We may hear the term personalised marketing branded around, however many of us are not really sure what it actually is. So, to begin with we will outline what personalised marketing is and how it works. We will also take a look at the benefits of personalised marketing and the best approaches of it.
What is Personalised Marketing and How Does it Work?
Personalised marketing consists of targeting a specific customer and aims to satisfy an individual customer and is therefore a focussed marketing strategy i.e. offering a personal touch. Whereas, on the opposite hand is mass marketing which aims to please a larger audience. If personalised marketing is to work, a business must have access to as much personal information about their target as possible. As there’s a lot of data about us available these days, businesses can analyse this data and then use it to create a marketing strategy and help aid your unit planning.
Print and digital media are the best ways to engage in personalised marketing campaigns. With regards to print a company, they will need to have crucial equipment such as print finishing machines and finishing equipment. They also need to have a printed label supplier who can provide them with print labels including industrial labels.
When it comes to digital media, information is collected through cookies and interactive features which are available on websites for example. All of this information provides businesses with a great deal of data which can then be used for marketing purposes.
What are the Benefits of Personalised Marketing?
There are three key benefits of personalised marketing:
- Personalised Marketing Is Useful
We are inundated with advertisements and services and the best way of reaching out to potential customers is by making a marketing campaign personal. It may seem like a personalised marketing approach is gimmicky, however a personal touch is the best way of making your product or service recognised in a world which is flooded with products and services.
Although personalisation may seem gimmicky at first, there is no doubt that doing it well helps consumers navigate a noisy world in a relevant, helpful and, ultimately, profitable way.
- Personalised Marketing Increases Customer Retention
If a business has an after-purchase loyalty program in place then customers are more likely to come back to the same business for a product or a service again. This doesn’t really come as a surprise as retention relies on familiarity and a relationship which are two aspects that personalised marketing is all about.
- Personalised Marketing Improves Conversions
If a business uses personalised marketing it is said to increase their sales conversions. For example, BMW have said to have had a $500,000 increase in revenue when they sent 1200 personalised text messages to customers in the United States.
How do you Create a Personalised Marketing Strategy?
If you wish to create a personalised marketing strategy there are four factors to take in place:
At this point data such as location, age and gender are collected.
At this stage, the data is analysed and then separated into the specific categories that are to be targeted.
The date is now used to reach out to current or potential customers via print or digital media.
The final stage is where personalised marketing takes place and a company tried to obtain the custom.
The Best Approaches of Personalised Marketing
In order to achieve the best results from personalised marketing, a strategy needs to be in place which collect information and data in as many ways as possible. Examples are social media and email marketing which is direct. These two methods are great ways of obtaining data. It’s vital to remember that any data collected is kept safe in order to protect sensitive and personal information. This data should not be able to be accessed by anyone who is not authorised to do so. If a business is able to automate data collection, this is also advantageous as it means that marketing and sales staff can spend their time working with new customers rather than spending valuable hours working with them. It’s also important to make sure that you keep an eye out of what is and isn’t working when it comes to your personalised marketing strategies. If something isn’t going so well you need to amend this aspect in order to ensure that your investment in this area is worth it.
Obstacles to Overcome with Personalised Marketing
Personalised marketing is not suitable for all businesses. If a business is small then it may be difficult for them to be able to create a budget for a personalised marketing strategy. In this kind of situation, a small business would need to create a leaflet or a flyer to suit the masses and then a loyalty program could be put in place to retain custom. This could be in the form of coupons or rewards.
An Example of Personalised Marketing
A popular form of personalised marketing is via email. We have all at some time probably received an email which is personalised by being addressed to us. This enables a company to be able to have personal interaction with you and this connection then causes an increase in their sales. Personalising with a name is regarded as very basic these days and many companies are now much more advanced in the ways that they use personalised marketing.
Many of us will have used the site Amazon. It’s not hard to believe that whilst we use sites such as Amazon we are part of a personalised marketing campaign. For example, we are provided recommendations which suit what we are looking for or may have looked for in the past. Amazon as a company gather data from its users and do track how we browse the site and the purchases that we make. With this information they can then make recommendations which suit the customers’ needs and interests.
It’s clear to see that there are many benefits to personalised marketing for your business and it’s something that’s now a part of our everyday lives, even though we may not even be aware of it.