Are you still using the Magic 8 Ball to tell you what your customers want or are you utilizing the current predictive trends of the industry?
Marketers are grabbing on to the predictive personalization trend with both hands – and it looks like this is one trend that’s here to stay. Predictive personalization now allows companies to analyze consumer trends and create marketing appeals based on individual behavior patterns. This is an incredibly effective way to reach a consumer if done correctly.
Personalization Generates Unique Open Rate of 73% – GetResponse
Predictive Personalization: Eyes are Everywhere
In a sense, companies face a catch-22. On one hand, consumers are expecting a personalized experience that can only be delivered by responsive design and predictive analytics. On the other hand, customers are afraid that their information is up for grabs and their sense of security is lost. Brands must find a way to subtly use the information gained to appeal to customers, while staying within boundaries that encourage trust and engagement.
The Value of Interior vs Exterior Data
There are two kinds of data driving your predictive personalization abilities – data gained from your own emails, customer records and web traffic, and data gained from outside sites, search engines and social networks.
Interior data can be used blatantly. Consider how Amazon offers categories, like “Related to Items You’ve Viewed” and “Inspired by Your Browsing History.” While very personalized and based openly on your past behavior, the predictive design elements here do not feel invasive because they are contained within the company itself.
But, when targeted ads based on your browsing history begin to pop up on Facebook or a competitor website, the internet suddenly feels smaller. Companies must be careful when using outside data or using interior data on an outside platform (like through targeted advertising) and avoid approaching the consumer too aggressively.
Natural Force Nutrition utilizes a retargeting campaign for visitors and past customers that is far reaching, but generic in appeal. Ads for Natural Force appear on social media platforms or search engine PPC ads, but are general brand ads. Because Natural Force Nutrition chooses to insert brand awareness without focusing on specific browsing history, these outside ads driven by interior data do not feel threatening in any way to the consumer.
Predictive Personalization Email Marketing
According to SaleCycle: Every single cart abandonment email sent, delivers $ 5 in revenue.
There are Email Marketing companies that focus on helping companies reach out to their audiences with reliable email creation, automation, delivery and design. Brands can utilize their data to segment their audience, delivering relevant emails to improve engagement and click-through rates. There are many ways companies commonly utilize internal data for predictive personalization in their email marketing campaigns, including:
- Reminders for items left in cart
- Follow-up emails requesting item rating or providing item tutorials
- Personalized newsletters or product advertisements based on past viewing history
- Sale reminders based on past browsing history
- Suggestions for products related to previously purchased products
- Special coupons or discounts for purchases or site activity
72% of consumers sign up for emails because they want to get discounts, but only 8.2% sign up because they love the brand. – Capterra
This information allows companies to reach out to their audience members in a personal way and avoid sending generic emails. Companies may segment audiences based on location, purchases and their current place in your sales funnel. Additionally, external data can help a company better understand its target audience members’ interests and behavior on a more detailed level.
Quantity and Quality
Most great marketing tools require an insightful combination of careful planning and realistic resources. Accurate predictive personalization requires lots and lots of data for a clear and accurate picture. At the same time, the company must understand how to use the massive amounts of data it collects. The right people will be needed to help your company know how to use plain data to create successful marketing campaigns.
48% of consumers say that they prefer to communicate with brands via email. – Direct Marketing News
It is important not to over-rely on the success of predictive personalization, but don’t ignore it completely or your company will struggle to reach today’s audience. There are many other brands out there competing for the limelight.
Email is almost 40 times better at acquiring new customers than Facebook and Twitter. – McKinsey & Company
Be diligent in your attempt to successfully implement new marketing tools and they will pay off for you in the end. Predictive personalization may take effort and budgeting, but it is well worth the benefit to both you and your target audience when done successfully.