The Best ROI In Marketing: Personalization

Omni channel personalization is here to stay. Nearly 50% of U.S. brands are working to streamline their brand experience within the next five years, as they chase industry leaders like Google, Netflix and Amazon. They are already seeing the benefits of personalization. But as a savvy corporate marketer, you need to take an objective look at what is going on to make sure you’re not just getting caught up in a fad. You need to be sure the money and time you’re thinking of spending to streamline your customer experience is going to have a positive impact and, ultimately, an increasing ROI.

In this article, we’ll explore how and why personalization is becoming a marketer’s primary focus and the fantastic ROI that comes from it.

Exclusive Bonus: Download this guide to learn the 3 easy ways personalization can increases ROI.

The Value Of Personalization And ROI

You can see it more and more online: companies of all sorts, like Google, Amazon, Netflix, and even a brick-and-mortar store like Best Buy, are integrating different forms of personalization to improve the customer experience and strengthen their brand.

You’ve probably had experiences with all of these companies, whether a personal Netflix account that you fiercely guarded, your email and browser settings, or your wish list on Amazon. All these industry leaders understand the value of personalization and have taken the wise words of Dale Carnegie’s 1936 timeless book, How to Win Friends and Influence People, to heart:

“Remember that a person’s name is to that person the sweetest and most important sound in any language.”

The Best ROI In Marketing: Personalization NectarOM

People LOVE hearing their name, and having things just for them – it’s hard-wired into us, and human nature!

Since the cumulative value of these companies is around 228.65 billion it must mean they’re doing something right; not only that but they’re on the leading edge of personalization and are implementing these features for one ultimate reason – because they increase their ROI.

As a business or marketer of any size or type, personalization isn’t something you can conquer in one leap overnight. It’s a new mentality that you can build into your business moving forward. The best part is, its positive effects can be felt immediately and the long term benefits will hit you like a wrecking ball. The result? Loyal customers who keep buying time after time, give you valued feedback, and don’t complain.

Too good to be true, right?

Wrong.

You can change your marketing direction just a little bit, and in a while, you’ll see significant changes. It’s a long game, and the psychological approach to omni channel personalization really seals the deal of why personalization is a must.

Let’s work backward to see exactly how it increases ROI:

Great profits and continually successful companies have loyal customers.

↓

Loyalty is created because the company provides consistent products and experiences the customer wants.

↓

Loyal Customers are repeatedly engaging with the company because they have an excellent system in place to deliver meaningful content.

↓

The company effectively introduces relevant content and recommendations that make customers feel special and keep them coming back.

↓

The customer will introduce their friends, who are equally valuable to the brand.

↓

Then repeats, following the “Good to Great” Flywheel effect, breaking through with increased sales.

 

And when you’re coming back, it means you’ll buy another product, or keep your subscription going, or click on more ads, which all increase ROI.

Exclusive Bonus: Download this guide to learn the 3 easy ways personalization can increases ROI.

Personalization Improves Clarity

The Best ROI In Marketing: Personalization NectarOM

Your brand is made up of the small interactions that customers have with it, sort of like a mosaic. Though you, the artist, know how you want it to look, will all your customers, who can only see a tiny portion, understand what you’re trying to convey? If they don’t know what you’re selling, you’re not going to make any money.

It’s imperative that brands have a consistent experience which links things together. With an authentic omni channel-integrated, personalized brand, a customer can understand it from any point of access.

If someone started shopping on their laptop and want to finish the process on their phone, the experience needs to be the same. If it isn’t, that could mean one less sale. Additionally, you can’t disregard that data and pretend like it didn’t happen. The implicit data could mean that the user is showing your business to a friend or trying to use it in a new way, which could represent a new group of customers.

Using Google as another example, someone might have been looking for vacuum cleaners while they were out on their iPhone. Google will remember that search, and then offer vacuum ads when they hop on their laptop.

To not connect the dots or log the mobile search with their overall system is losing potential revenue for Google, which could have displayed new relevant ads to make more money.

Tracking all aspects and interactions of customers with your brand will lead to a higher ROI.

Different Channels

The Best ROI In Marketing: Personalization NectarOM

A channel is any source of traffic coming to your business. Traditional digital channels include computer websites, mobile sites, social media presence, communities like Reddit or LinkedIn, ads, email marketing,apps, devices like beacons or Internet of Things (IoT). When marketing, it is important to have a comprehensive view of all channels.

This channel fit doesn’t only matter to you; it matters more for your customers. If your target audience spends a lot of time on Instagram, it won’t make sense to spend your marketing budget for LinkedIn ads.

