Blog

Things we've learned by uniting a new agency model with clients who can't afford to do business as usual.

Make It Personal

In today’s world, personalized marketing is not only expected but also highly valued by consumers. By using data to target consumers with tailored advertisements, brands can deliver information that aligns with specific interests, demographics, and behaviors. Personalized marketing causes consumers to feel that a message was crafted specifically for them, building a sense of connection to the brand and making their products more appealing, setting themselves apart from competitors in the process. There has been a recent uptick on brands incorporating a personal factor into their product or service, including targeted emails, product recommendations, and personalized platform stories. 

Email Marketing

Email marketing can come across as generic, which can quickly lead consumers to hit the trash button. According to Optinmonster, a lead generation software company, email open rates across industries such as technology services, retail, dining, real estate, and education remain relatively low, ranging from just 21% to a maximum of 41%. This highlights the challenge of capturing audience attention through email campaigns. While email marketing can be a powerful tool, consumer expectations have shifted. Email marketing began as more generic messages and notifications, while today consumers are pushing brands to create more personalized messages to engage their audiences effectively. From the subject line to the closing, personalization in email marketing is essential to capturing and maintaining audience interest. A more tailored approach can significantly impact a company’s success, with 80% of consumers indicating they are more likely to do business with a company that uses personalization. Kate Spade’s “Penny for your Thoughts?” campaign is an excellent example of how brands can incorporate personalization into their email marketing. This campaign offered customers a 25% discount in exchange for their feedback, demonstrating the brand’s appreciation for customer input and making recipients feel valued. Beyond monetary incentives, there are various ways other brands can add a personal touch to their communications, further enhancing the customer experience and fostering loyalty.

Personalized Product Recommendations

As everyone has no doubt experienced, major companies, including Walmart, Target, and Amazon, have mastered personalized product recommendations on their platforms. These recommendations are tailored to consumers based on their behaviors and previous purchases, offering them carefully selected suggestions that align with their preferences and interests. This not only simplifies the shopping process but also enhances the overall customer experience with the brand. When executed effectively, personalized product recommendations can yield significant benefits for businesses. BigCommerce, a market leader in industry analysis, reports in their analysis of the U.S. online retail market that 76% of U.S. online businesses have seen positive returns on investment after implementing these strategies. With over 90% of shoppers consenting to data tracking, personalized recommendations have become a valuable tool for businesses to boost consumer engagement.

Amazon has particularly excelled in this area, leveraging location data, trends, and product affinities to tailor product suggestions. As America’s leading e-commerce marketplace, Amazon generated over $135 billion in sales, outpacing all other competitors through its highly personalized shopping experience, which allows consumers to compare products with ease. Jeff Bezos, Amazon’s founder, remains actively involved in technological advancements, including AI, and continues to integrate tools from companies like Microsoft and Google to further enhance Amazon’s personalized market approach, keeping the company ahead of its competitors. As of 2024, Amazon commands an impressive 37% of the market share, with projections indicating it will surpass 40% by the year’s end. This success is largely due to the customer satisfaction driven by personalized product recommendations and the overall convenience offered by the platform. Personalization extends beyond product recommendations; many brands are adopting more creative methods to add a personal touch to their offerings, further enriching the customer experience.

Spotify has excelled at using creative ideas to forge a personal connection with its listeners. The “Spotify Wrapped” campaign, designed for premium users, provides an annual overview of their music journey, highlighting the direct connection between users and the music on Spotify’s platform. This campaign offers real-time rankings, favorite songs, genres, and personalized playlists, demonstrating how Spotify listens to its users and tailors their experience accordingly. By placing the customer at the heart of this yearly campaign, Spotify has resonated deeply with its audience. Despite Apple Music being pre-installed on every iPhone, many users choose to download and subscribe to Spotify instead. According to Exploding Topics, Spotify leads the music streaming market with a 31% share, while Apple trails behind in second place with just 14%. Spotify’s ability to create personalized playlists and connect with its consumers has strengthened brand loyalty and given it a significant competitive advantage, highlighting the importance of building a meaningful connection with users.

The power of personalized marketing can no longer be overlooked. As demonstrated by the remarkable success of Amazon and Spotify, such campaigns and user experiences are key drivers of consumer loyalty and business growth. These brands have mastered the art of listening to their customers’ interests and needs, creating tailored experiences that resonate on a personal level. By leveraging data tracking and consumer feedback, they have succeeded in meeting, and often exceeding, their customers’ expectations. The future of marketing lies in these personalized experiences where customers feel seen, valued, and understood by the brands they support. 

Written by Crystal Arellano - Crystal is an intern at BTP Unite and a rising senior at Texas Christian University.

    Leave a Comment

    Your email address will not be published. Required fields are marked *