Personalization Talks #10 with Daniel Neumann
Daniel Neumann, Chief Revenue Officer at Exposebox, discusses the role of personalization as the future of marketing, Amazon as a great example, and the importance of collaboration in achieving effective personalization.
Welcome to our following Personalization talks, where we are pleased to feature Daniel Neumann, Chief Revenue Officer at Exposebox, AI-Powered personalization & marketing automation platform.
In this interview, we will discuss the role of personalization as the future of marketing, Amazon as a great example, and the importance of collaboration in achieving effective personalization.
Why do companies need to implement and use personalization?
I define personalization as the future of marketing, and it’s not just about being relevant but meeting the expectations and preferences of every customer with tailor-made experiences.
Gone are the days when people used to stick with a particular product/service even if it has nothing specific for them.
Why? Because of the huge number of options available today right at their fingertips.
Customers expect businesses to show them exactly what they want. And if you cannot meet those expectations the first time, you will never see them again because they have hundreds-thousand options to choose from, just a google search away.
The data by McKinsey 2021 report on personalization shows that-
71% of consumers expect companies to deliver personalized interactions, and 76% get frustrated when this doesn’t happen.
And 78% of consumers are more likely to make repeat purchases from brands that personalize. Nearly 80% are more likely to refer their family and friends to these companies.
There are several reasons companies should implement personalization in their products or services.
- Personalization can help improve the customer experience by making it more tailored to individual needs and preferences. This can lead to increased customer satisfaction and loyalty.
- Personalization can also help businesses better understand their customers and tailor their products or services to meet their needs better.
- In addition, personalization can help businesses stand out from their competitors and gain a competitive advantage.
- Finally, personalization can help businesses increase their revenues by providing customers with more relevant and targeted offers.
To sum up everything, I would say, personalization is the key to unlocking customer loyalty and retention, which companies must implement and use today.
What is your favorite personalization example?
Overall, personalization in the marketing industry can take many forms, and the best examples will depend on the specific business and its goals.
When talking about some of my favorite personalization examples, I have a few in mind:
- Tailoring email marketing campaigns to individual customers based on their past interactions, browsing and purchase history, like what product they buy, the AOV, the purchase, etc.
- Using targeted advertising to show ads for products or services relevant to the individual user based on their interests and behavior.
- Using customer loyalty program data to create personalized rewards and offers for individual customers.
- Creating personalized product recommendations for customers based on their past purchases or browsing history to show bestsellers, popular and trending products.
- Using personalized messaging on landing pages to address the individual user by name and tailor the content to their specific interests.
Another great example of personalization is the personalized web experience offered by none other than Amazon.
Amazon’s homepage is designed to give customers a personalized experience.
- You’ll see a “Hello” in the menu bar when you visit the site.
- Based on your browsing and purchase history, Amazon will show you a selection of “top links” and things it thinks you’ll enjoy further down the page.
- If you keep scrolling, you’ll see that the entire page is tailored to you, with recommended products and “inspired by” suggestions.
In today’s personalization space, some companies use deep tech and AI to give these Amazon-like personalization capabilities to non-amazon e-commerce platforms.
Personalization is an important tool that can help companies to serve their customers better and compete in today’s crowded and highly competitive market.
What is crucial to take in mind working with personalization?
Data is the foundation of personalization.
Before anything, brands should know their customers.
How can they do it? By asking them!
Receive their consent and leverage non-intrusive and engaging ways to collect it. We refer to this data as customers' 1st-party data. Once collecting this data, you should have access to it and utilize reliable tools to store and execute personalized strategies and campaigns.
But it is important to ensure your customer that their data is collected and used legally and ethically, with their consent and in compliance with privacy laws. And at the same time, strike a balance between providing personalized experiences, respecting customer privacy, and avoiding being overly intrusive.
Moreover, you must be continuously testing and refining personalization efforts. Personalization strategies should be tested and refined to deliver customer value effectively.
Observing the analytics and making desired changes is crucial because experimentation is the key to successful personalization.
From what do you recommend companies start working with personalization?
There are a few different ways that companies can start working with personalization.
- One approach is to begin by identifying areas of the customer experience that could benefit from personalization. This could include product recommendations on e-commerce websites, personalized email marketing campaigns, SMS marketing, or personalized content on social media.
- Once these areas have been identified, companies can begin collecting data on their customers, such as contact information, birthday, browsing and purchasing habits, to understand their preferences better and tailor their experiences accordingly.
- The process doesn’t end with collecting data. Still, with that, companies should have a strong infrastructure that can use advanced AI and machine learning algorithms and is scalable to handle big data and automate the personalization process to make it more efficient and effective.
Which roles in the company should be involved in the successful personalization project?
A successful personalization project is the result of a great collaboration.
It involves a cross-functional team of people from different roles within a company: marketing, sales, customer service, and product development, as well as experts in data analysis. Additionally, the team should include individuals who strongly understand the customer experience and how personalization can improve it.
Ultimately, the specific roles and responsibilities will depend on the specific goals and objectives. It can also vary from company to company, depending on the organization's size. Working with larger organizations and collaborating with many stakeholders, as opposed to working with smaller teams in startups, are equally fun.
Personalization makes such a big positive impact on these businesses — so both experiences are super rewarding and fun!
About Exposebox
Exposebox is an AI-powered SaaS platform for personalized marketing automation. A unified platform that helps marketing teams boost online sales by harnessing big data and hyper-personalizing the customer journey in real-time.
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