Moving one step further with the Google example, understanding what channel people are choosing to interact with your brand is also crucial. Smart businesses never rely on one channel, as shifts beyond their control like Google changing their algorithm can completely devastate traffic.

One way tracking channel data can lead to a higher ROI is by cross-pollination, or reaching new channels.

Say you typically interact with a company solely through their website and emails. They should be tracking this data and using it to their advantage in their ongoing Facebook ad campaign. With this knowledge, they have the potential to show you content they know you’ll love, on a different channel.

Since you like the brand and are a paying customer, you choose to watch one of their news feed videos, and maybe even share it.

Bam. That share does something special.

By sharing this video, you’re introducing the brand to all of your friends. Not only that, but you’ve recommended their content by liking and sharing it.

This didn’t happen by mistake. Smart brands track data between channels to save on ad testing and deliver content that has already been proven to work. This is exactly how brands are getting more exposure, and in front of more customers.

Knowing where customers hang out will increase your visibility to get you noticed on an untapped segment. If you know what your customers are doing on your site, it’s essential to send the right message to them to get them moving, and increase your bottom line.

 

Personalization + E-commerce Example = Best friends

If the last example of growing your brand by tracking email stats and then using them in ads may have seemed a little complicated, this e-commerce example will be a no-brainer.
Any customer using an e-commerce site needs to log in to an account to put items in their shopping cart. This alone can give marketers a significant advantage for tracking data to be used for personalized content. Pairing this with the knowledge that 75% of online shopping carts are abandoned before checkout, you have an easy opportunity to make some additional sales.

The Best ROI In Marketing: Personalization NectarOM

All those abandoned shopping carts may look like a digital ghost town; but, the truth is, there are lots of reasons for abandonment, and it usually isn’t because you’ve irritated them. Maybe they were running late, got distracted by their children, or other dinner was burning?

As an e-commerce business owner, if you could stop this or get some of those lost carts to check out, would you? Of course. There’s no better or easier way to increase your ROI.

Understanding your customers and using omni channel integration will make it easier than ever to bring those ghost carts back from the dead.

It’s been proven time after time that sending personalized emails shortly after abandonment increases conversion anywhere from 8 – 20%. This is something as simple as showing what items were in the abandoned cart. This, the simplest of cross-platform integrations is a simple tactic can lead to great results.

 

What It All Means

It’s important to understand that the more you know about your customers, the better you can market to them. This means that integrating data from all of your different channels can help get a clear image and connect the dots of your brand mosaic. This ultimately allows you to make data driven decisions that will help your bottom line.

Tracking multiple channels, on multiple platforms, analyzing the data and making informed decisions to increase ROI is a job for a full marketing team if you want to do it properly. Luckily, our team at NectarOM has had lots of experience with this. We’ve knocked it out of the park for industry leaders like Michael’s, Vitamin World and many more. Our track record speaks for itself. If your business is at the point where you have traffic and sales but know it can be brought up to the next level, consider getting in touch to see how we can help.

Exclusive Bonus: Download this guide to learn the 3 easy ways personalization can increases ROI.

If you take one thing away from this, it’s that personalization is one of the best ROIs out there, with a significant shift happening industry wide, pushing towards complete omni channel personalization. The sooner you act to improve your customer experience, the faster you’ll see the results, and the longer they’ll last.

Why Email is the Most Underrated Personalization Channel

Over the past decade, faster computers, super-powered phones, and widespread access to high speed internet have made omnichannel access possible in a way that we’ve never seen before in human history. But despite all of the hype we give to emerging mobile and social channels, the humble email is still one of the most effective and reliable channels for marketers to speak with their customers. Here are a few reasons why.

Maximize The Potential of Your Mailing List

Thanks to ad-blocking software, today’s customers might not actually see any ads at all before streaming videos, on social media sites, or just while browsing the Internet. It’s a problem that we marketers struggle with daily throughout the industry.

Right off the bat, email has an advantage over web ads because of it’s still a channel that’s – for the most part – impervious to ad blocking software. Promotions, messages and the like will appear for your customers if they’ve added their info to your mailing list, so make adding to it a priority.

Email also boasts an incredibly high ROI, considering how few resources it takes to deliver. Other channels such as advertising through social media have their own advantages such as virality and views, but when it comes down to it, email has been proven time and time again to drive actual action and sales.

1) Email is your passport to the rest of the Internet.

Email supplanted direct mail by being faster, cheaper to produce, and more accessible on the go. So by that logic, you would think that texts, tweets, Snapchats and Facebook messages should replace email – but it simply hasn’t happened.

