Consumers have come to expect companies to understand them and their preferences
Personalisation works. Your marketing emails are 26% more likely to be opened when you include the receivers name in the subject line, 62% of people claim they are more likely to purchase something when they are met with a personalised retail experience, and 60% of customers prefer if an online store remembers their contact details and purchase information. The message is clear: consumer receptiveness to marketing messages is linked to the personalization of the customer experience.
Large brands such as Coca Cola and NIKE have experienced how profitable personalization can be. Take Coca Cola’s famous ‘Share a Coke’ campaign: this simple idea involved adding the most popular first names/forenames on the cans/ bottle labels, with different names per country. This campaign proved to be very lucrative for Coca Cola and they experienced an overwhelming demand for personalised cans.NIKEiD is another strong example – a service provided by NIKE which allows customers to design their own NIKE products, the result being something branded as NIKE but totally unique to them.
Hyper personalisation is the evolution of personalisation. The term hyper personalisation was coined to differentiate from standard personalisation as it is more advanced – using data analytics, buying behaviour, website browsing history and mobile app behaviour (to name just a few) to provide the recipient with a real-time, highly personalised experience.
Consumers are actually willing to share their data with companies to obtain a hyper personalised experience. According to Salesforce 63% percent of millennial consumers and 58% of GenX consumers are happy to share data with companies in exchange for personalised offers and discounts, while 72% of customers are constantly connected and expect highly personalised, real-time communication with companies.
In recent years there has been a lot of research into digital advertisements and their waning success rates. According to Smart Insights, the overall Display Ad CTR is a miniscule 0.05% which translates into just 5 clicks per 10000 impressions. The internet space has become so flooded with different digital advertisements that consumers are becoming blind to these ads. Hyper personalised or not, advertisements targeting consumers online are producing a diminishing return on investment.
With the decline in success of digital ads marketers are recently leaning more towards a traditional approach and including direct marketing in their multichannel campaigns. Direct mail has been gaining more popularity with recent statistics highlighting its success rates; 92% of millennials are influenced by direct mail to make a purchase decision and direct mail response rates are significantly higher than digital ads.
The best marketing campaigns use a multichannel marketing approach as the majority of consumers are using multiple channels to browse and purchase goods and services. Not only do consumers expect their interactions with a company to be hyper personalised, they expect them to be hyper personalised across all channels where they interact with the company. Not surprisingly multi-channel shoppers are 25%-50% more profitable than single channel customers. Millennials especially are more engaged by a multichannel approach and so a mix of direct and digital marketing is vital.
Thankfully, traditional marketing channels like direct mail and email can now be personalised to a much greater extent than ever before – the same digital workflows and production that make individual bottle labels and hyper personalised email offers possible, can also individualise every aspect of a direct mail piece to each one of a million people.
At Paragon, we have the capabilities to produce hyper personalised mailings. If a customer chooses to send out 1 million mailings every single mailing can contain different items, personalised to every single customer.
We recently conducted a test for a large online retailing customer in which we produced two types of mailings. One set of mailings were produced in a traditional manner and the mailings were only personalised to the extent of using the customer’s name and differentiating the mailings based on sex, so men received a mailing with generic male clothing products and females received a mailing with generic female clothing products. The second set of mailings were hyper personalised – every single mailing contained clothing products specific to that customer based on their unique online purchasing and browsing history. The mailings that were highly personalised had a significantly higher response rate.
The hyper personalised mailings can be economically produced in very high volumes on our full colour inkjet digital web press machine with a quality comparable to offset printing. Our in-house experts have the ability to develop a special layout programme for each of our customer’s specific needs so we can transform the data, imagery and text received from our customers into thousands of unique print files.
The tools available to modern marketers are more powerful than ever before – the art is in knowing how to use them.
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