Advantages of Personalization in Marketing

Martech Outlook | Wednesday, November 24, 2021

Fremont, CA

Personalization, often known as personalized marketing, is accomplished via the application of technologies and techniques that create customized experiences. Users have identified new opportunities to deliver better customer encounters as technology has advanced over time. Personalized experiences deliver powerful content to each user based on an algorithm that utilizes behavioral targeting and predictive analytics. Depending on the kind of digital property, user intent, and the desired activity, the technology employed may differ.

Advantages of personalization are as follows:

Improves connection with customers

For ecommerce businesses, engagement should be a significant indicator. Clients are more likely to convert if they are engaged. Increased involvement leads to increased loyalty, which has a direct financial benefit.

Elevates ROI

Personalization improves conversion rates across the board, which boosts revenue. Brands that invest in customization are more likely to obtain a return on their investment. Brands should personalize their offerings, according to 88 percent of people polled in research. However, many brands remain to fall short of consumers' expectations.

Make valuable recommendations

Companies benefit from product suggestions, yet many shops fail to provide the appropriate ones. Solving this conundrum has the potential to pay off handsomely. The AOV of customers who add a recommended product to their cart is 33 percent greater. Purchase rates increase by 70 percent when product recommendations promote even a small amount of involvement. Making the appropriate recommendations can have a significant financial impact while also increasing customer loyalty.

Personalized experiences compound over time

As time goes on, personalized experiences become more valuable. Between the first and tenth tailored experiences, conversion rates increase by 1,859 percent. Add-to-rates, on the other hand, have increased by 679 percent. Having these indicators surge indicates improved bottom-line results. As a result, brands should take the effort to ensure that these interactions aren't just one-off stunts.

Improve engagement rates

According to our EQ Reports, the capacity to identify clients is a game changer. Brands can build better experiences by focusing their efforts on obtaining the relevant data about their customers. Personalization that combines previously collected data with in-session analytics increases engagement rates by 45 percent.

URL: https://kibocommerce.com/blog/what-is-personalization-personalized-marketing/

 

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