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What Is Personalization In Marketing And Why Is It Important?

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Today, everything has become accessible to some extent in the age of modernisation. So does personalization. While personalization isn’t a new concept, recent advances in technology have transformed how and where it can be used effectively.

Photo by Jason Goodman on

Personalization is being embraced by brands everywhere you look.

Customers are becoming increasingly accustomed to personalised experiences, from the ads that appear in your social media feed to the barista at the local coffee shop who greets you by name.

In a recent study, 70% of users expressed frustration when website content was not personalised. Another study concluded that personalised email marketing has the potential to generate a 122 percent average ROI.

Whether your audience interacts with your brand via social media, your website, or email, they have come to expect a personalised experience that makes them feel valued and prioritised.

The importance of personalization in market strategy is vital if a person wants to increase customer engagement in their brands. Its demand is increasing day by day. let’s discover every aspect of personalization first.

History Of Personalization

Personalization is rooted in ancient rhetoric as part of an agent’s or communicator’s practice of being responsive to the needs of the audience. For a time, when industrialization led to the rise of mass communication, the practice of message personalization declined. However, there has been a significant increase in the number of mass media outlets that use advertising as a primary revenue stream, and as they sought to attract customers by purchasing space and time in forms of entertainment and information, they made efforts to learn about the specific demographic and psychographic characteristics of readers and viewers.

What Is Marketing Personalization?

Well, Personalization is the act of tailoring an experience or communication based on information a company has learned about an individual. Just like you may tailor a gift for a good friend, companies can tailor experiences or communications based on information they learn about their prospects and customers.

But in marketing Personalization is defined as the process of using data to target and retarget leads with a brand message that is relevant to their interests, demographics, and purchasing behaviour.

A personalised marketing strategy should make your customers feel as if the brand message was created specifically for them. As a result, personalised marketing is also known as one-to-one or individual marketing.

However, personalization is not limited to digital channels, and customer engagement is only one of the benefits of personalization.

Customers are more likely to return to their favourite hotels and cafes if they believe they are receiving a targeted, personalised user experience. They will be loyal to brands that make them feel special. And we all can relate to this when it comes to salons as if we all are getting a good haircut as we assumed then we always go back to that salon only cause we are getting the satisfaction and good personalised user experience, especially in case of men. they are loyal to their barbers.

By incorporating personalization into your overall marketing efforts, you will be able to connect with leads in a more meaningful manner at all stages of their buyer journey.

Types Of Personalization In the Market

Over the years, as technologies have improved, users have discovered more opportunities to deliver improved customer interactions.  The tech used may vary based on the type of digital property, user intent, and the desired action. There are two types of personalization

1-to-1 Personalization

One-to-one personalization or personalized marketing is a marketing strategy that uses data to deliver highly individualized messages and offers to current or future customers. One-to-one personalized marketing helps marketers to provide an enhanced and effective customer experience to their users and improves the overall marketing impact and metrics. 

A user’s behaviour, such as site visit history, browsing activity, geographic location, device type, and other data, is aggregated by 1-to-1 personalization technology. A personalization engine examines aggregated data and recommends the best, most relevant experience for each user.

When the best experience for each user is difficult to predict ahead of time, 1-to-1 personalization is best used to achieve business outcomes. The machine learning algorithm can analyse each user, track how each user behaves, and make quick adjustments.


Segmentation means dividing the marketplace into parts, or segments, which are definable, accessible, actionable, profitable and have growth potential. In other words, a company would find it impossible to target the entire market, because of time, cost and effort restrictions. It needs to have a ‘definable’ segment – a mass of people who can be identified and targeted with reasonable effort, cost and time.

One of the challenges of segmentation is that in order to produce even greater results, you must target smaller and smaller segments. You will eventually reach a point where the cost of managing the segments exceeds the return.

Having said that, segmentation-based personalization can produce significant results if your segments are large enough and your experiences are tailored well enough.

Examples Of Personalization In the Market

1. Personalised Web Pages

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Photo by Igor Miske on Unsplash

Marketing professionals strive to increase engagement. Customers who are between their first and second purchases are more likely to not make another. You can mitigate this risk by using personalised web pages, which allow your company to connect with customers through dynamic content, recommended products, and location and weather updates.

2. Email Personalization

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Photo by Brett Jordan on Unsplash

Email personalization is an excellent method of connecting with customers. This, however, must go beyond the subject line. If your company serves a wide range of customers, you must consider how to deliver the right message to the right user. This is accomplished by segmenting your email list. By job function, company type, or user demographics, for example. Personalization, on the other hand, is the most effective way to deliver the right content. You can target users based on their browsing history, geography, and location using machine learning. This produces more personalised results rather than guesses based on flat personas.

3. Product Recommendations

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Photo by Marques Thomas on Unsplash

Retail, e-commerce, and other industries use product recommendations. Algorithms analyse customer behaviour to recommend products that are relevant to the customer. The user is then shown related products, offers for specific product categories, or purchases made by other users.

Importance Of Personalization

Customers are more likely to buy from brands that know their name, purchase history, and purchase behaviour. Brands that use this data to deliver relevant communications will see incredible results. If you’re going to do what your customers expect, you’ll need an efficient way to use consumer data to deliver content and experiences that feel timely, in-context, and personalised across all channels.

