The marketers of the past relied solely on cookie data to segment their audiences and predict their likes, interests, behaviors, and shopping patterns. According to ComScore, however, 60% of home computers are shared, thereby diminishing the accuracy of this data.
Today, as consumers share more and more about themselves via social media, mobile check-ins, and more, businesses can access these first party insights, which tie data points directly to a customer’s real identity. As a result, marketers have a unique opportunity to create highly tailored, personalized user experiences and marketing campaigns that speak to users on an individual level.
Let’s take a look at three reasons why your business should invest in a more personal marketing strategy.
Reason #1: Customers are motivated by what is relevant to their interests.
Businesses can use first party data to connect the dots between what their customers want and the actions they want customers to take on-site. For instance, to increase time spent on site and overall purchase values, it is better to recommend products based on a particular user’s identity than to recommend products based on what other users have purchased.
People respond to what resonates with their personal interests and act because a company offers value or incentive. For example, a customer that logs in to a women’s retailer site via Facebook shares her email address, friend graph, and location information. The retailer can then send her a tailored email displaying their latest products, nearest brick-and-mortar locations, and products her friends recently purchased and reviewed. This enables the brand to show value, relevance, and personalization in its messaging.
With first party data, marketers are able to know the demographic, behavioral, and psychographic information needed to target customers with relevant messaging. With 68% of consumers making purchases based off feeling and need, an identity-centric marketing strategy is fundamental (MediaPost).
What This Means For You
You can no longer afford to have a marketing strategy based off anonymous or generalized user data. Instead, you need to leverage tools that gather first-party data in order to market to your users based on their identities.
Reason #2: A good experience is a relevant one.
Over 50% of consumers use social media to find the perfect gift for people (Mediabistro). As a marketer, you can bridge the gap between a user’s social behavior and their on-site experience. For example, instead of directing a user off-site to share products or content to their social network, you can provide a seamless social experience by allowing users to like or share content with one click while keeping the user on-site.
Given that 40% of consumers buy more from retailers who personalize the shopping experience, there is an opportunity for marketers to create an engaging brand experience by connecting the dots between social data and purchasing decisions (Monetate). Marketers should ask themselves if they are losing market share by failing to leverage first-party data to create a personalized shopping experience.
What This Means For You
Every business needs a digital strategy suited for consumer behavior. If consumers tend to purchase more when presented with a personalized shopping experience, you need to implement a digital strategy that leverages first-party identities.
Reason #3: It’s hard to sell when you don’t know whom you’re selling to.
The marketing strategies that win customers’ hearts and purchasing dollars are those that leverage actionable data. Actionable data is the difference between marketing to women 25-34 versus marketing to all 25-30 year old females on the East Coast who did undergrad at Harvard. Without access to actionable data such as a customer’s interests, location, and social graph, businesses are left in the dark and unable to create relevant marketing communications and experiences that draw customers in.
According to data compiled by Ripen eCommerce, when marketers know who they are selling to, a personalized email marketing campaign can generate, on average, $17.90 per email sent. To put it simply, first-party data gives purpose to your marketing initiatives.
What This Means For You
Marketing campaigns need to communicate value on a personal level because customers act based on what is meaningful to them. Strive to make these connections by segmenting your audiences and leveraging their data to personalize user experiences and marketing communications.
Personalization Means More ROI
By collecting first-party data and gaining insights into your customers, your business can nurture your customers through the path to purchase. Ultimately, you can increase your bottom line while providing a personalized user experience. To learn more about leveraging social data to generate ROI, download the free Marketer’s Guide to Social ROI here.
By Amie Toole