Consumers are exposed to hundreds of ads and thousands of brand impressions each day. So how can marketers be expected to penetrate the noise and retain a loyal customer base?
According to an Econsultancy study, those investing in one-to-one marketing experience a 14 percent uplift in sales. Despite this huge opportunity, Econsultancy found that only 5 percent of businesses indicate they are personalizing their marketing efforts ‘extensively’, and 29 percent admit to not doing it all. So what are some best practices to accomplish one-to-one marketing in today’s evolving marketing technology landscape?
It Requires Moving Past a Campaign Mindset
Last week, at Marketo’s Marketing Nation Summit, CEO Phil Fernandez made the case that the mass advertising approach is going by the wayside. He also pointed out that the campaign approach is no longer an option. What is taking over, he said, is engagement marketing, where marketers address each prospect and customer with a message that is as relevant as possible.
To truly engage customers with highly relevant experiences, brands need embrace an approach that is more continuous, iterative, and audience-centric. This requires new processes and incentives as well as the ability to connect customer data to platforms that can optimize ads and websites down to the level of an audience segment or even a unique consumer.
In a recent RampUp Summit discussion, Duncan McCall, CEO and Cofounder of PlaceIQ, illustrated the power of applied data by describing a campaign where an auto manufacturer used a combination of location data and 3rd party purchase-intent data to reach consumers who were in the market for buying a minivan and had recently been to the beach. The creative for this segment highlighted a relevant vacuum feature with the message “soak up the sun, and suck up the sand.”
It’s Important throughout the Customer Journey
It’s common to think about one-to-one marketing as a strategy for increasing conversion rates in customer acquisition campaigns. However, delivery of relevant experiences can have a significant impact on customer retention and loyalty as well. Advanced marketers are beginning to optimize content for audiences across channels and throughout the customer journey.
In that same session, Mark Simpson, CEO of Maxymiser, described how airlines seek to deliver an optimized experience for customers at each stage of the journey based on their reward program status. Joe Stanhope, SVP of Marketing at Signal, spoke about the virtues of “exclusion targeting” (also known as “ad suppression”), which uses data onboarding to remove current customers from online customer acquisition campaigns. This technique reduces waste in marketing campaigns, minimizing the likelihood that an existing customer will experience the frustration of viewing a promotional offer targeted at new buyers.
Great One-to-One Marketing is Subtle, If Not Invisible
While one-to-one marketing techniques can deepen customer relationships, potential exists to create experiences that “cross the line” and verge into an invasion of privacy. Many reference Amazon’s product recommendations as an example of one-to-one marketing done well.
Brian Pozesky, CMO of Eyeview Digital, pointed out that results suffer when the line is crossed. When he discussed the topic at RampUp, he described how marketers pull back when they see performance go down. Consequently, there is a natural incentive for marketers to create data-driven experiences with a high degree of care and responsibility.
From the left: Mark Simpson, Founder and President at Maxymiser; Joe Stanhope, SVP of Marketing at Signal; Brian Pozesky, CMO at Eyeview Digital; Duncan McCall, CEO and Cofounder at PlaceIQ; Stefan Turnquist, VP of Research at Econsultancy.
One of the keys to personalization is connectivity between marketing platforms and customer data sources, such as CRM, email, and point-of-sale (POS) systems. For additional insight on this topic from our partners, check out the Delivering Personalized Experiences Across Channels panel from RampUp. You can also visit the One-to-One marketing section of our website to learn about how LiveRamp offers a simple way to connect customer data sources to marketing platforms built for website optimization or dynamic creative optimization on search, display, and video channels.