Friday, 28 Feb 2020

BRIDGING THE GAP WITH PERSONALISATION

Marketing strategies have long been the driver of success for many businesses, and currently personalised marketing, also known as one-to-one marketing or individual marketing, joins the ranks of business marketing strategies in this modern era, thanks to advancements in data collection and analytics – among others – bolstered by the mushrooming of digital technologies and devices.

In its simplest iteration, personalised marketing curates and provides a customised experience for customers, be it for apparel, ride-hailing services, publishing or retail, to name a few.

Customers are inundated with a vast number of choices of products and services, and when a business customises a simple touch-point such as an email, based on the in-depth knowledge of the customer’s preferences and dislikes, then personalised marketing has bridged that gap between what is available on the market to the customer’s specific, individual needs.

Before we delve into the exciting area that is personalised marketing – with its endless potential for innovation -- and how businesses can have that competitive edge with this strategy, we should understand the important difference between segmentation marketing and personalisation marketing.’

Segmentation marketing groups consumers based on a bundle of characteristics, for example, the way a department store segments ladies’ apparel in one section and men’s attire in another. Personalised marketing tailors product or service recommendations based on knowing each customer on a deeper level, thus, to take the analogy of departmental store clothing to another level, the salesperson would bring forward clothing to the customer knowing their budget, their colour preferences or even the desired cut and size of the clothes.

    There are business reports that point to measurably distinct business benefits and advantages for companies that invest in personalised marketing and some surveys report how personalised marketing can and does significantly impact what the majority of consumers purchase. 

    When customers or consumers are presented with content (emails, articles, banners, pop-up ads or surveys) that they find relevant to them, they are more likely to promote that brand, especially online.
    The argument is that a personalised marketing strategy and personalised customer focus breeds loyalty and increases conversions, and thus, it is advantageous for businesses to investigate personalised marketing more deeply.

    How it works

    Personalised marketing relies on data collection, data classification, data analysis, data transfer and data scalability, and there are varying and numerous technologies that can do these different tasks.
    Technology allows marketing professionals to gather first-party data (gender, age, location, income). This set of data is then linked to third-party data (data collated from a third-party app or programme providers) such as click-through rates from online banner ads or how many times a consumer has viewed an ad on social media.

      Personalisation tactics and deployment

      Personalised marketing, considered one of the most effective methods by some brands, can be executed in multiple ways beyond the simple act of constructing a personalised email to your customer that is specifically addressed to them with content that has been customised to align with their needs.

      Sending the right message to the right customer at the right time can make your message resonate that much more.

      An example of a successful personalisation marketing tactic is when drinks giant Coca-Cola replaced its soft drinks logo with consumer names, aimed at spreading advocacy with its #shareacoke campaign. The campaign, executed in 2012, produced a significant rise in sales in over a decade for the manufacturer. 

      In 2017, Cadbury’s jumpstarted a personalised social video marketing campaign that allowed consumers to craft a personalised video that used videos and names taken from their Facebook account. That fact that recipients got to view these videos sent to them by typing in their phone number into the Cadbury page online meant that the company now had access to first-party data.

        There are websites (such as e-commerce sites) that use device and location information to create personalised and niche marketing ads, or service providers such as Netflix that use previous actions by viewers to curate and customise viewing recommendations for its viewers. Oftentimes, readers, viewers or the casual online reader are often unaware that the ads that they are seeing were dispatched to them thanks to algorithms working in the background in predictive modelling and personalisation.

        For example, footwear giant Nike targeted consumers in different regions with personalised content for mobile devices using aggregated data collected from loyalty programmes, as well as by purchasing consumer analytics from a third party as well as data from their product personalisation app. Such vast amounts of data allow a company to craft country- or region-specific adverts with tailored narratives, helping to forge that last mile of emotional connection with the audience, and ultimately, the customer.

        Data gets personal

        Successful personalised marketing depends on, and needs, lots of data.

        Data’s central and crucial role in personalised marketing programmes or software means the integrity of that data is equally crucial. Businesses need to, firstly, protect this data to ensure its accuracy and storage (without it falling into the hands of competitors).

        The protection of data is thus essential before any campaigns can be embarked on or formulated. A sound business investment decision would be to acquire a reliable solution, for example, Celcom’s Cloud Secure Web Security and Email Security business suite.

        These real-time business solutions are not only compatible with multiple platforms – Windows, iOs, Android and mobile – but also provide the ease of a cloud base, which means wherever your business takes you, your data is still reliably protected. 
         

          Most importantly, the data – your business data – is protected from cyber-threat and cyber-risk, the risks of which could translate into costly business mistakes or errors.

          Protecting the data -- for personalised marketing or analytics -- is a business imperative and priority that can translate into sustained benefit.

          When consumers see online ads or recommendations from brands that read, for example, “customers who bought this also bought,” these prompts are based on mountains of insightful data. 

          Data can be collected not just from actual purchases, but also from wishlists created by users online when they browse e-commerce sites.

          The key to all this collected data is how a business translates that data into action. Data-driven personalisation is useless without implementation.

          Data is also collected from loyalty programmes or digital self-service customer check-out points.
          More importantly, customers who once had reservations about data privacy now understand that sharing their data can be useful as it means they receive less generic communications from brands, companies and businesses. 

          Conversion to success

          Brands, businesses and companies that feel as if they need that competitive edge in their future campaigns need to think thoroughly on how personalised marketing can help them capture the consumer’s attention. Ultimately, personalised marketing can help a business spark interest, convert that interest into revenue and extend that relationship into retention.

          Businesses that are ready to invest in personalised marketing strategies and campaigns must be ready to do so consciously and carefully, as the consumer will recognise the effort as the mark of a brand that knows what it is doing, that knows how best to serve them.

          Check out Celcom Cloud Suite for more information about the product.