The thing about email is that it’s an indispensible “passport” to the Internet. Customers need an email address to pay for things, subscribe to services, and sign up for websites – social media sites still require one, and so do their apps.

Proof that there’s something here? Google recently announced their new Customer Match service, which allows companies to track and understand their customers’ needs through their Gmail and YouTube activity. This in turn will give advertisers the ability to more consistently retarget their buyers and provide more relevant content.

2) Email is about getting information.

Email metrics are more sophisticated than ever, meaning that in addition to being a cost-effective way to market new services and products to your customers, your emails can be a source of valuable information about your brand, market, and channels.

Using an email tracker can give you a huge amount of actionable data. You can learn when customers are more receptive to emails, what kind of marketing they respond to, and which channels (PC, laptop, mobile? Other?) they’re most likely to use to access and interact with your brand.

3) Email is the bridge between channels.

Old-school digital marketers cut their teeth on email by using it as a means of direct advertising.

In the Omnichannel Era, however, it’s equally as important for email to be used to continue the conversation that customers have with your brand on other channels, such as through your app, ecommerce website, or storefront.

For example: if a customer begins a transaction on your eCommerce website but later abandons their cart to run errands, sending them a triggered email could be just the push necessary to finish the sale.

Though the field of digital marketing is more sophisticated than it was ten years ago, the humble email is still a legitimate, high-ROI tool for advertisers looking to connect and interact with their customers. Make no mistake: though new technologies will change the face of branding: traits like creativity, ingenuity, and adaptability that define great marketers will never go out of style.

 

This article originally appeared on Business2Community.

Marketing Personalization: A Long Term Investment

With 94% of marketers agreeing “personalization of the web experience is critical to current and future success,” we know that personalization is an investment that yields impressive results.

However, personalizing content can take more effort than producing generic, robotic marketing content. Getting to know a customer’s habits and preferences can take time, and analyzing customer behavior may require a few extra resources from the marketer’s toolbox. Nevertheless, personalization is an investment worth making, as a 1:1 shopping experience yields dramatic increases in ROI.

How is personalization a “long-term investment”?

Companies might need to wait several months before seeing a significant payoff in any type of long-term investment. The time it takes for personalization to pay off varies, based on the amount of interaction a shopper has with a company. For example, the pay off for a consumer that purchases purchases from a company a few times each year is longer than the payoff of a consumer who buys from that same company a few times each week. The brand will subsequently have more opportunity to gather data about the frequent purchaser based on his or her purchases and will be able to use the applicable personalization techniques over time to increase revenue on the customer. The more you know about your customer, the better the payoff.

personalization-is-an-investment

Why does personalization yield results?

Customers prefer personalization. Tailored content enhances a shopping experience and makes a customer feel special. 1:1 marketing improves loyalty, strengthens business-consumer relationships, generates leads, and attracts shoppers. This all leads to an increase in sales and ROI. With all of these potential benefits, marketers should be more than willing to invest a little effort into personalizing content for shoppers.

How do you get that payoff?

Investing in personalization is a three-step process. Marketers should practice the following steps for maximum ROI.

  1. Collect customer data: Data is the backbone for a personalized marketing campaign. Companies can collect customer data with a Data Management Platform (DMP), and make adjustments to marketing strategies based on what customer data tells them. Companies can retrieve data by offering exclusive customer membership accounts, promising an exchange of personal information like name, address, and birthday, for special offers and discounts. Companies can also collect data from customers’ past searches or purchases in-store or online. After compiling this information, marketers can then…
  2. Analyze customer data: Customer data analysis shows whether a marketing strategy is working or failing. By evaluating specific metrics, marketers can figure out their customers’ preferences. Each interaction between a consumer and a business contributes to their 360-degree customer profile. The more interactions a consumer has with a business, the more complete their customer profile will be. Complete profiles allow businesses to adjust their marketing strategies and provide relevant content for customers. With a customer profile, marketers can proceed to…
  3. Create content based off of analysis and customer profiles: Once a company figures out which marketing messages their customers prefer, marketers can begin drafting personalized, relevant content. This tailored content may include products similar to past purchases, or special offers based on birthdays or location. Data analysis is reflected in every aspect of customer content – from a personalized subject line of an automated email to a list of recommended products on a website.

The collection, analysis and content development process should be a never-ending cycle. If companies slack on collecting customer data, marketers could miss important changes in customer preferences. This could lead to an inaccurate data analysis. Mistakes in data analysis – or neglecting to analyze data at all – can taint marketing content. And failure to adjust marketing messages can lead to a drop in sales, as nearly 75% of consumers dislike irrelevant content. Interested in learning a little more about marketing personalization? Check out some of personalization basics here.

