Make your customer feel as if you are speaking directly to them
It’s no secret that personalization can deliver a significant return on investment (ROI). In fact, we’ve known for years. Yet here we are.
Despite the astounding numbers that show how impactful personalization can be for almost any type of business, some hesitation to embrace it remains. Whether that’s due to budget concerns, a lack of know-how, or simply just not having the time to implement, numerous companies are getting left behind while others use personalization to maximum benefit.
Convenient and cost-effective solutions do exist, such as properly leveraging first-party data, which makes the big question “What are you waiting for?” We’re hoping to dispel some of the unknowns surrounding personalization and use the numbers to show you how personalization can deliver results for your company.
What Is Personalization?
Personalization involves using data to increase your content relevancy to a specific user. These insights can be simple, such as basic demographic information, or more specific based on your browsing history, including your behavioral patterns, niche interest, and buying intent.
When you personalize your web experience, it makes your customer feel as if you are speaking directly to them.
Personalization engages users and increases revenue
They’ll think your content is catered specifically to their unique needs. And you know what? They’re right. It is.
But this is only true if you are implementing personalization into your digital marketing efforts. If you aren’t, your website and ads are a one-size-fits-all experience, rather than targeted content that is personalized to your customer’s unique needs.
Personalization creates stronger relationships with your customers, creates a better user experience, and increases conversion. It engages users and increases revenue. So, you can see how personalization gives you an edge. Now let’s look at some hard data around this effective approach.
How Personalization Delivers Significant ROI
When it comes to ROI, it’s all about the numbers, so we’re going to let the data do the talking. In its 2019 Personalization Development Study, Monetate declared that personalization has traction, and the numbers show this to be true.
Its study found that 77% of companies who are currently practicing personalization reported revenue growth in 2018 and 93% of businesses who describe their personalization as “advanced” reported revenue growth. Overall, 78% of businesses in North America reported getting a positive ROI from their personalization efforts.
Companies using data are 2.6 times more likely to have a significantly higher ROI than their competitors
The top industries include retail (79%), travel and hospitality (72%), insurance (70%), demonstrating personalization’s universal appeal.
While the question: “Should you use personalization?” is an easy “Yes!”, a better question might be “How?”. Breaking the data down further, Monetate found that those businesses with the greatest return on their personalization efforts (as much as 3x’s their investment) were those whose primary business objectives were based on long-term nurturing.
This means the businesses focused on the entire user journey, personalizing experiences along the way to optimize the user affinity and ultimately increase conversion. Companies with the highest ROI in user personalization are 50% more likely to focus on customer loyalty. By focusing your efforts on the customers your cost per sale goes down, and profits go up because you don’t have to rely on “new” customers (aka Acquisition Campaigns) to drive revenue.
Consumers Value Personalization
The ROI on personalization is so high because today’s consumer wants content/experiences to be catered to them. Not only that – they need it.
According to a study from SmarterHQ, 72% of consumers say they only engage with personalized messaging. Privacy be damned, they’re even willing to share their data in order to receive a more personalized experience.
According to a study from SmarterHQ, 72% of consumers say they only engage with personalized messaging
The personalized experience then leads to sales, confirmed by multiple studies. In one, 80% of consumers say they are more likely to make a purchase from a brand that provides personalization. In another, an astounding 91% of consumers say they are more likely to shop with brands that provide offers and recommendations that are relevant to them.
The Risks Of Not Using Personalization
That covers the good. Here’s the bad – take a look at what consumers are saying about companies that don’t use personalization.
Forty-two percent of consumers are annoyed when their content isn’t personalized (ADOBE STUDY) and 74% are frustrated when a shopping experience is impersonal (INSTAPAGE STUDY). Lastly, 63% of consumers say they will stop buying from brands that use poor personalization tactics. (SMART INSIGHT STUDY)
Summary
The numbers really do tell the whole story here. If you want to reach your best customers and build long, fruitful relationships, then you must utilize personalization to your advantage in your digital marketing efforts.
If you’re ready to let personalization go to work for your business, Fulcrum has an unmatched real-time personalization model that will help you stand out from your competition. You’ll meet your customers when they’re ready to buy with exactly what they want to see.
Tap into your first-party data like never before and see what Fulcrum can do for you today.
