Personalized content increases marketing spend efficiency by 10 to 30 percent. Eighty percent of marketers say personalized content is more effective than cookie-cutting campaigns (Demand Metric). Traditional marketing costs 62 percent more than content marketing (demand metric). At the same time, marketers are much less optimistic about their ability to personalize effectively.
According to the same report, only 32% agree that marketers are doing the right personalization, and only 18% are very or extremely confident that they have a successful personalization strategy. Personalized marketing is a more profitable strategy than traditional advertising. When you send a general ad, a certain percentage of the audience won't use the product. The return on investment (ROI) is limited.
Emails with personalized subject lines are more likely to open. Personalization makes content marketing messages feel more personalized to the individual. By leveraging the data you've collected from your audience, you can boost open rates while increasing the overall effectiveness of your marketing efforts. Like all marketing strategies, there are challenges that arise when it comes to personalized marketing.
Instead of seeing personalization solely as a marketing or analytics issue, they see it as an opportunity for the entire organization. According to Forbes Insights and Arm Treasure Data's The Clear Path to Personalization report, 48% of marketers cite data quality as a major obstacle to effective personalization. While some argue that personalization should only take place after the end viewer has consciously provided information to the company, other companies use anonymous data, such as the location attached to the viewer's IP address, to target viewers by location. The increased scrutiny under which personal data can be acquired and used is creating another major challenge for marketers.
When it comes to selling physical products to customers, personalization becomes difficult because you are trying to reach a large customer base. For digitally native companies that create a data-driven, direct-to-consumer model, personalization is not only about the way they market, but also the way they operate. The top five benefits of personalization include increased visitor engagement (55%), improved customer experience (55%), improved brand awareness (39%), higher conversion rates (51%), and increased lead generation and customer acquisition (46%) (source). From product recommendations to personalized offers, these interactions can provide real value when solving a problem, meeting a need, or delivering pleasure.
Personalized marketing is about tailoring your marketing based on the data you've collected from your contacts. Dale Carnegie knew what it was about when he said, “A person's name is to that person the sweetest and most important sound of any language. Every time you create a web copy or add features to your product, ask yourself how a living, living version of your shopper character would respond to your work. Empathy, the ability to relate to and understand someone else's emotions, is the foundation of strong relationships.
The key to effective personalization is a customer-centric approach and a greater focus on zero-party data. Of consumers have chosen, recommended, and even paid more for a brand that provides a personalized service or experience. .