Why Personalization is Key to Boosting Your Digital Marketing Efforts

In today’s oversaturated market, customers hate to see those boring generic ads that keep popping up on their screens. What customers these days actually like more is personalized interactions in the digital world.  In fact, a report by McKinsey Study mentions that 71% of consumers expect brands to deliver personalized interaction based on their interests. Also, 76% of consumers get frustrated when this doesn’t happen. This clearly shows that the value of personalization in digital marketing is increasing. Businesses that prioritize personalization in their digital marketing efforts can generate better revenue growth than their peers. So if your digital marketing strategy lacks the essential touch of personalization, it is the right time to start doing that. Without delivering a personalized experience to your audience, you can’t survive for long.

So, this blog post is all about personalization and how it can take your digital marketing game to the next level.

Personalization Matters in Digital Marketing

Personalization in digital marketing helps businesses to deliver to their customers exactly what they want. Businesses can focus on creating tailored solutions as per the preferences and needs of each customer. Personalization builds a strong connection between a brand and its customers.

This connection drives tons of benefits for a business such as:

• Customer retention
• Better engagement
• Higher conversion and sales
• Maximum ROI
• Improved brand value and trust

Personalization matters on the customer side too. In a customer’s POV, personalization makes them feel special and understood. Customers tend to respond more positively to brands that know their expectations. Customers feel satisfied when their expectations are met with a personalized touch.

Personalization is also important in creating that human connection between technology and customers. This connection resonates more with the audience making them take action in our favour.

How Personalization Boosts Your Digital Marketing Efforts

Personalization has a lot of potential for grabbing an audience and converting them into potential customers. When done right, personalization makes your time, effort, and money invested in digital marketing worthwhile.

Let’s have a look at how personalization can improve your digital marketing efforts and contribute to the rise of your business growth.

Improves User Experience

The main objective behind personalization itself is to improve user experience. Customers feel satisfied with personalized experiences, and that is what most businesses must aim to deliver. You can provide customers with new recommendations, suggest useful products similar to their previous purchases, and offer discounts on their abandoned carts. All these efforts contribute to increasing customer satisfaction.

Satisfied customers also act as a source of word-of-mouth marketing. People often spread the word about products or services they like. In short, customers who get a personalized experience promote your brand to other people who seek the same thing.

Increases Conversion Rates

Conversion rates are the key performance indicators for the success of your business. And personalization is an effective tool to increase conversion rates. When you serve people with personalized recommendations of your product or service, they show more interest in them. If any of these recommendations matches the needs of a customer, they proceed to make a purchase. This purchase is a positive conversion for you.

This is one of several ways in which personalization contributes to increasing conversion rates. Personalization is all about motivating customers to purchase by making them feel that the product or service is specially made for them.

Boosts Repeat Purchases

Personalization in digital marketing is a great source to boost repeat purchases. Personalizing the buying experience of any new customer often makes them come back to your brand. Even if they don’t, you can motivate them to make a repurchase with your brand by offering them special attention (as they feel). Provide them with exclusive discounts, loyalty program benefits, or limited-period deals to bring them back.

A recent study mentions that 49% of customers make repeat purchases from brands that offer personalized experiences. Also, businesses have experienced an average increase of 34% in the total order value of repeat purchases.

Improves Customer Loyalty

Every business wants its customers to remain loyal and to always choose its products over those of any other competitor. Loyal customers are the key to long-term success for businesses in digital marketing. Customer loyalty contributes to your brand image and value which is important in grabbing new customers. Also, loyal customers make most of the repeat purchases increasing the ROI. Most importantly, loyal customers help in decreasing the market presence of your competitors.

One way of building customer loyalty by personalization is to focus on the customer’s journey. This begins with understanding their pain points, identifying their preferences, and then recommending your product or service as an ideal solution to their problem.

Gives Advantage Over Competitors

Every industry has a highly competitive market these days. With so many businesses trying to grab the same audience simultaneously, it is important to stand out. This is where personalization helps the most— to get an advantage over competitors. Brands that use personalization in their digital marketing strategy attract more audience than their peers. A survey also reports that 80% of customers prefer to buy from brands that offer personalized experiences.

Thus, using personalization is not only effective in attracting customers but also in diverting them away from your competitors. It is an effective way to dominate the market in your industry by building a large customer base.

Improves Brand Image

Today’s digital landscape is a clutter of fake and genuine businesses. It is difficult for customers to differentiate between a brand that is really helping them or just tricking them to make money. This is where brand image comes into play. Your brand image is the hallmark of your authenticity among the audience. Customers only believe in businesses that have good brand image and reputation. Personalization helps in building your brand image too.

Customers who are satisfied with your brand’s personalized experiences share reviews and testimonials about your product or service. Posting such reviews on social media and other platforms shows that people trust your brand.

Final Thoughts

Personalization matters more than ever in digital marketing. With the surge in the number of businesses coming online, it has become a necessity to incorporate personalization in your digital marketing strategy to stand out from the competition.

Consumers expect brands to deliver personalized experiences. Failing to do so may lead to losses and a decline in your business growth. So it is advised to embrace the power of personalization in your digital marketing efforts.

Personalization is not only a need of customers, it is their demand. As a customer-centric business, it is your responsibility to meet this demand by doing your best!