All marketers know that personalization is a powerful way to impact business and increase revenue. But how do you do it? And more importantly, how do you do it well?
The Marketsmith CRM team recently took a few pages from the Michaels book as we listened to how they were able to change their marketing strategy to gain retail foot traffic from promo-based to personalization-based. Let us break it down:
First, there’s been a significant shift to a very fragmented marketing landscape. Customers might only spend a few seconds here or there on social media or in a text message. Brands must adapt to very limited and divided customer attention. If you only have 2-5 seconds to engage with your consumer, the advantage of personalization is crucial.
Recent research from McKinsey suggests that being able to communicate with your customers in a personalized way can generate 40% more revenue.
The key to a strong personalization strategy is hyper-relevancy and understanding what it is that consumers want to know. Once you master that first step, you can take it a step further to understand how they want to be spoken to, in what channels and creative formats. It is also important to use the right language that will personally resonate with that target audience (gratitude? inspiration? recognition?).
So how do you bring personalization to the forefront of your marketing?
Personalization can be served up via your website, email, text, social media, dynamic digital ads, etc. Michaels’ personalization strategy touches each of these channels, with content that focuses on inspiring the consumer. Creative is centered around a product or craft that the individual customer is interested in, based on their recent behavior, purchasing patterns and preferences. This ensures that the communication they are receiving from Michaels is relevant to them and eliminates friction at touch points.
Another strategy shift that Michaels has recently executed is operating in an environment of continuous testing, learning and optimization. At Marketsmith, we are constantly living in a test-and-learn environment with each of our clients as we truly believe that testing and learning is not a one-time thing. It is crucial that one test influences the next for continual improvement in your strategy, execution and understanding of your consumer. You should always question what your data insights are telling you, and why customers are doing what they do.
Lastly, to ensure your personalization strategy is solid, you need to always be a critic of your own marketing communications. This means become the customer – receive communications from the brand, put yourself in the customer’s shoes, and see if it works for you. Are you receiving content that aligns with your preferences? Is the frequency of messaging right? Our teams are fully immersed in the customer journey of our clients’ business model and can make personalization work hard for your brand. Contact us today to learn more!