How Personalization in Digital Marketing Improves Conversion Rates & Increases ROI

July 15, 2020

Learn how bot marketing allows brands to improve customer acquisition through personalized marketing.

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In the last few years, personalized marketing has become a hot trend in the marketing world. Consumers’ expectations for personalized experiences are growing every day.

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.

Source: eMarketer

Fortunately, all is not lost. If leading brands such as Ford and RedBull have mastered the personalization game with Spectrm, your business can do so.

Social media bots powered by Spectrm can help you deliver personalized experiences for your customers and hence increase conversions and ROI.

What is Personalization in Digital Marketing?

Personalization is the practice of making sure the unique needs and preferences of each individual consumer are addressed. It ensures that their customer experience is positive by showing you understand who they are and what they want.

In digital marketing, personalization is the ability to tailor messaging to individual customers. It delivers personal experiences based on a consumer’s previous actions, purchase history, demographics, and browsing behavior.

The most valuable data to personalize marketing with is declared data, or first-party data. Why? Because it’s the most reliable data you can get on each customer’s unique needs and preferences.

What is declared data?
Declared data is information that is explicitly volunteered by consumers in a direct interaction with your business. It can be used to validate demographic data. But it also enables marketers to identify the needs, wants and desires of a customer. It is data most marketers can only assume about their audience unless they explicitly collect it.

Numerous points in the consumer journey can be personalized. You can personalize ad content, landing pages, emails,discount offers, sale alerts, product or service recommendations, and much more.

How do brands stand out of the crowd when it comes to personalization? Personalizing your marketing from the very first touchpoint. And making sure you personalize based on meaningful data.

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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

The concept of personalization dates back to a time before the digital age. Sales clerks in local stores knew customers by name, were familiar with their regular orders, and could help customers find what they needed in the store. Then came social media, which transformed personalization.

The evolution of personalization can be categorized into three generations.

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.

Personalization is no longer knowing customer names or inserting their address in emails. It is tracking a consumer’s digital and in-store preferences and customizing communications accordingly. Personalization is delivering the right message at the right time, using the right platform.

How Personalized Digital Marketing with Social Media Bots Improves Conversion Rates & Increases ROI

Social media chatbots offer businesses an opportunity for greater flexibility, faster data retrieval, enhanced interactions with customers, and greater efficiency – without breaking the bank. One benefit of social media bots is their ability to connect thoughtfully and interact with customers around the clock.

Social media bots can help your business with personalized marketing to increase sales and profitability. Below are various ways personalized digital marketing with social media bots enhance conversions and increase 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.

Increase ROI through Personalized Marketing with Chatbots Powered by Spectrm

Forget about the customer service-centric chatbots that appear on a business’ homepage to answer customer queries.

Conversational marketing chatbots powered by Spectrm are proactive, not reactive. They integrate seamlessly with Facebook Messenger, Instagram Messenger and the Google Display Network to meet customers and prospects where they already are.

Marketing chatbots powered by Spectrm enhance conversions and boost ROI by leveraging the power of personalization. With Spectrm, you can convert customers up to 5 times more frequently and lower acquisition costs of up to 9 times. This increases your bottom line substantially.

The Takeaway

As competition intensifies in the e-commerce market, brands are looking for ways to stand out from the pack and attain a competitive edge. Innovative brands are turning to marketing personalization to win customers and their dollars.

Studies show that not only do consumers prefer personalized experiences from companies, but also personalization in digital marketing improves conversion rates while increasing marketing ROI.

In order for businesses to compete and thrive in today’s competitive digital landscape, they must personalize their advertising. It’s not just about the data you collect. How you leverage that data in real-time is what really matters.

Learn how Spectrm can help your brand personalize your digital marketing efforts. Talk to a specialist to discuss your use case and learn more.

What does personalization mean in marketing?

Personalization in marketing, also known as personalized marketing, is a recent digital marketing trend by which brands leverage data and technology to provide customers with personalized messaging and product recommendations based on their purchase history and preferences.

What are personalized marketing examples?

One example of personalized marketing is messaging via conversational chatbots. The bots ask customers about their wants and needs and offer products based on their preferences. These conversations are goldmines of zero party data, which is data directly shared by customers. Companies can use this data to better understand and target their audience with relevant offers.