because if content or ads are not personal, it is usually extraneous!
It’s no surprise that people hate seeing ads. And when they see it, they expect to see content or ads that are related and extremely personalized to their needs. To state a fact, 73% of consumers prefer to do business with brands that use personal information to make their shopping experiences more relevant (Source).
By delivering relevant and suitable ad experiences across customer journey, brands not only reduce unpredictable customer behavior but also increase the rate of traffic, engagement, conversion, and revenue.
But despite acknowledging its undoubted relevance, most of the marketers and brands fail in delivering effective personalized experiences to their customers.
Reasons for Not Personalization
According to Demand Metric, the two biggest reasons keeping the marketers away from personalizing content are “not having the bandwidth or resources” and “don’t have the required technology.”
Despite the troubles faced in personalization, 77% of marketers still believe that real-time personalization is vital. (Source).
- 95% of B2B organizations make some attempt to segment their content based on their audience. (Source)
- 35% of Amazon’s revenue is generated by its recommendation engine. (Source)
- 75% of users select movies based on Netflix’s recommendations. (Source)
- 86% of people say personalization plays a role in their buying decisions, with customers who clicked on personalization elements 125% more likely to buy – (Infosys)
Dynamic Personalization: A Game Changer
Dynamic personalization involves understanding your consumer behavior across different channels and then further optimizing the consumer’s entire conversion journey. It has the power to increase conversions by turning the customer’s journey intuitive. The advanced personalization techniques like segmentation, collaborative filtering, user modeling and profiling, content-based systems, hybrid systems and machine learning methods, helps to eliminate the amount of unnecessary and redundant information delivered to the visitors, consequently eliminating the friction and/or presenting the users with the logical next step in their buying journey.
How Does It Work?
Dynamic personalization involves using technology for creating different, pre-determined content variations based on the prospects context, behavior, and stage of the buying cycle. There are two types of personalization, Dynamic Website Personalization (DWP) and Dynamic Creative Optimization (DCO).
The advanced algorithm is used in both DWP and DCO to leverage the consumer data and determine the best form of content to deliver to the audience. The content is typically based on some on-site and off-site factors like:
-Demographic – Age, gender, language, race, etc.
-Psychographic – Habits, attitudes, interests, values, etc.
-Geolocation – Where they live or where they are at the point of contact with the content
-Context – The situation\circumstance in which they view content
-Behavior – Interaction with and reaction to your content across all channels, both historically and in real time
-Stage of the buying cycle – Still researching or ready to buy
-Device – Content viewed on mobile, desktop, or tablet?
Personalize the Customer Journey
Having the right amount of traffic, and the wish to improve KPIs is not enough to ensure high rates of conversion. Personalization of the customer’s journey is what comes next when looking at the different levels where personalization can be applied.
1. Collaborative filtering: Collaborative Filtering represents one of the broadly adopted strategies to build recommendation engines. This is basically modifying the shopping trip based on the crowd logic, i.e. best sellers. Collaborative filtering essentially depends on the hypothesis that public follows the crowd, directed by social rules, and strengthened by the consent of their peers. Highlighting the “best-seller” and “trending items” is done not just to give priority to the most popular items that would probably convert, but even to encourage customers that their decision to buy is approved by the consensus of the majority.
2. Segmentation: Segmentation involves targeting individuals fitting into a bigger group defined by similar traits (e.g. demographic, device type or geo-location). Incorporating simple changes, like pre-setting your website’s language configuration for IP’s belonging to a specific country.
3. One-to-one Personalization: The third level of personalization involves tailoring the e-commerce experience to different shoppers. “Recommendations for you” is one perfect example of one-to-one personalization. This can be easily done based on instant behavioral changes or customized customer profiles, built up over time using historical data.
4. Enhancing site search: Search with time has become one of the most prominent elements of navigation. This has further increased the demand of having a high-quality site search option on your website, as it can have a huge impact on your conversion rates.
5. Call-to-actions: Call to action buttons are immensely important for any business website, this is because these are direct points of connection between the users and the business. Customers’ interactions with call to action forms can lead to conversions, subscriptions, form submissions, etc. Dynamic CTAs can streamline the customer journey from first interaction to conversion.
Personalization is one trend that is totally relevant at every part of the sales funnel. This includes customer acquisition, conversion, retention, and finally, delight.
Optimize For The Right Creative Combination
Getting the best results for a personalized customer’s journey involves a combination of deep data analysis and automation, bringing the ability to correctly predict customer’s intent and learn on the go — regulating experiences in actual time, down to the millisecond.
Cognitive science makes personalization easy to design and deliver content which is highly customized and creative. The algorithm used should be able to frequently adjust the content based on consumer behavior and their points of interaction. This combination of delivering the right content, to the right people, on the right channel, at the right time helps to drive engagement and increase ROI.
The Role of Cuberoot DMP in Personalization
Cuberoot Data Management Platform is a key tool and enabler that makes data more accessible for the marketers. This platform works to collect information from internal and external sources, aiding the marketers to tailor it and use it specifically for every individual customer.
Cuberoot gathers cross-channel customer information that combines both offline and online data to create a unified customer profile. This assures that marketing budgets are being utilized in an efficient way and advertisements are not served to the same people all over again.
DMPs are essential for creating a wave of data which is actionable through multiple channels, whether the web, email, tablet, mobile, etc. These platforms can help to increase positive outcome rates, realize deeper customer understanding, improve media effectiveness, reduce wasted ad spend, and take more data-driven decisions.
While 68% of marketing firms quote personalization as their top priority, 53% lack the technology to personalize. Manual strategies fail to compete with the technological advancement and can hold your growth back.
With Dynamic Personalization, it becomes much easier to understand and predict your customers’ intent, identify your target audience and deliver dynamic, individual content in much more creative ways. This help to improve engagement and increase results. When you understand and tune yourself to your customer’s actions in real time, you can easily direct your prospective customers down to the route of conversion and further attain your business goals faster.