Customer data is essential for delivering personalised experiences and knowing them well enough to try to meet their needs and even predict what they might want at a future touchpoint.

Customers’ expectations have shifted dramatically from a seamless product experience to one-on-one digital experiences that mirror the typical level of personalization they receive offline. The majority of customers have grown accustomed to digitally personalised experiences such as content recommendations, product recommendations, a dynamic news feed, and social networks. In fact, customer expectations have risen to the point where businesses seeking to improve their products and services are altering their strategy to directly address this need. Personalization is cited as a top investment priority by the majority of business and technology marketers.

Benefits Of Personalization

1. Boost ROI Rates

Personalization boosts revenue by increasing conversion rates overall. Personalization investments by brands were more likely to yield a return on investment. 88 percent of those polled desired some level of brand personalization. Many brands, however, continue to fall short of meeting consumer expectations.

2. Customer retention

Customers want marketing messages and advertisements that are tailored to their specific interests and needs. If a company maintains current information about its customers, it can continue to personalise messages and serve them relevant content. Customer retention assesses a customer’s loyalty and whether they will continue to buy products from a company. If a company makes a customer happy with its marketing content and quality, that customer is likely to buy from that company again.

3. Make Better Recommendations

Product recommendations are an important tool for businesses, but many retailers struggle to provide the right ones. Solving this conundrum could result in large rewards. Clients who add a recommended product to their shopping cart have a 33% higher AOV. Even if product recommendations only generate a small amount of engagement, purchase rates increase by 70%. Making the right recommendations can have a significant impact on your bottom line while also increasing customer loyalty.

4. Social sharing and brand affinity

If customers enjoy a personalized experience, they may share their positive feedback with friends or family. When a company or product satisfies customers and they react positively, they may share their support on social media, which increases the brand’s or product’s reach.

5. Lead nurturing

Lead nurturing is a set of marketing strategies used by sales teams and marketers to convert a prospective customer, known as a lead, into a buyer. If sales and marketing teams concentrate on a specific prospective customer and learn what that person wants and needs, they can personalise their lead’s experience and have a better chance of converting that lead into a customer than if they tried the same approach on everyone. If prospective customers believe the company understands their needs and can assist them in overcoming potential roadblocks, the sales and marketing teams can move those leads further down the pipeline.

The Future of Personalization

Personalization will be the prime driver of marketing success within five years.

Personalization may not be here yet (at least not on a large scale), but it is not far away. Technological, data, and analytics advancements will soon enable marketers to create much more personalised and “human” experiences across moments, channels, and buying stages. Physical spaces will be reimagined, and customer journeys will be supported far beyond the front door of a brand.

While these opportunities are exciting, most marketers believe they are unprepared to take advantage of them. According to a recent McKinsey survey of senior marketing leaders, only 15% of CMOs believe their company is on the right track with personalization. However, there is a significant incentive to figure it out. Today’s personalization leaders have discovered proven methods to increase revenue by 5 to 15% and marketing spend efficiency by 10 to 30%, primarily by deploying product recommendations and triggered communications within single channels.

I did some digging and collected some facts and data on what the future will look like, so guys, hop into your time machine and get ready to explore.

Email Marketing Will Become More Sophisticated And Appealing

As Jeeng CEO Jeff Kupietzy put it:

“With just a single sign up, you can have a known subscriber for life […] and when you send them a newsletter, you can track their interests and behaviors based on how they engage with your content. They become your audience, and you get to cultivate that relationship. It’s a powerful engagement tool that puts you in control.”

According to eMarketer, almost 60% of consumers would be most likely to make a purchase if they received emails with personalized product suggestions based on their buying history.

What’s more, with evolving technologies like artificial intelligence and machine learning, this kind of personalized email marketing is easier to execute than ever. Thanks to AI-based algorithms and automation, marketers can gather behavioural data in real-time and trigger customized campaigns that generate engagement and revenue.

Marketers will invest in multichannel technologies

As marketing matures, leaders will stop segmenting by channel and begin investing more in multichannel, multidisciplinary technologies that promise improved, real-time decision-making based on real-time data, machine learning, and artificial intelligence (AI) […] Data-driven marketing insights will be provided as well as to automate channel selection, campaign orchestration, optimization, and measurement.

Empathy will scale

Empathy—the ability to relate to and understand the emotions of another person—is the foundation of strong relationships. People build trust by understanding and adapting to social cues. That is difficult to do digitally or at scale.

Machine learning is changing that, or at least improving its ability to read and respond to emotional cues. More sophisticated algorithms enable programs to interpret new types of data (visual, and auditory) and extrapolate emotions much more effectively than previously. Amazon has patented new features that will allow its Echo device to detect illness, such as nasal tones indicating a stuffed nose.

In time, these advancements may enable marketers to communicate with customers in ways that are tied to specific moods, such as offering specially curated promotions for music or movies that match that mood.

Personalization tends to be thought of as an important capability for marketing, but we believe it must become the core driver of how companies do marketing.

The new companies should invest more in customer data and analytics, build up agile capabilities, and protect customer privacy because if the new companies focus more on personalization from the beginning, they’ll be securing their future. And believe me, it’s the future. If you don’t believe me, wait a few years and you’ll know.

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