Why Trigger Marketing Matters

trigger marektingAs They Say…Timing Is Everything

As a marketer, you’re probably thinking about how to acquire, grow and retain customers.  That’s a lot to do! There’s a lot to process as well as consider with marketing personalization. You’ll often hear important key terms mentioned including customer engagement, 360 degree customer profile, big data, CRM, ROI, segmentation, hyper-personalization and one-to-one marketing. These are all necessary components to create successful marketing personalization so your company can deliver the most relevant content in real time.

Amid these components is trigger marketing. In a nutshell, trigger marketing is the engine that hums continuously. There’s a constant stream of messages being deployed to to your customers based on behaviors, browsing history, purchases, interests, etc. Delivering a successful trigger marketing campaign entails combining these pieces of big data, identifying an event in a customer’s life that warrants a need and communicating during these pre-planned points in time.

Having the right road map can make it easier to achieve success and the desired outcome. As part of the email marketing campaigns, triggered email marketing is at the core of helping to drive engagement and revenue.

Delivering a successful campaign is your ultimate goal.  To achieve that, there are 3 key elements to remember…

Find the appropriate trigger – The content within these marketing campaigns should be based on your customers immediate needs.

Cultivate the right offer – Triggers have to be followed up with relevant products & offers.

Timely Execution – Presentation should occur immediately after an appropriated trigger.

As a business owner, you want your campaign to drive both traffic and revenue. There’s always a concern of frequency, value and appearance with trigger marketing. And, the big question lingers…”Do people mind followup emails?” The answer is yes. Keep in mind, though, it’s all about presentation, timing and tone.

Here are some tips to keep in mind for what your customers are looking for…

1.  Acknowledge me. I just signed up to receive emails from your company.  A welcome or thank you email is a considerate means of acknowledging my interest and introducing your company, products, offers, etc.

2. Entice me a little. The operative word is little. There’s a fine line between enticing me and conning me. Why should I become and remain a loyal customer? Based on my personal information, how can your company suit my needs more efficiently and cost effectively then company A or B?

3. Where’s my receipt?  I made a purchase and I’d like to have a transactional email for my records. I’d like to double check to see if my order is accurate and things processed correctly with my bank.

4. Spark my interest. I recently ordered a new bedding set, a few bathroom accessories and some end tables. It’s safe to assume I’m updating my home. I’d be interested in additional products you offer based on my purchases. Window treatments? Kitchen accessories? Area rugs? Go ahead, inspire me.

5. Nudge me a smidgen to try something new.  I’ve worn Crocs flip flops for as far back as I can remember. It’s my brand of choice, however, there’s a chance I order a pair year after year out of habit. Expand my horizons. Is there a flip flop that’s similar made by SKECHERS or Nike? Show me. I might just consider stepping out of the box.

6. I like special treats on my birthday. A gift basket filled with gourmet treats showing up at my door compliments of your company isn’t feasible, I know. However, how about a special offer, discount coupon or, at the very least, a Happy Birthday greeting?

7. Get me excited. Is there an upcoming event that you know I’ll be head over heels about? Let me know about it. As the event nears, send me a reminder or two because I’m busy and I may have forgotten to make note of it.

8. Offer a token of appreciation for my business.  I’ve been a loyal customer for quite some time. Whether it’s a personal note or a 20% off coupon on my next purchase, it’s nice to know my loyalty is appreciated. I’m making the choice to do business with you. Without loyal customers…well, you get where I’m going with this?

9. I’m not a fan of creepy. Offer discretion when analyzing my browsing and purchase history. Any mention in your emails of the amount of time I spent browsing products to diminish the appearance of stretchmarks will be duly noted. This will not work in your favor in more ways than one.

10. Touch base with me. I’m busy. Often times weeks go by with very little time to spare. I may not have had time to browse, shop & make a purchase. I may have even left a product or two in my cart.  Send me an email. Remind me there’s a product in my cart and, if you really want to earn brownie points, offer me a coupon towards my purchase. Score!

As mentioned, with trigger marketing, it’s all about timing, relevancy, tone and presentation. Remember, your customers are real people. Address them as such, respect their time, send offers that fit their needs and time it just right. Capture the attention of your customer by establishing the appropriate trigger. Materialize the immediate needs with applicable products, offers, and information.  With automation and the right set of tools, these triggered events can be both automated and intelligent. Once these fundamentals are in place, you’re ready to execute.

Enhanced by Zemanta