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Article | August 14, 2020
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Article | July 14, 2021
In this article, Nate Burke, CEO of Diginius, an expert provider of digital marketing solutions for ecommerce and online businesses, explores how brands can boost affinity through customisation and personalisation tactics in the digital age.
How many of us remember walking into a holiday gift shop when younger (and before a global pandemic put a stop to the H word), and eagerly searching for a fridge magnet, mug or pencil inscribed with our name?
Personalisation is a tactic brands and businesses have been using for years to hook us into their offerings. The idea is, as consumers, we forge stronger attachments to products that appear to have been created for or tailored to us, personally. For businesses, encouraging these deep connections with customers results in loyalty and greater lifetime value.
In theory, the formula is simple. But in reality, success requires so much more than printing a name on an everyday household object. Instead, brands must allocate large amounts of resources to really understanding their customers, and then develop offerings that suit.
Fortunately, the internet provides a more efficient and effective way to personalise offerings on a mass level. And as a result, we’ve seen the rise of businesses, including Moonpig, Getting Personal and Funky Pigeon, which offer customers a service to personalise common gift items, in order to create something with greater meaning and significance for a loved one.
However, in this day and age, customers have, what seems like, an unlimited choice of options when it comes to personalised products - think those mentioned above, as well as etsy, Not on the Highstreet and the numerous photo printing and engraving services offered by the likes of Boots, Asda, H.Samuel, Next and so many others. Therefore, for personalisation to really be a differentiating factor for your brand, tailoring must go far beyond the surface level of a product.
Everything from the brand experience, content and functionality of the final product or service needs to be designed and developed with each individual end user in mind.
But again, the internet offers its hand in this sense too. Essentially, businesses with digital offerings also have data and insight at their fingertips, which can help them to better understand who their customers are and what it is they want. With this information, brands can begin to personalise the way in which they communicate, interact with and cater to their customers in order to evoke a greater feeling of connectivity.
For example, personalised digital marketing tactics, such as including first name fields in email campaigns, have proven to generate greater click through rates than those without. Clearly, tailoring this small part of an email by ensuring such information is collected and stored in your address database can have a significant impact on the success of your activity, soon outweighing any additional work or effort required to implement the change.
Similarly, pay per click advertising (PPC) can benefit from personalisation, particularly if ads are targeted using users' individual preferences and characteristics. While PPC management can be a time-consuming task alone, and personalisation only adding to the load, there is a strong case for the use of a software solution that can help you collect and analyse data, and then automate activity accordingly. As well as saving time, the marketing tactic also becomes much more efficient, by lessening the budget being wasted on ineffective leads. With ads more likely to be shown to users with a greater chance of clicking, as their data suggests a strong interest in your offering, there is opportunity to improve click to conversion rates, too.
Again, this all sounds good in theory, but a data-centric approach presents further challenges in terms of knowing what information to collect, and then interpreting it in a way that is accurate and useful to the business. For instance, businesses operating across various sales channels may face difficulty collecting data that is representative of its multiple customer segments. Its online customers are likely to be different to its in-store ones, and so an offering that is personalised to the latter, is not guaranteed to feel equally as customised to the former. Or vice versa.
This is another area in which technology can help. Platforms, such as VTEX, offer businesses a way to collect and centralise data across all channels. With all this information in one place, it is possible to draw meaningful and accurate insights to inform personalisation decisions.
However, personalisation, in its fundamental form, is all about being human and emotive in your approach. It comes down to understanding the intrinsic values of your customers, and placing these at the centre of your offering to develop meaningful connections. Data and technology, therefore, can only help so much. Alongside this, there needs to be human input, which can come from your experience and expertise of your market and consumers.
For example, in more recent years, we’ve seen brands give more thought to mass marketing opportunities on special days and events, such as Father’s Day. While data and technology can help you create a personalised email to promote gift ideas for an event which the majority will be celebrating, a human approach will tell you that many of your customers may prefer not to see messages associated with the occasion. As a result, we see pre-campaign eshots that give warning and opportunity to opt out of communications associated with the event.
By combining both technology and human instinct in this way, offerings become that much more personal and effective at boosting brand affinity. And that is where there is a real sweet spot when it comes to differentiating your personalised offer from the next, especially as the ecommerce market becomes ever more saturated with competitors.