Common Types Of Personalization with Case Studies
Personalized email marketing and dynamic content personalization are some of the most common types of personalized marketing. Personalized email marketing is used by 78% of marketers and remains the most used channel in personalized marketing.
1. Dynamic Content Personalization
- Dynamic personalization is content that changes based on the data, in-session behaviour and preferences of individuals. The content adapts to the customers buying behaviours and streamlines their journeys to improve experience and conversion efficiency.
- Demographics, behaviours, device, and geo-location are the information used to create an algorithm of the customers buying habits and preferences.
- Dynamic content personalization can be most effectively used in a browse abandonment or cart abandonment campaign by using tailored emails to automatically reflect the products the customer left in the cart or viewed and didn’t buy.
- Brands aiming to provide delightful customer service at any point of the purchaser’s journey can exploit personalization of complex information to provide consumers with customized experiences.
- Using dynamic personalization streamlines and saves time by creating an automatic algorithm that serves customers with what exactly they are looking for, thereby optimizing the customer’s journey and increase conversion rate.
- According to research, “74% of online consumers get frustrated with websites when content such as ads, offers, and promotions appear that have nothing to do with their interests or shopping needs”. Dynamic personalization avoids such scenarios by ensuring that only materials or contents that interest the customers are presented which then helps to build brand trust.
- Dynamic personalization help brands achieve more sales.
- Netflix uses different personalization tactics to engage and retain customers, and the company is regarded as a pioneer in dynamic content personalization.
- Netflix uses an advance product recommendation engine to tailor movie recommendations to customers; categories are created for each title group, and personalized titles are showcased to users based on their previous viewing history.
- The use of dynamic personalization by Netflix has helped customers navigate the 7,000+ movies and shows available.
2. Personalized Email Marketing
- Personalized email marketing is the use of users personal information to create more targeted emails, giving the individual consumer attention and dramatically increases the email marketing metrics.
- Information such as the users first name, the last product they bought, location, gender is leveraged to provide personalized emails.
- Personalized email marketing is effectively used in product recommendations, and to decrease purchase abandonment.
- Personalized email marketing can be used to increase customer engagement. According to eConsultancy, 74% of marketers opted for personalization of emails.
- According to research by Rich Relevance, brands can increase revenue by 5.7 times by using personalized emails.
- Studies found that personalized email marketing will improve open and click-through rates, have a tangible effect on ROI and are 26% more likely to be opened than those without personalization.
- Personalized emails can increase sales by 20%.
- Using personalization in email marketing can help retain customers by re-engaging inactive customers.
- According to Experian, personalized emails deliver six times higher transaction rates.
- Easyjet used a combination of images, links, dynamic contents, for its personalized email marketing campaign on the company’s 20th anniversary to its customers.
- Each customer received a unique email with personalized content that highlighted everywhere they’d travelled with Easyjet in the past 20 years and recommendations for future travel plans based on past preferences.
- The company reported an open rate of 100% compared to their regular newsletters without personalization.
Personalized Marketing Perceptions
Customer perceptions of personalized marketing show that while 72% of consumers would only engage brands that personalized their interests, 86% of consumers complain about their data privacy. While millennials are Gen Z are more trusting of personalized marketing messages, the older generations are less trusting.
Personalized Marketing (Customer Perceptions)
- According to a study by SmarterHQ, “72% of consumers say they now only engage with marketing messages that personalized and tailored to their interests.” However, 86% of consumers complain about their data privacy. This concern is because of data breaches and ‘shadowing ads’ that trail people around during internet surfing after they had looked for or bought a specific product.
- Millennials and Gen Z are more trusting of personalized marketing messages than Baby Boomers and Gen X. The former is 47% more trusting than the latter.
- The study found that consumers are excited to give away personal information to companies because it will enhance their future communications with a brand. Particular information in this context includes “the products they have purchased, the categories they’ve looked at on a site, how long since they last visited the website, and their email address.”
- However, consumers frown at the collection of sensitive information by companies, unless “they voluntarily provided this information.” Particular information in this context includes their names and mobile numbers.
- Amazon ranks top among the most trusted retailers in consumer data. 48% of surveyed consumers trust this international retailer more than banks, even though the latter has stricter regulations for consumer data. Social media companies are the least trusted (6.3%) with consumer data.
- According to the study, “some 51% of consumers say that the best way for brands to contact them is via email.” Social media follows with 25%, while the least favorite means for brands to interact with consumers are “mobile push notifications (3%) and phone calls (2%).” The customer perception with the latter is that it looks as if brands are trying to force communication on them, rather than making it by choice.
- Many consumers find personalized marketing ‘creepy’, particularly in push notifications. The report by SmarterHQ puts push notifications at 74% ‘creepier’ than other means of communication in personalized marketing. Consumers feel this channel of personalized marketing makes them feel stalked.
- There are negative effects associated with these creep tactics. According to the study, “63% of consumers saying they will stop buying from brands who use poor personalization tactics.” While 68% will share their ‘creepy’ brand experience with loved ones, 41% will give the brand a negative review.
- However, for Gen Z consumers, “push notifications are 68% less creepy than they are for other generations.”
Customer Perceptions During Shopping
- There is the drive for personalization among consumers during shopping, even though “79% of survey respondents say that companies know too much about them.”
- According to a study by SmarterHQ, “90% of consumers will share their behavioral data with brands if it means a cheaper and easier shopping experience.”
- The study further reveals that “80% of self-classified frequent shoppers will only shop with brands who personalize their experience.”
- For the personalized shopping experience, there is more than a 9% likelihood that women will share personal data than men.
