The power of personalization isn’t exactly a marketing secret. It’s long been known that unique interactions with customers make for better business. According to McKinsey & Company, targeted communications that are relevant and useful can drive revenue growth by 10 to 30% (not to mention the loyalty it inspires).
What is new is how brands are pushing the boundaries of personalization. %FIRSTNAME% simply won’t cut it anymore. You must dive deeper into the data (and make sure you’re collecting the data you need) to create custom moments that show your customers you see and know them.
Give them what they want
It’s simple but effective. Using customer data to ensure customers receive promotions and discounts for items they actually buy can make a world of difference. The concept may not sound exactly outside-of-the-box, but brands are finding ways to take this tried-and-true tactic to new heights with some solid segmentation and a little imagination.
Starbucks does this well in a number of ways: menu challenges featuring a mix of frequent purchases (with the occasional recommendation of new menu items), personal double-star days, and even frequent surveys to check in (and hand out a few extra stars). By offering customers opportunities to engage with Starbucks simply by purchasing the same items they always have, the coffee giant motivates more purchases and inspires loyalty.
Stay one step ahead with predictive modeling
Sometimes tastes change, which is when being able to see the future really comes in handy. While they’re no crystal ball, predictive models can help you figure out what your customers want before they want it. Few brands do this better than Amazon, which constantly analyzes the behavior of its customers to find something they didn’t even know they needed. Spotify and Netflix also excel at reading customers’ minds (with some help from algorithms).
Anticipating the tastes and needs of customers isn’t the future of marketing — it’s the now. Brands need platforms that allow them to put these predictive/behavioral models in place. If you’re not looking into the future with helpful, personal engagement, your customers just might leave you in their past.
Find the right FOMO
The fear of missing out (FOMO) is real. In the age of social media, no one wants to miss out on the latest and greatest. Hitting the right FOMO notes for customers can be a serious motivator.
Old Navy’s email strategy dives right into this concept, pairing purchase data with personalized offers to create urgency around products customers have shown interest in previously. Remember that sweater you bought last fall? So does Old Navy. That’s why you’re sure to get an email letting you know that sweater season is just around the corner and the warm layer is 10% off — but only for this weekend. This kind of personalization lets customers know that you know them and drives urgency to motivate future purchases — a win-win.
Treating each of your customers as an individual isn’t just nice manners, it’s good business. Customers expect you to know them and show it in every communication. To deliver on these expectations, brands need marketing tech with strong segmentation, predictive modeling, and more.
Ready to get up close and personal with your customers? Contact us today.