Personalization is a key theme in marketing right now. Yet marketers are facing many barriers to accomplishing personalized communications.
The verdict is in. Users want personalization. As a matter of fact, in a recent study J&C conducted among consumers, we found that 2 out of 3 customers prefer personalized communications.1 In this same study, consumers said they expect marketers to be specific in their communications.
Furthermore, we recently ran a test of an email personalized with specific customer information versus a slightly more general email. Personalized information drove a 36% higher click-through rate than the general email.
This isn’t surprising, as we know today that consumers and business decision makers demand a greater level of personalization than ever before. According to MarketSherpa, 69% of people state that they would exchange their data for better, more personalized service.
So what are the key challenges that marketers are facing? This chart identifies the key barriers marketers are currently facing in executing more personalized communications.
Insights and observations
Time and resources are the number-one barrier marketers identified as standing in the way of personalizing communications. Over half of respondents felt time and resources were the largest barrier to executing more personalized communications.
The second biggest barrier is difficulty in executing complex programs. It is interesting that marketers ranked this as their second biggest challenge. There is likely a correlation between marketers feeling like they don’t have time and resources to personalize communications and the perception that these communications will require complex execution.
Lack of data as well as lack of data mining and analytical resources were the 3rd and 4th largest barriers to executing personalized communications. Marketers may not realize that behaviorally based information is often at their fingertips and can be more powerful than applying outside information such as demographics.
Tips and recommendations
For years, marketers have realized that segmentation drives relevancy. But now people demand a higher level of personalization. They demand that communications be relevant at a segment level and that they include specifics about them, their interests and their behavior.
1. Leverage behavioral data to create personalization in email.
Rather than just sending out a blanket email that proclaims a “50% off sale or buy our products,” promote products based on past buying behavior. Key buying behavior trigger points include purchase history, abandonment of page or shopping cart, and defecting or lapsing. Consider what you know about the target, then enhance the communications based on individual buying behavior.
Email personalization based on buying behavior is one of the strongest forms of customization and it almost always generates a positive lift in response. This response can translate to improved marketing channel effectiveness.
2. Deliver relevancy in bite-sized pieces.
At first glance, relevancy sounds like it would entail more time and resources. But as you gain understanding of how to motivate engagement and action among groups, relevancy becomes easier. It allows you to focus marketing communications tactics and messaging against smaller groups. And it enables you to focus messaging into more bite-sized pieces rather than trying to be everything to everyone. Focused efforts tend to help manage execution and enable complex execution in stages.
3. When you are ready, consider using personalized URLs.
Tests show that personalized information, including personalized URLs (PURLs), empower and reinforce your communications. Consider incorporating a PURL within the email as a test.
PURLs create a curiosity. The user wants to know what is on a page that is attached to their name or their business’s name. When using PURLs, it is critical to promote the personalized URL within the email. Delivering a personalized URL in email can create a significant lift in program response.
The reality is that PURLs might play right into the barriers marketers face in implementing more personalization. The lift and benefit that marketers can receive will likely outweigh the investment in time and resource. Testing can help you prove out this hypothesis and ultimately lead to increased marketing channel effectiveness.
What’s next
In a recent study we conducted among marketers, managing time and resources was the greatest challenge overall, as well as the greatest barrier to accomplishing personalized communications. A number of other challenges, such as complexity in execution, lack of data and lack of analytical resources, also surfaced as challenges. Consider if any of the tips above might help your organization. J&C also offers a number of workshops to help your company optimize its communications and increase its marketing channel effectiveness.
1 J&C Retail Communications Preference Study
Topics: CMO