- Customer perceptions during shopping usually border around discounts on products. The study showed that 90% of respondents opt for discounts as the reason for sharing personal details. This usually comes up in “the form of an email sign-up, with a good deal of e-commerce sites offering an immediate discount in return for a newsletter sign-up.”
- Another consumer perception during shopping for personalized marketing is the ease-of-use; as 87% of respondents choose this as a factor for online shopping.
- The other reason consumers opt for personalized marketing is to “get back-in-stock alerts for products they are interested in purchasing.” Unlike non-frequent shoppers, frequent shopping consumers find this personalized marketing to be 25% more resourceful.
- Customer perceptions of personalized marketing during shopping lies in “a smoother, easier, and cheaper shopping experience offering.”
Customer Perceptions During Streaming Experiences
- Although customer perceptions of personalized marketing during streaming experiences border on the need for consumers to “choose great content on their terms,” but the key to “direct-to-consumer streaming services is overall user experience.”
- According to PwC’s Mark McCaffrey, user experience is as important as content in customer perceptions of personalized marketing during streaming experiences. He went further to state that “the quality of user experience drives overall retention.”
- Industry leaders in the video streaming industry, such as Netflix, Hulu, and Amazon Prime Video, focus on user experience to captivate customers’ perception of personalized marketing.
- According to a PwC-commissioned survey, consumers were asked why a particular subscription-based video-on-demand (SVOD) was their favorite. Among the top three criteria, 33% of respondents went for ‘ease of use’ and 26% went for ‘reliability.’ The last top criterion was ‘content-related factors.’
- The survey also shows how content matters in customer perception of personalized marketing during streaming experiences. While 36% of respondents subscribed to a show because of its exclusivity in service delivery, price (low monthly cost) influenced the decision of 65% of respondents and 35% craved for content with ‘little to no ads.’
- Some 25% would sign-up for an on-demand streaming experience where the interface is easy to use, while 24% would sign up for “binge-able full seasons of TV shows released all at once.”
- For customer perception of personalized marketing during streaming experiences, usability and experience are more significant for customer perception than “loyalty reward programs like monthly discounts on subscriptions or free trials.”
- Another customer perception of personalized marketing during streaming experiences is customer service contact. This is an “emotionally charged component of the consumer experience that has the potential to influence an individual’s global perceptions of companies.”
Variations in Perceptions
- One customer perception for purchases driven by emotion (clothing) and functional (household products) border around discounts on products. As mentioned above, the study by SmarterHQ showed that 90% of respondents opt for discounts as the reason for sharing personal details.
- However, discount plays little to nothing in customer perception for purchases driven by emotion (music, movie, TV show). Usability and experience are more significant for customer perception in this context.
To adequately describe customer perceptions of personalized marketing, we evaluated a white paper on privacy and personalization by SmarterHQ and a PwC-commissioned survey. The latter surveyed “a nationally representative sample of 1,000 U.S. consumers 18-64 who have access to the internet.” Both reports became available in 2019.
Through the report by SmarterHQ, we described customer perceptions of personalized marketing in terms of the advantages and fears, particularly on privacy. However, we highlighted ways to allay these fears by providing hard facts on customers’ likes and dislikes in personalized marketing. We also discussed the customer’s perceptions during shopping and streaming experiences, along with varied perceptions of emotional and functional products or services.
For further study on customer perceptions of personalized marketing, we recommend these works — bachelor thesis and online customer behavior.
Personalization Success Stories
Sainsbury, Brainshark, and Cadbury are three brands that used personalized marketing strategies to engage customers. Cadbury marketing effort was targeted towards Indian customers; Sainsbury’s marketing campaign was launched in the U.K.
- Brainshark used a third-party vendor to provide targeted personalized messages to help convert their freemium users into paying customers.
- The company used product analytics to identify the number of people who signed up for free products, users who registered without uploading a presentation and the users who weren’t sharing uploaded presentations.
- Brainshark used ads, pop-ups, and messaging in the product page of their website to communicate with existing customers. The messages offered tips and guidance to help users automate their accounts and consider trying their other free app.
- In the messages, Brainshark included action calls for webinars, whitepapers and product updates with messages on the key advantages of using Brainshark’s paid products.
- Using the personalized marketing strategy, Brainshark increased sales by 15%.
- Brainshark’s sales pipeline growth reached $1.1 million.
- There was over 150% increase in free trial sign-ups for Brainshark’s enterprise products.
- Cadbury launched a social video campaign using Idomoo’s Personalized Video as a Service platform to raise brand awareness and increase market penetration for its Cadbury Glow chocolate in India.
- The campaign enabled customers to make a personalized video using images and names taken from their profile on Facebook. Users could connect their Facebook profile and enter the gift recipient’s phone number using the Cadbury Glow landing page.
- The recipient could then view the video either through a QR code or entering their phone number on the Cadbury Glow page when they receive a box of Glow chocolate.
- Cadbury reached a 65% CRT with campaign beneficiaries and a 33% conversion rate of viewers who completed a corresponding promotional form.
- UK retailer Sainsbury used location data and customer information to provide tailored deals to customers in and around the shop through their mobile phones.
- “Micro-location data was used by the company to identify when a customer is outside, entering or walking around a store to trigger deals”. Time and shop data was used to ensure that the deals were appropriate for the time of day and the current shop inventory.
- Sainsbury partnered with Aimia to develop an iOS mobile app, SmartOffers, install 90 beacons and develop a series of one-second surveys as customers left a store to understand customer satisfaction levels.