Best Practices in Personalized Marketing

Aug 20, 2017

Logistics Optimization

The progress of digital marketing over the years has been phenomenal. Advertisers used to rely on one single message for all to do the job in traditional media. However, with the advancement in digital media and big data, it is possible to personalize the marketing communication down to a single customer. Since the need and preference of each customer differs from the other, companies can increase their ROI on marketing spend by using personalized marketing. By tracking each customer activity such as likes, clicks, buying behavior, influencers, location, and demographics, marketers can use personalized marketing to promote only the products which the user is most likely to buy.

Personalized marketing is still in its nascent stage and companies are experimenting with a lot of ideas regarding this field. Some ideas work out well and yields impressive result, while other like TESCO predicting and exposing a teenage girl’s pregnancy before breaking news to her father could lead to a PR disaster. It becomes essential to follow personalized marketing best practices:

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#1 – Don’t Bombard the Customer

The most popular form of personalized marketing is to bombard the customer with promotional campaigns of a product they just checked out online. In some cases, the customer is just casually browsing the product, and the next thing they know is the product is being marketed in emails, websites, videos, blogs, articles, mobile, and apps.  Overdoing it would seem creepy to the customer and waste the marketing resources. A good practice would be to mix the product with similar products to keep the user interested.

#2 – Don’t Stop Testing

All decisions made to execute personalized marketing should always be tested. A/B testing for websites could be extended for use in personalized marketing. All personalized marketing content such as website, e-mails, and product suggestions should be tested. The reason being that usually customers browse the product just out of curiosity, to check the prices, compare the product, or buy the product for someone else. Continuous testing helps identify the customer’s real interest.

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#3 – Rightful Channel Attribution

The data gathered from personalized marketing effort should be monitored using analytics tools to provide insights and point out areas of improvement. Using such tools, the company can identify what sources are effective so they can efficiently allocate marketing budget. It is also essential to attribute the sale or website visitors to the right channel to track effectiveness. Channel attribution usually depends on the nature of product, but it is advised to adopt a time decay attribution model rather than last click or linear attribution model.

#4 – Constantly Monitor Your Strategy

Personalized marketing, similar to other marketing strategy is not a one-time-setup job. Since the digital world is constantly changing with the evolution of big data and Internet of Things (IoT), it is essential to revisit the personalized marketing strategy and implement new ideas to make the process more efficient.

Companies are always experimenting to find the right mix for personalized marketing to be more efficient and increase their ROI. It can be challenging to try out new ideas since personalizing content down to a single user is a daunting task. Digital marketing experts at Quantzig can assist companies in suggesting and implementing personalized marketing strategies.

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