In a world where consumers have endless options, personalization is one of the most effective ways for brands to differentiate from their competitors. Personalization is the process of tailoring messaging and experiences to the unique needs and preferences of individual consumers. This creates a sense of understanding and appreciation leading to increased engagement and loyalty.

Getting it Done

Both first party and third-party data sources are used to drive personalized communications. First-party data is data that a brand collects directly from their customers, including purchasing behavior and website engagement. Third-party data is data includes things like household income or affinities for specific product categories. Combining the two sources provides brands with a more complete picture of their customer database and opportunities for richer personalization.

These data allow brands to model behaviors, interests, and needs at the consumer level and generate targeted content that includes the specific products and information their customers want to see rendered in a variety of both digital and traditional communication channels. Linking data with content creation and distribution in this way allows for richer and more meaningful interactions that increase consumer attention.

The Payoff

According to a report by Epsilon, 80% of consumers are more likely to do business with a company if it offers personalized experiences.

Personalization also leads to increased customer loyalty. A study by Infosys found that 86% of consumers said that personalization plays a role in their purchasing decisions.

Personalization in Action

The popular footwear and apparel brand New Balance leans heavily into personalized communications, creating both digital and printed catalogs that featured artfully displayed product content and offers based on demographics, preferences, and buying history. A study among e-commerce and retail brands revealed that personalized catalogs drove nearly a 12% increase in response among recipients when compared to a control group. Recipients of personalized catalogs spent an average of 24 seconds with digital versions and recipients of both digital and printed versions of the catalog outspent the control group by 2x.

Ultimately, marketers who prioritize personalization in their communications will be rewarded for their ability to anticipate customer needs with more loyal and engaged customers.