What is personalized marketing? Meaning, benefits, example measures, and methods
Personalized marketing is a marketing method that provides messages, products, and services that are most suited to each customer’s attributes, needs, behavior history, and preferences.
What is personalized marketing?
Personalized marketing does not approach all customers with the same content, but rather understands customer needs based on personal attributes, interests, purchasing behavior history, etc., and provides the optimal information and services to each customer. It is to provide.
The English word “personalize” means “to make (goods, services, etc.) personalized,” and in marketing, it means to provide optimal products, services, and information tailored to each customer.
Background to the importance of personalized marketing
Evolution of digital technology
With the development of the Internet and mobile technology, customers are increasingly engaging in personal online activities, generating a wide variety of digital data. Based on this data, companies can now understand customer behaviour and preferences in more detail, making it possible to use this information to conduct personalized marketing.
Diversification of customer needs
Nowadays, with the advancement of IT technology and the spread of the Internet, customers can now obtain information themselves. As a result, needs are diversifying, and traditional mass marketing, which uniformly promotes the same information and products to customers, has become difficult to meet customer expectations. Therefore, companies are required to take a personalized approach to meet the individual needs of their customers.
Intensifying competition
With more and more companies entering the market in many industries and market saturation, it is becoming increasingly difficult to acquire and retain new customers. Therefore, a personalized customer experience is the key to differentiating yourself from your competitors. By providing individually optimized customer experiences loyalty Acquiring competitiveness is an effective means of maintaining competitiveness.
Advances in data analysis
Advances in technology such as big data and artificial intelligence (AI) have made it possible for companies to collect and analyze customer data and use that data to derive insights into latent needs more effectively. This has made it possible to understand customer behavior patterns and preferences more accurately, making it easier to develop personalized marketing strategies.
Benefits of personalized marketing
Increase in CV
A personalized approach can increase customer purchase intent. By providing products and information that match the needs of each customer at the optimal timing and promoting purchasing behavior, Conversion (CV) becomes easier to achieve.
Approaching potential customers
By being able to understand customer insights, Potential customers also the possibility that could lead an approach delivering information to customers at a stage when they are not yet aware of their own needs and understanding their latent needs, it is possible to turn potential customers into prospective customers and lead to the acquisition of new customers. Although it often does not lead to immediate sales, it can have long-term effects.
Improving brand loyalty
Personalized marketing allows customers to receive information and offers tailored to their needs and preferences, or experiences that exceed their expectations. This provides customers with a more satisfying experience and increases brand loyalty.
Build interactive relationships with customers.
Personalized content and offers are more likely to attract customer attention. It makes it easier for customers to find information that matches their interests and preferences, increasing brand engagement and engagement and building interactive relationships with customers.
Improving brand credibility and recognition
By continuing to provide personalized communications and services, you can demonstrate your sincerity and interest in your customers. When customers feel that they are cared for, they feel more familiar with and trust the brand, which in turn builds a positive brand image. Furthermore, it is expected that recognition will increase through favorable word of mouth and information dissemination.
Examples and methods of personalized marketing measures
recommend
Recommendations are “recommendations” that you often see on websites and apps. Recommend products and services tailored to each customer based on the customer’s past purchase and browsing history. A typical example is Amazon’s “recommended products” function.
email marketing.
Email marketing involves sending personalized emails based on data such as customer attributes, area of residence, purchase history, and interests. This makes it possible to provide only the information and benefits that are of interest to the customer. Also, send emails at times that suit each customer.
Web content
There is also a way to dynamically change content on a website to match customer attributes and behavior. Examples include switching the display language depending on the customer’s region or language or displaying relevant content based on the customer’s past behavior.
Social media ad targeting
By utilizing data from social media, where personal information is often registered, it is possible to conduct highly accurate targeting based on customer attributes and interests when advertising. This makes it possible to deliver effective advertising to specific customer segments.
chatbot
Chatbots installed on websites and apps create conversation flows tailored to attributes based on past interactions and provide appropriate support. Because it is based on the customer’s questions and past behavior, it is possible to generate responses tailored to each customer.
Difference between customization and recommendations
Personalized marketing is a method by which companies optimize the content they provide according to the needs of each customer. On the other hand, customization means that customers themselves adjust the information, products, and services they want to meet their needs. As mentioned above, “recommendation” means “recommendation,” and means that a company presents highly relevant information, products, and services based on customer information and purchase history.