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The Benefits of Personalized Marketing

By Dave Taylor

In today’s market, customers are looking for more than just a good product at the right price. Effective strategies are all about building personal relationships.

The future of marketing is less about drawing attention to your brand and more about demonstrating how well your brand fits into your customers’ lives and everyday needs.

Personalized marketing means seeing your customers as individuals, and directly targeting services or products in a way that uniquely benefits their wishes and motivators. It’s a one-to-one relationship between a brand and a consumer, with tailor-made offers based on customer data.

The difference is about how you approach communication. Imagine a cafe chain using a traditional brand-led marketing strategy to boost overall sales. They might send every customer in their loyalty program a one-time discount on iced coffee. A random proportion of those customers then might stop in and make a purchase because they saw the offer.

If the cafe chain used a personalized marketing strategy, however, they would only send a discount on iced coffee to customers who have bought a cold drink before, or perhaps only to customers in the area of the country going through a heat wave. A customer who always orders a hot matcha latte, however, would get a personalized note about their newly released green tea cookies, which would naturally be more suited to their taste.

Using customer data, the cafe can tap into specific customer’s preferences to create personalized campaigns with effective content.

Why does personalized marketing work?

Technology is helping brands connect on a deeper level with their customers. Personalized marketing and targeted offers show a customer that they’re valued, and that their purchasing choices will lead to better deals.

For customers, customized offers are more useful and relevant. Technology makes this possible through AI personalization and Machine Learning (ML). These tools use large data management platforms to identify customer preferences and pinpoint behavioral patterns.

This allows brands to implement personalized marketing campaigns across all channels – from emails to app notifications to social media plugs. Using a one-to-one tactic, rather than generic advertising, brands can target customers more efficiently and build stronger loyalty over time.

Everything You Need To Know About Personalized Customer Engagement

Here’s what you need to know right now about personalization and building better relationships with future customers.

What a successful personalized marketing strategy can achieve

It’s about more than just boosting sales. Personalized marketing is also about improving the customer experience and finding ways to grow your business without sacrificing the heart of good hospitality service. 

Better alignment with customer preferences 

Marketing personalization uses a data management platform to produce individual messaging based on comprehensive insights into customer behavior or purchase history. Using smart technology, the system becomes more accurate over time, helping continuously improve personalization strategy.

Better value-for-money offerings

By matching product features with customer preferences, one-to-one marketing is a more effective approach than general promotional campaigns. Research has shown that brands who pursue personalized marketing efforts see a 40% boost in revenue compared to average growth margins.

Enhanced brand reputation

One-to-one marketing creates personalized experiences for customers. It’s all about sending the most relevant message to each customer based on quality behavioral data. Developing individual relationships through customized offers helps build stronger brand awareness and long-term loyalty from more customers.

Faster lead generation for prospective customers

Enhanced personalized content is designed to captivate potential customers at a quicker rate. Building a loyal customer base is pivotal for brands, and using a successful personalized marketing strategy can be a more efficient route to reaching conversion targets. 

Better customer relationship management

Building brand-to-customer relationships is a self-cycling process. Generating interest leads to engagement, which then builds awareness and general consumer interest. From personalized emails with targeted subject lines to social media marketing based on customer information, this style of marketing helps generate relevant content with very little effort required from brands.

It’s about being a reliable source of comfort and familiarity, and becoming part of a customer’s routine.

Personalization is now so common among hospitality businesses that 71% of customers say that they expect brands to make customized service efforts. In an era flooded with choice, and with companies using the same script to promote irrelevant content, it’s essential to show patrons that your business wants to provide a phenomenal experience. 

Engage Your Guest Using Omnichannel Integration and Personalization

Restaurant guests expect a personalized digital experience. Innovating brands must connect with guests to introduce changes that drive both sales and profit.

The challenges of personalized marketing

While one-to-one marketing can demonstrate significant benefits for companies, there are some challenges to consider.

These are the biggest hurdles to overcome when considering an investment in personalized marketing strategies: 

  • Having enough data to produce effective personalization
  • Accurately mapping the customer journey suited best to your brand and goals
  • Striking a balance between helpful customer communication and pushy up-selling
  • Employing an effective tool for data collection without mismanaging sensitive information 

Tackling these areas is crucial to a successful digital transformation towards personalized offerings. The first step is investing in top-of-the-line technology and working with industry experts to carefully transition your particular brand into the digital future. 

The other essential part of digital transformation is unpacking how new changes in your marketing strategy will affect the customer experience. As TASK’s President of North America John Laporte explains, “Let experience lead the way. Whatever your initiative is in business or technology, it must also improve the customer experience for it to be effective.”

Conceptualizing a Personalized Marketing Strategy

An effective strategy starts with a clear path towards your vision of success. You should have the answers to the who, where, why and how of what personalized marketing should achieve for your business. 

The next step is putting together the people, processes, and technology to work towards a superior customer journey and an efficient marketing strategy. That’s where TASK can help.

The team at TASK are experts in helping businesses navigate and implement new technology. Using a centralized POS system, TASK software is designed for seamless digital integration that helps businesses grow and improve their customer journey. And with a digital stack to support extensive data analysis and performance benchmarking, TASK can support your brand to build meaningful marketing outcomes at the same time.

As Laporte explains, “TASK enables an omnichannel solution for personalization and data-driven insight, allowing brands to maximize their relationship with customers.”

Talk to the expert team at TASK and discover what personalized marketing can do for your brand.