we are, Facebook heard me and there is an ad for the lunchbox that I thought was really cute that had a bunch of compartments or the suitcase that is new in style or whatever it might be.
The ads that I receive are something that I wasn’t even thinking about that I am now very interested in. So there we are seeing personalized ads in action. This can increase the chances. The customer will click on the ad and make a purchase. In addition, here are a few more benefits to personalization.
Number one would be Improved Customer Experience. Personalization can help improve the customer experience by delivering tailored content and recommendations that are more relevant to the customer’s interests and needs. For example, if a customer has previously purchased a product from a fashion brand, they can use this information to recommend similar products and show personalized product recommendations on the homepage, and this can make the customer feel like their brand understands their needs and preferences, which leads to a higher customer satisfaction and loyalty.
Another benefit is Increased Conversions. Personalization can also lead to increased conversions by showing customers content and products that are more likely to be of interest to them. This can be especially effective in email marketing where personalized emails have an open rate that’s up to six times higher than non-personalized emails.
Another reason is Better Targeting. Personalization allows brands to better target their marketing efforts by using data on a customer’s past purchases, browsing history, and other factors to deliver tailored content and recommendations. This can help brands reach their desired audience more effectively and increase the chances that their marketing efforts will be successful.
Another benefit is Higher Engagement. Personalization can lead to higher levels of engagement by delivering content that is more relevant and interesting to the customer. For example, if a customer is interested in a specific product or topic, a brand could deliver tailored content or recommendations related to that product or topic. This can help build stronger relationships between the brand and its customers by showing the brand values, interests, and preferences.
The last reason we will talk about today is Increased Customer Loyalty. Personalization can help build customer loyalty by showing the customer that the brand values its business and is willing to go the extra mile to deliver a customized experience. This can lead to repeat business and positive word of mouth for the brand, as customers are more likely to recommend a brand that they feel truly values their business.
So overall personalization can be a powerful tool for the digital market. Helping to improve the customer’s experience, drive conversions, and build customer loyalty, and by using data and AI to deliver a highly personal experience to customers, brands can increase engagement, improve the customer experience, and drive conversions.