Personalization: Finally Consumers and Marketers Agree!
There is no wonder why Coke’s #shareacoke campaign has had huge success this summer – who wouldn’t want a bottle (from one of the biggest brands in pop) personalized with their name on it?! For those of you who haven’t seen the campaign, you need to be enlightened by one of the cutest campaigns this summer.
Scores of people are taking road trips to find bottles emblazoned with their names, posting pictures and videos on social networks with many going viral. One couple even hijacked the campaign to make their own personal announcement receiving over 1.5 million views. Part of the reason for the success of the campaign – personalization!
Coke gets it – and more brands need to hop on board. Consumers prefer relevant, personalized offers; while marketing professionals find making content personalized can be a major revenue driver. Marketing professionals and consumers unite: personalization is key!
According to research conducted by Forrester, smartphone owners prefer personalized communications compared to any other form. International Data Center (IDC) also found that about half of consumers preferred relevant, personalized offers from retailers.
Membership in US retail loyalty programs has grown to more than 1 billion, up from less than half that number in 2006. As their experience with these programs deepens, consumers have begun to expect more personalized offers and services in return for their participation. Thanks to the increased sophistication of behavioural and demographic data loyalty programs provide; retailers can satisfy those desires while also addressing their own data requirements, according to eMarketer.
Consumers Will Give You Access – But What Do They Get?
Today’s consumers realize they need to trade some private information to receive more relevant offers. According to Forbes Insights, more than three-quarters of consumers saw the benefit of trading personal information for more relevant discounts and offers, and 62% were willing to do so in return for personalized offers.
Getting personal with your consumer involves gathering mountains of data from various touch points; retail operations, customer volunteered information and data aggregators. Collecting customer data is only part of the marketers’ challenge. There’s a huge leap from gathering data; to having data organized finely enough to provide personalized and individualized recommendations that enhance the customer experience.
Marketers can now take information gleaned from shopping habits and other preferences and then shape the messaging in order to have a greater impact on customers.
Identify Consumer Preferences
Harris Interactive found that the majority of recipients of communications containing personalization from previous shopping experiences and preferences would be more likely to increase their purchases. In fact, 81% of respondents said they were at least somewhat likely to make additional purchases, either online or in-store as a result of those personalized communications.
82% of respondents positively reacted towards receiving more communications, as long as the new correspondence took into account previous shopping habits.
Consumers have already voiced interest in receiving personalized communications, and recent polling suggested that personalization would be a key trend across all consumer communications this year.
The November 2013 Conversant study highlighted that three-quarters of US senior level marketing professionals and agency decision makers agreed that “individualized messages and offers will be more effective than mass messages/offers”– they all say “personalized one-to-one marketing is the future”.
Demand for Personalized Content on the Rise
Heightened consumer demand for messages related to their interests, explains the driver behind the response from executives. Probably the most important reason for the rise of personalization is the high ROI it yields. A recent Tnooz study found that 80% of respondents say personalized content plays a part in their decision to purchase. Marketing professionals also mentioned the same benefits but have also identified increase in repeat purchase as the most desirable benefit. So, not only are consumers more likely to interact with personalized messages, they’re also more likely to spend more money with brands that implement targeted programs.
Not every brand has a product they can personalize like Coke but, it’s clear that communications tailored to your consumer forming 1-to-1 relationships with your audience will increase engagement rates, customer satisfaction and your brand’s revenues.