Delivering content or value to someone you know at just the right moment is called personalization. And, when this personalization is driven by data, it’s known as data personalization! If you don’t know your prospects, how can you give them what they want? Data of potential customers help you to get insights into their preferences and intent that enables you to offer tailored experiences via personalized database marketing. This article discusses data personalization and the role of database marketing service providers with data personalization.
About Data Personalization
In a highly digitized world, the effectiveness of personalized marketing campaigns continues to grow. The days of random cold calling or cold emailing, and generalization are a thing of the past. Today, your marketing efforts demand to be specific, personal, and strategic.
The main intention of a data-driven personalization strategy is to deliver a great experience to customers and prospects. And, that’s the top-most goal according to the 64 percent of marketing professionals surveyed. Increasing engagements with prospects and further increase the conversion rates are priorities of data personalization that follow the delivery of the experience.
Ways to Improve Customer Experience via Data Personalization
Businesses that implement the ‘customer first’ policy are the ones who embrace early success. These businesses track customer behaviors and accordingly leverage their requirements to facilitate their buying process. Data personalization helps to implement the ‘customer first’ policy in generating a great customer experience. Once you have collected enough customer data, it enables you to know them better, and then streamline your marketing strategies accordingly. Let’s look at the different ways in which you can increase sales by personalizing the customer experience.
Email Subscriber Segmentation
After gathering email ids in your database as part of your lead generation activity, you need to ensure the right content delivery to appropriate inboxes. This delivery of sending the right content to the appropriate inbox is achieved by segmenting your email lists.
A lot of prospects who have signed up to receive your emails might be interested in your brand. However, it does not necessarily mean that their wants and needs are the same. Sending personalized emails that do not get marked as spam needs to be your prime concern. By grouping email subscribers into separate groups ensure that each of them receives relevant information only.
Engage in Social Media
Social media is a great platform to engage with your prospects and customers. You must not let go of any opportunity to engage with your customers. Ensure that you have a process in place that tracks and responds to your customers – this helps you to build loyalty along with developing a good understanding of customer needs and requirements.
Implement Customer-Centric Culture
From frontline representatives right up to the leadership level, create a culture that puts the needs of the customer above the business needs. When your business considers the customer experience as the core of what you do, you are creating a customer-centric culture. Customer satisfaction can bring credibility to your business – it could provide the much-need driving force for more action.
As per Deloitte’s research, customer-centric businesses are 60 percent more profitable when compared to businesses that ignore customer experiences. A customer-centric approach can help you to increased your revenues, generate customer loyalty, decrease purchase abandonments, and facilitate word-of-mouth marketing.
Use Geo-Targeting Strategies
You will be surprised to know this but, you can personalize the customer experience by using their location. By segmenting your email lists by location, it also becomes possible for you to tailor the content on your website based on the customer locations from where they browse. Remember, not having your website customized to the customer location can also hurt your sales. So, you need to ensure that your website visitors are given to choose their location, and accordingly shown the relevant content. Geofencing can allow you to set up an area around one of your store locations. Once an app user enters the location, they can be notified by encouraging them to make a purchase.
Introduce Customer Loyalty Programs
You need to keep in mind that when implementing your data personalization tactics, you should strategize your efforts in such a manner that it leads to customer retention and recurring purchases. For achieving this goal, you need to put in place an effective customer loyalty program.
An example of how you can implement your customer loyalty program is by offering your customers a gift or reward after a pre-determined number of visits or purchases. In another way, you can reward the highest spending customers. Further, when you allow them to track their progress on their user profiles or mobile apps can give them a personalized shopping experience.
Database Marketing – Enabling Personalization
A person or prospect for that matter receives hundreds of different brand messages at regular time intervals. Small business brands are likely to get buried or ignored in the receiver’s inbox. However, an effective data personalization strategy using the right automation tools can work wonders for any business. At the heart of a successful personalized marketing campaign is always a solid database marketing effort. Robust databases are what matters the most for any successful database marketing effort. It’s been observed that 57 percent of prospects are likely to share their data against your personalized marketing efforts. However, there’s only one way in which your business can achieve this, and that way is by tapping into the power of data.
Benefits of Personalization Strategy in Database Marketing
As seen earlier, the success of your personalized marketing strategy depends heavily on the data that you use. With a robust database, the potential for personalization is bigger. To put it in short, all your personalized marketing efforts are database marketing efforts.
Your lead generation strategy can enable you to get started with database marketing – it helps you to accumulate email ids via newsletter sign-up requests. This helps you to know the names of your prospects. Building further relationships can help you to collect data such as age, location, hobbies, interest, income, etc. Selling products or services online can enable you to learn much more about customers depending on their onsite behaviors and buying patterns. That’s how database marketing presents valuable insights that enable you to define buyer personas to target your audience.
Summarizing personalized marketing, it comes with a lot of benefits – it makes it possible for you to target specific audiences, helps you to create compelling offers, builds strong customer relationships, enables to humanize your business, helps to improves customer service, helps to create personalized recommendations and maximizes the effect of segmentation.
Challenges facing Data Personalization in Database Marketing
As seen so far, data personalization in database marketing offers great benefits. But there also some challenges facing this type of marketing that you should know and get familiar with.
One is quite aware of how customer expectations are always high. Today’s customers are used to getting whatever and whenever they want it. They have less attentive spans and display impatience with irrelevant content and slow service. Therefore, it is important to ensure that your personalized marketing deals directly with the target audience’s needs.
Though database marketing generates greater personalization, you should connect with customers at the right time. There are times when customers are just not in the right frame of mind – and engaging with them during such times could be a bad idea. You need to abide by your time and use smart automation tools that can help you to figure out the right time for your personalized offers.
One is quite aware of the fact that data accuracy doesn’t last for too long, it decays over some time – this is mainly because many prospects change their job, or address, or email addresses, and so on. This makes their record in your database redundant and outdated. That’s why you need to use data that are well-maintained and up-to-date for your personalization efforts. Else, it can get less valuable from a marketing perspective.
Data Holds the Key to Effective Data Personalization
Now that you know the advantages and challenges that you face in your personalized campaigns, you need to concentrate on the core issue, i.e. your database – it forms the backbone for all your personalization efforts. Either you can use in-house effective strategies to build your database, or you can obtain readily available databases from a reputed data provider. Obtaining a readily available database is your quickest option to start right away. Start-ups and small businesses should leverage readily available databases for their sales growth, and increasing their reach and visibility.
Database marketing forms the crux of modern business, and automation enables us to get more from it. Database marketing and automation synchronize in harmony. Aligning them together enhances the customer experience throughout the sales journey.
BestDataProvider.com which is into the latest trends in digital marketing and deals with robust databases that are accurate, verified, and regularly updated from getting decayed. Our data lists conform to the guidelines and you will experience reduced bounce rates. For your sample database, reach us at [email protected]
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