Is your brand clear on what personalization means?
Personalization isn’t new. Because the topic is so broad and complex, it can be nebulous to define and measure. It’s also evolving quickly – with technology transforming how we deliver personalized experiences quickly and redefining the standard of what good looks like. Limiting your personalization to email or landing page is not enough.
Marketers and loyalty experts agree on a few basic principles to approaching personalization:
- The more you know about someone (either inferred or predicted) the more personalization can be leveraged.
- Zero and first-party data are key to unlocking the personalization consumers expect.
- Generative AI is rapidly evolving to create meaningful brand experiences and personalization at scale.
Despite knowing and understanding the importance of perzonalization, things fall flat is when it comes to:
- Pulling together the contextual understanding from that data to activate meaningfully is a challenge.
- Delivering personalization at scale and with consistency across channels and partners requires integration.
- Measuring the business impact of personalization efforts is difficult to attribute to personalization alone.
- Balancing the decrease in consumer trust with effective increase of AI reliance is a growing concern.
Personalization is an expection. Here’s why you should get it right.
Personalization matters more than ever. Increased online interactions enable marketers to know more and predict more about consumers than ever before. It’s an expectation, especially as a member, to receive personalized offers and experiences. This is even more critical with the death of cookies and the decrease in consumer trust on how brands are leveraging their personal data. The future is focused on automation, AI-generated content and predictive modeling to unlock all the benefits that personalization can drive.
- Better for Members: 71% of consumers expect companies to deliver personalized experiences. We also see that expectation translate to business impact, with 78% of consumers more likely to make a repeat purchase or to recommend and refer from companies that personalize. Increasingly cluttered inboxes and mobile channels leads consumers to ignore or opt out of even the best personalization efforts. Consumer trust is also on the decline, with the rise of misinformation and prevalence of bots, and the concern that AI may mistreat personal information.
- Better for Business: Companies that capture more value from personalization grow faster, with a 40% increase in revenue from personalized marketing actions or tactics. It’s proven difficult to attribute the gains of personalization across the ecosystem, especially with a hefty pricetag (up to 14% of of the marketing budget). The focus of personalization has shifted to be a data hygiene, CD, security and tool enablement dialogue.
But, you don’t need to go at it alone.
We believe in order to fully unlock the value of personalization, you must consider both member and business perspectives.
Kobie provides a comprehensive suite of strategic and technological solutions, guiding marketers in translating personalization into a dynamic member experience across the entire lifecycle and various channels. Similarly, for your business, essential aspects include selecting key martech tools, implementing Customer Data Platforms (CDP), orchestrating customer journeys, addressing financial considerations, and ensuring seamless data accessibility.
Sources:
- https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying
- https://www.gartner.com/en/newsroom/press-releases/2019-12-02-gartner-predicts-80–of-marketers-will-abandon-person
- https://www.gartner.com/en/newsroom/press-releases/2023-12-14-gartner-predicts-fifty-percent-of-consumers-will-significantly-limit-their-interactions-with-social-media-by-2025
