In fact, 71% of consumers prefer personalized ads. Businesses are striving to meet these expectations and garner the benefits of personalized marketing, such as increased ROI and improved conversions.
Regrettably, many businesses have difficulty with personalization. 63% of marketers struggle with personalization according to research by Ascend2.
What is Personalization in Digital Marketing?
Benefits of Personalization in Digital Marketing
Businesses are gradually realizing the importance of personalized marketing. 89% of e-commerce enterprises have invested in personalization. Below are some benefits of personalized marketing.
- Increase repeat purchases: 44% of consumers will become repeat buyers after a personalized experience with a brand.
- Drive sales: marketers report a 20% increase in sales after adopting personalization.
- Increase purchases: 80% of consumers have a high probability of buying from a business that provides personalized experiences. Personalization efforts can increase revenue by up to 15%.
- Boost ROI: advanced personalization offers a $20 return for every $1 spent.
- Decrease customer acquisition expenses by up to 50%.
- Enhance customer loyalty since brands offer consumers exactly what they want.
Evolution of Marketing Personalization with the Emergence of Social Media
- Marketing segmentation: In this phase, retailers would segment customers into groups based on a few general details – For instance, male or female, new or returning customer. The retailers then tried to communicate with the customers accordingly.
- ‘You bought this, so you will like this’: In this phase, customers received suggestions based on their previous purchases and viewed items.
- Detailed data-based personalization: Today, we are in a new generation of personalization. The modern-day consumer is no longer satisfied with segmentation. Instead, they want detailed data-based personalization whereby businesses customize experiences based on their needs, interests, and preferences.
How Personalized Digital Marketing with Social Media Bots Improves Conversion Rates & Increases ROI
- E-commerce chatbots help consumers effortlessly find products from large catalogs. Although online shopping offers a broad range of products for customers, navigating through the merchandise can be overwhelming. Luckily, guided shopping chatbots help customers find products easily and conveniently increasing chances of purchase.
- Bot marketing improves the customer experience. Social media bots deliver personalized customer experiences to drive conversions.
- Helps eradicate ad fatigue: With social chatbots, you can move your audience through your funnel much faster than other digital marketing channels. THat means your audience doesn’t have to see the same ad countless times following them around. Instead, they are fast-tracked to purchase with a personalized buying journey in real-time chat.
- Identify customer intents: Providing excellent experiences is fundamental in improving your conversion rates, and, in turn, increasing ROI. Social media chatbots identify customer intents and respond intelligently at scale. This improves conversion rates over time as your bot learns more about your customers.
- Builds brand loyalty and repeat business: After a personalized shopping experience, many consumers say they will buy again in the future. Chatbots personalize experiences to establish brand loyalty and secure future business.