Should You Really Bother With Personalization?

If you weren’t a marketing professional, you’d probably find it hard to believe that there is a debate of sorts in rather large organizations about personalization in marketing. In many cases, it’s less of a debate than an absence of one — or serious consideration, or a plan to get there.

Database & CRMIf you weren’t a marketing professional, you’d probably find it hard to believe that there is a debate of sorts in rather large organizations about personalization in marketing. In many cases, it’s less of a debate than an absence of one — or serious consideration, or a plan to get there.

You’d probably say or think something such as, “It’s common sense … why wouldn’t they do it?!”

Yes, the great “unwashed” have high expectations of the brands that wish to share in their discretionary income.

When IBM’s Watson can carry on a conversation of sorts with Bob Dylan in a TV commercial, and beat a grandmaster in chess, why can’t it send a postcard reminding you to get your oil changed?

These all sound like reasonable expectations to the “Valued Customer,” as we’re referred to by the non-personalized brands we have all engaged with. Don’t they seem reasonable?

For the longest time, Amazon stopped sending “people who bought X also bought Y” emails. Granted, Amazon’s personalization is part of it’s “all of the above” strategy — the company literally invests in everything it sees value in.

Moving Beyond the Basics

Yet most organizations have limited dollars and are fixated on “covering the basics” in their outbound communication. As a result, personalization has been limited in the vast majority of cases. The low costs and high performance of emailing have kept many brands from investing in higher-value touches with consumers — even as the CRM waves hit ever higher crests.

Why? Personalization alone doesn’t add enough value. And the reason is that personalization without relevancy doesn’t work. The basics of personalization in email marketing have been around for years. The consumer is accustomed to it and, in some cases, may expect it.

Relevancy, however, is harder to come by.

“Thank you for your purchase, Mike” works. “Mike, to get the best performance from your new time-trial bike, try using Rock N Roll Gold oil to protect your chain from rust and dirt.” works better.

In order to accomplish this level of personalization and relevancy, you’d need to know a few things. You would need the dexterity with this data to get it into your communication easily. If you know I’ve purchased a time-trial bike, then you need to know about bicycles. This could be challenging for mass/big box retailers like Amazon or Jet. But consider that Amazon is already providing “video shorts” on the categories you spend time in — and obviously, the ideas in those videos fit perfectly with their inventory.

Relevancy can also mean things that personalization isn’t often used for. More often than not, personalization still means “insert variable here.” On the other hand, relevancy can mean very important things that shape and influence a customer relationship … like recognition.

Simple and Powerfully Effective

I’ve found that a simple “thank you” message to the most valuable customers a brand has, thanking them for being loyal, and choosing them ― even without an offer ― generated incremental sales upon open and in the following several days.

Think it doesn’t pay to show the customers you know them and appreciate them? Think that’s not relevant? Think again.

Yet, when was the last time you had any brand thank you? Brands I’ve spent tens of thousands of dollars with have provided not-so-much as an email’s-worth of recognition.

How about the “profitability problem” that comes with one-time buyers? Does your favorite brand thank you when you make that all-important first repeat purchase? These individuals are categorically more profitable, and materially more likely than “one-and-done” buyers to buy the brand again and again. A little recognition establishes the context of their relationship — and the fact that they even have one with the brand … goes a long way.

Personalization can be easy without being valuable to the customer. Relevancy can be more challenging, especially if you don’t have your data house in order. Relevancy requires a strategy — but relevancy works, big-time.

Putting Relevancy and Personalization Into Action

Some examples of relevancy in action …

  • Announcing a Sale in a category consumers bought in previously, when they “missed” an expected purchase
  • Social Proof — don’t just say it’s the best product, show them how many stars it was ranked and by how many people. Show them a review from someone most like them. This is more doable than many brands realize — and the “content” is simply … free.
  • Localize — Instead of promoting product, promote Gene Smith in the golfing department (to folks who bought golf equipment). Not only will the employee morale increase, your customers can be nudged into multichannel buying. Think that doesn’t make a difference? Multichannel buyers spend more and spend more often in virtually every category.
  • Product Recommendations are “old news” — but they still work. Don’t leave this out. But combine it with social proof and watch conversion climb.

Personalization is important, but not without building relevancy to an ever-greater level. Consider the simple fact that the less relevant your communications are with your customer, the less they’ll find your brand relevant … and irrelevancy is where brands go to wither and die.

The Bottom Line: Relevancy Is the Value in Personalization

The upside to personalizing can be real. While blanket, low-grade personalization may have become passé, an authentic dialog based on relevancy is an investable business strategy. This requires having your data, your strategy and your knowledge of the customer, and the numerous cohorts that undoubtedly exist in every business.

The bottom line is simple: Personalization without a workable strategy may not be a good business value, and therefore may not be warranted.

Delivering relevancy to your customer experience, however, is priceless.

 

Author: Mike Ferranti

Mike Ferranti is the founder and CEO at Endai Worldwide in New York City. In this blog, he plans to offer ideas and perspective that energize, stimulate and motivate performance through the lens of his nearly 20 years of data, technology and marketing experience. Mike draws upon the logical, cultural and subject matter expertise in digital and data-driven marketing—with an occasional parallel between business performance and athletic performance.

One thought on “Should You Really Bother With Personalization?”

  1. Nice article, and a good reminder for copywriters. It’s not so much “Should you bother with personalization,” as “How should you use personalization?” Relevancy is the key, and this is true for how writers incorporate intelligence from research and data assets. Not everything you learn about your target needs to go into your messaging.

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