Personalization in the context of marketing is the process of tailoring content and communication to individual customers based on their interests, preferences, and behavior. It involves businesses collecting data about customer interactions with their products and services, then leveraging that data to create emails, ads, website pages, and other content that is tailored or “personalized” to each customer’s specific interests.
Personalization in marketing is important because it allows businesses to engage customers on a 1:1 basis. It provides a level of customization and engagement that traditional marketing methods cannot offer. By personalizing content and communications, businesses can create more meaningful connections with their customers and build relationships that last. This ultimately helps them to drive more repeat sales and higher average order values, and increases customer loyalty.
Personalization in marketing is an effective strategy for connecting with target audiences and nurturing existing customers. By leveraging data to deliver personalized messages, companies can create more meaningful experiences and increase overall engagement.
Research from McKinsey found that personalization can lead to 5-15% increases in sales margins and 10-30% increases in marketing spend efficiency.
Personalization strategies are particularly effective for email marketing campaigns. Studies have found that emails that use personalization in their subject lines are 26% more likely to be opened than those without personalization.
Furthermore, personalized emails have higher click-through rates (CTRs) than non-personalized emails, resulting in increased conversions and revenue.
Overall, personalization is an effective strategy for increasing engagement, conversions, and revenue for businesses. By leveraging data to create personalized content and experiences, companies can build stronger relationships with their customers and drive growth.
Here are 5 examples of how businesses are using personalization in their marketing strategies:
Customizing webpages based on the visitor’s demographics, past purchases, or other factors to provide a tailored experience.
Sending emails with personalized subject lines and content based on the recipient’s interests and preferences.
Recommending products to customers that have similar tastes or needs, to what they have purchased before – and are in stock.
Offering specialized deals for customers based on their past behaviors or interactions with the brand.
Creating marketing campaigns that speak directly to an audience’s specific needs and interests through targeted messages delivered through multiple channels (e-mail, SMS, etc).
SAP Emarsys helps leading brands like PUMA, Pizza Hut, and Nike to understand their customers’ wants and needs, then deliver sophisticated, cross-channel personalization in real time.
