If your organization - like most today - is truly customer-focused, chances are you've already made strides in personalization: relevant content for specific audiences, segmented messaging and experiences designed to retain customers.
However, the great goal of marketing has always gone one step further. Delivering truly personalized, 1-to-1 experiences across all channels, has been the pursued ideal for decades, because it directly impacts loyalty, conversions and, consequently, revenues.
The problem is that, historically, achieving such customization at scale has been extremely complex. Over the past forty years, multiple attempts have failed, making it very difficult to sustain growth and project consistent results.
Today, that scenario is changing. Recent advances in artificial intelligence (AI) enable both large brands and smaller companies to finally deliver on the promise of 1-to-1 personalization: offering the right experience to every customer, at every touch point, recognizing them as a unique individual.
However, just because something is possible does not mean that it should be done without a strategy. That's why, below, we review three key reasons why your personalization approach needs special attention today more than ever.
There is no such thing as an average customer
For years, marketing teams have tried to manage the diversity of their audiences by designing experiences for an “average customer”. The logic was simple: create a model that hopefully worked for as many people as possible.
This approach gave rise to the segmentation, which groups audiences according to certain known data in order to address specific messages to them. It was undoubtedly a breakthrough over mass marketing.
The problem is that these segments are usually constructed with limited information, obtained at few points of contact. When applied at scale, each group is assumed to be homogeneous, when in practice it is not.
The result is clear: only part of the segment responds positively. Segmentation improves some indicators, but its effectiveness is limited when looking for real and sustained relevance.
Traditional segmentation does not scale
Rule- and segment-based personalization involves constantly identifying, defining and adjusting audiences and messages. Over time, many organizations reach a dangerous plateau: the cost of managing segments and producing creative outweighs the return.
This is a key idea that is often misunderstood:
1-to-1 personalization does not mean creating unique content for each person.
In fact, a high level of individualization can be achieved by intelligently combining a limited set of elements: messages, images, recommendations, promotions and channels.
What defines a good 1-to-1 experience is not each separate piece, but rather the right combination, delivered:
- In the right channel (email, SMS, social networks).
- At the right time.
- According to the specific context of each client.
To achieve this, it is imperative to abandon old conceptions and accept that customization at scale requires new approaches and technologies.
Consumers have already embraced personalization
Demand for personalized experiences is not a future trend: is a current expectation. Yet many marketing teams still struggle to understand and manage it as if it were a stable and predictable variable.
The real goal of customization is simple: make life easier for the customer. Use data so you can shop, interact and engage when and how you want to. When that doesn't happen, the experience fails.
In this context, the artificial intelligence-based personalization plays a fundamental role. AI makes it possible to interpret large volumes of data, adapt in real time and continuously optimize experiences, something impossible to achieve manually.
The challenge is no longer whether or not to customize, but whether or not to how to do it in a smart, scalable way focused on real value for the customer.
And for this whole process to be successful, having a robust, flexible and experienced platform is key. MasterBase® is your strategic partner for the development of email marketing campaigns. With more than 20 years of experience in multiple countries, it helps companies like yours to communicate with precision, confidence and results.
