What is Marketing Personalization and How Does it Work?

Business owners and marketers are talking increasingly about the idea of marketing personalization and how implementing strategies that support this new, one-to-one approach to marketing can help to differentiate their marketing campaigns and drive more revenue opportunities.

And while marketing personalization is seen by most professionals as highly-effective, the strategy is still woefully underutilized as many organizations search for the most powerful and cost-effective ways to implement it.

What is Marketing Personalization?

Marketing personalization is a strategy that focuses on building targeted initiatives and messages for delivery to an individual prospect or customer. This personalized strategy is implemented by leveraging the latest available digital marketing technologies combined with data gathering and analysis that enable message customization. While mass marketing is designed to create the broadest possible appeal, marketing personalization works on the individual level to create focused, targeted messaging.

Is Marketing Personalization Effective?

To give you a sense of how big a missed opportunity it can be to not implement a marketing personalization strategy, take a look at the following statistics:

• Businesses that create personalized web experiences are seeing an average 19% increase in sales. (MarketingProfs)

• More than 70% of companies have yet to personalize their websites (Dynamic Yield)

• Personalized marketing emails can expect roughly 30%% higher open rates and more than 01% higher click-through rates (Experian)

• Roughly 70% of companies don’t yet personalize email marketing messages (Experian)

In order for marketing personalization to be effective, a company must be able to collect as much personal information about a prospect or customer as possible. This data is then analyzed and leveraged to create personalized, targeted messages, offers, and recommendations designed to appeal to individual consumers based on their past interested and documented behaviors.

What are Chatbots and How Are They Used for Marketing Personalization?

Many marketers, customer support, and sales managers are hearing about the emergence of chatbots and the powerful benefits they can offer their departments in driving and managing customer and prospect communications.

Chatbots are software programs that are designed to simulate human communications through online chat. A well-designed chatbot leveraged for marketing purposes will have the ability to dialog with a customer or prospect to gain an understand of their wants and needs and guide them through a personalized and streamlined marketing experience driven by this two-way communication.

How Chatbots and Personalization Impact Marketing Strategies

If you are considering the use of chatbots to help drive your marketing personalization strategy, here are some statistics to support that idea:

• More than 50% of consumers now prefer to interact with a chatbot for customer service and to help with product or service selection (Source: Aspect)

• Roughly 60% of consumers believe that chatbots are here to stay (Source: Aspect)

• More than 50% of consumers are not looking to be entertained during the purchase process, they just want to be efficiently guided through the process (Source: LivePerson)

• More than 30% of consumers are not sure whether their most recent online chat experience was with a chatbot or a human (Source: PWC)

Are you interested to learn more about chatbots for marketing personalization? Contact us to discuss.