Top 7 Mistakes in Marketing Personalization

Top 7 Mistakes in Marketing Personalization

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According to a McKinsey & Company report, companies that get their marketing personalization right perform much better than those that don’t.

The fastest growing companies make 40% more of their revenue from personalization than their slower growing counterparts. McKinsey added: “Across US industries, the shift to top quartile performance in allocation will generate more than $1 trillion in value.

Top 7 Mistakes in Marketing Personalization

According to marketing managers, there are 7 common marketing personalization mistakes that brands make today that prevent them from maximizing the benefits of their personalization efforts.

1. Use of incomplete data

Jonathan Moran, director of product marketing for SAS, said personalization should include a variety of data sources, spanning from zero to third-party data.

Zero-Party Data (data collected voluntarily and directly from customers) should be combined with First-Party Data (customer demographics) along with less valuable Second-Party Data (Customer Data collected and then sold) and Third-Party Data (data that is collected and sold). collected by an entity that does not have a direct relationship with the customer (sources).

Moran added that zero-sum and first-party data are the most valuable for personalization, and companies should use that to form the basis of their personalization strategies. Organizations that primarily use second and third party data to perform personalization often see poor content customization practices, low response rates to personalization efforts, and little overall value from personalization programs.

2. Uncertainty of data quality

There are increasing demands for data quality, said Christian Witter, Senior Vice President of SugarCRM and General Manager of Sugar Platform for Effective Personal Communications. in their databases. In the absence of this trust, personalization is often weakened by the popularization of the message.”

To get around this problem, Wettre recommended that marketing and CRM databases should be treated as valuable assets and carefully vetted, appended, culled, and regulated. “Successful marketers will systematically validate and augment their data, and look to integrate third-party intent statements,” Whitry said. “When the marketing team trusts their data, they are free to unleash more creativity and compose more interesting and relevant messages.”

3. Lack of customer profile

To increase your effectiveness in properly receiving feedback, you should create a profile of your customers, said Jim Pendergast, senior vice president of SVP for altLINE, a division of Southern Bank Company. Find out who they are, what they like and how changes in your store affect the way they shop. You can usually track these types of changes using analytics software, which can help greatly in increasing your effectiveness. Although you can’t help everyone in the same way, you can Provide a multitude of options that suit people throughout your area.”

4. Use partial display

Moran said the assignment cannot be done on a channel-by-channel basis. “Nothing frustrates the end customer more than receiving a message on one channel (email) for an offer that has just been accepted (or rejected) on another channel (call center, in-store, e-commerce, etc.).

To remedy this, Moran recommended methods like deterministic identity management and the decision to join customer data (all types) from all channels to get a holistic view of the customer.

5. Define customization too narrowly

Likewise, many organizations fail to consider everything that personalization should include, said Sarah Cascon, Vice President of Marketing at Bluecore. “Businesses need to understand that personalization is more than just a name in the subject line; it is product recommendations, offerings, and channel timing that create true organization. It starts with identifying value. Companies typically use identification to collect emails and phone numbers, rather than capture data. on shoppers’ preferences that will allow them to reach consumers at a deeper level. Once this understanding is established, companies can move on to measuring the success of their personalization strategy.”

Cascone added that the best way to see if the personalization strategy is working is whether or not it is first time and repeat buyers. With automated personalized recommendations, retailers should see an increase in first-time purchases. After analyzing what motivated that first-time shopper to buy, companies can continue to leverage this information to drive repeat purchases.

6. Forget about optimization

Moran said organizations that don’t integrate optimization into their personalization practices do two things: They waste organizational resources (time, money, content development time, etc.) and they frustrate their customers. “There is no need for a brand to communicate with the end consumer on a daily basis via email or sponsored social ads. Establish optimization rules to communicate with consumers at appropriate time intervals, when appropriate to the context. Optimization rules with the right communication policies and business constraints will help brands to Get the most out of personalization programs.”

7. Not measuring the right things

Moran explained that good assignment goes beyond conditional logic. Using the if x , then y rules (eg if a customer visits a specific product page on my website, send them an email to retarget) is not the best strategy. Personalization should include analytics, where propensity scores, value scores and lifetime customer value scores must be considered among other analytic metrics in personalization decisions across channels, devices, and time points.

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