Understanding the Importance of Personalization in Digital Marketing

Personalization is one of the biggest digital trends that brands are aiming at today. It is the practice of providing a customer experience which is well-aligned with the consumer’s preferences and specific needs. It has been found that an increasing number of companies are planning to invest in personalization. They are aspiring to create websites that offer engaging content and are customized for each individual. They are fast adopting trigger-based messaging and ‘call to actions’ that bring about greater engagement. The ability to personalize will depend to a large extent on how well you know the customer.

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Testing versus personalization

Conversion is the most significant performance metric for a marketer. However, driving conversions can be a daunting task. Here personalization and testing can come to your rescue. If used well personalization can optimize your conversion rate successfully. By delivering variations of content to web visitors you can determine which experience is most effective in driving traffic. One of the traditional ways to do this is through A/B testing. For the last couple of years, A/B testing is one among the most widely used methods to drive conversion. The page traffic is split into two groups and each group is exposed to different content. The results are measured against a particular goal such as download, registration, click or a completed sale. A/B testing and personalization are both effective on their own, but if used together, can yield better results.

Using data effectively

Savvy digital marketers are taking a step forward to understand their customer better. With the Big Data revolution, they are embracing customer data to make better decisions at all levels. Marketers today can understand and measure how their target audience is behaving online. Businesses can identify audience segments that are characterized by unique traits. Equipped with this intelligence, marketers can identify the paths to conversion with ease. They have an understanding of the role apps, websites and social media are playing in the customer journey. They can easily identify the factors which convince the audience to convert to customers.

Pitfalls in the path of personalization

Personalization enables website visitors to easily find the information they need, which therefore facilitates decision making. If visitors can complete transactions effortlessly on a website, it can be expected to have a higher level of conversion. However, developing an effective personalization program is challenging. Most businesses are stuck in the vicious cycle of exhaustive testing without any return. Some common pitfalls which businesses encounter include:

• Taking a hasty approach: Businesses are often excited at the prospect of potential improvements which conversion rates can bring about. In this enthusiasm, they try to tackle complex experiments which may lead to wastage of time and effort. It is advisable to master a simple A/B test and not lose focus from the testing plan. An example of this haste is the often-witnessed purchase of technology without planning. In most cases, businesses purchase optimization tools without adequate planning. Before the purchase of a tool, an optimization plan should be in place. If you do not have adequate experience, you can seek the help of consultants. They will be able to help you with the testing plan and training which is needed to ensure success.
• Testing processes without iteration: Testing remains incomplete without the iterative cycle of experiments. Each iteration can deliver improvements to an experience. By incorporating outcomes of the first test in the second and so on, you can expect continual improvement which will allow you to compound the ROI.
• Segmentation: Businesses often silo optimization to a single team without involving the organization in a broader sense. This results in segregation that increases the complexity of the tests. Internal roadblocks emerge which can impede progress. It is advisable to build cross-functional teams which spearhead optimization within the business, driving momentum.
• Inadequate understanding of data and analytics: Analytics and data may not play a role in simple testing but are crucial for personalization. Robust analytics and powerful tag management approach will provide you with the agility that you need for personalization. Data which is received from an agile analytics framework will lead to successful personalization.

Taking a step towards personalization

Most organizations encounter these challenges and cannot move beyond basic optimization. Consultants are playing an important role in helping businesses to overcome these hurdles. It is important to figure out what is holding you back. Develop a strategy and impart training to the optimization team. Have a clear strategy in place, and take the help of a consultant to progress from simple testing to real-time personalization.