You may already know that market segmentation is crucial to effective marketing.
Introduction to Personalization
But did you know that personalization is becoming increasingly important? Personalization is more than just about recognizing consumers as part of market segments; it is also about recognizing them as individuals, and treating them as such. “Consumers have been pretty consistent and clear in their feedback, the way to avoid alienating them is to give them what they want — personalized, relevant content using their data in a responsible and transparent way,” explains Larry Drebes, CEO of Janrain. If your brand isn’t already making use of personalized marketing tactics, now is the time to start doing so.
The importance of relevant content
Seventy-four percent of consumers become frustrated when website content is not relevant to their interests. A recent study found that three out of four consumers become frustrated when content doesn’t reflect their interests. A frustrated consumer is never good for business, and if your content isn’t resonating with your target audience, engagement rates will only plummet. The bottom line? Personalization is an excellent way to boost engagement and encourage consumers to interact with your content. A MindFire study of 650 multi-channel marketing campaigns found that personalized campaigns consistently generated a higher response rate from recipients.
The power of personalized emails
Personalized emails dramatically improve both click-through rates and conversion rates. According to a study conducted by Aberdeen, personalized emails boost click-through rates by an impressive 14 percent, and have the ability to improve conversion rates by 10 percent. Furthermore, emails with personalized subject lines enjoy a 26 percent higher open rate than email subject lines that are not personalized. The more effectively content can resonate with consumers’ preferences and interests, the more likely consumers are to engage with that particular type of content — resulting in a boost in conversion and click-through rates. On the other hand, the less your content resonates, the more likely you are to be booted from inboxes. Fifty-six percent of consumers report unsubscribing from an email subscription because content was no longer relevant.
Calls-to-action and conversion
User-target calls-to-action boast a 42 percent higher view-to-submission rate. According to a study of more than 93,000 calls-to-action conducted by HubSpot, user-target calls-to-action (those that specifically target specific users) had a 42 percent higher view-to-submission rate over the course of twelve months versus corresponding calls-to-action that were the same for all visitors.
Personalization increases sales
According to e-consultancy service Monetate, marketers who tailor web experience to individual users see close to a 19 percent increase in sales on average, while nurturing leads with personalized content (as opposed to generic content) generates a 20 percent increase in sales opportunities. Furthermore, research also shows that consumers are more likely to make purchases from brands who make use of personalization in their marketing strategies. Another study found that 40 percent of consumers purchase more from retailers who personalize the shopping experience across digital channels.
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