Michael Corleone famously said in The Godfather, “It’s not personal, Sonny. It’s strictly business.”
That may have been true for the mob boss. But in the advertising industry, business is personal. Or, at least, your campaigns have to be if you want to truly keep customers engaged and generate revenue.
As Jason Oates, chief business officer at LiveIntent, said, “I think a brand should be like a good friend who’s making solid recommendations in the moment as a human would […] So personalization has to do with identifying where someone is in their journey and then being an aid to them in that moment.”
The question is: What does that personalization look like exactly and how can you harness it for your brand?
Let’s take a look.
What is personalization?
Personalization is the process of tailoring ad experiences to meet customer interests, needs, and preferences. By analyzing audience data, brands can uncover key insights that can inform marketing strategies and tactics.
For instance, a fashion retailer might discover that their target customers — women aged 18 to 35 — prefer consuming content on weekday afternoons via email apps. The brand might choose to launch customized ads across fashion email newsletters, reaching those readers on smartphones and tablets when they’re most likely to engage.
Or, a men’s grooming brand might notice that a segment of customers hasn’t made a purchase in a few months. Based on previous purchases and site visits, the brand could send a special discount code right to the customer’s inbox. This approach can help reengage lapsed customers and win back business.
Why is it important?
Personalization is important because it can lead to increased engagement and revenue. By tailoring ad campaigns directly to your audience’s behaviors and preferences, you can stand out from the noise and truly deliver value to your customers.
As McKinsey & Company reported, personalization can drive 10-15% revenue lift. Also, 76% of consumers say that personalization was a key factor in brand consideration and a whopping 78% said receiving personalized content made them more likely to repurchase.
What are the challenges?
Delivering personalization is already a challenging task given that businesses must unify and connect disparate data points to a single profile to accurately understand their needs and where they are in their customer journey. Achieving and delivering personalization is only further complicated by the impending deprecation of third-party cookies. Without cookies, brands have to find new ways to track and target customers across the web.
Moreover, marketers face internal organizational obstacles that further complicate personalization initiatives, like siloed departments, for instance. One study found that more than half of marketers say siloed data is their biggest obstacle to leveraging customer insights. Teams like data science, marketing, product, and customer support, can benefit from collaborating with each other and sharing insights that help drive more effective marketing and revenue.
How does identity resolution play a role in effective personalization?
Identity resolution is instrumental to creating personalized experiences. With Identity resolution, businesses can solve one of their key personalization challenges: unifying disparate audience data points and attributing them to a single profile. Once they have a comprehensive view of each customer or prospect, marketers can divide their audiences into unique segments and target them with personalized ads.
But how do you make that happen? With an identity graph! This is a database that contains customer signals like email addresses, device IDs, and IP addresses. By collecting these all in one place, you can then use an identity resolution solution to improve customer data quality. You can do this by removing redundancies, unifying data, and creating a more accurate view of your customers. With a holistic view of your customers you can better understand their interests, needs, and how to further engage them.
How can you achieve personalization at scale?
Personalization doesn’t have to be a headache. You can overcome the obstacles above — and personalize at scale — by using a marketing automation platform rooted in first-party data.
LiveIntent, for example, runs an Identity Graph of over 200 million unique email addresses and 25 billion authenticated data signals. By tapping into this resource, advertisers can connect their own data sets to the larger ecosystem and build comprehensive customer profiles. From there, they can create robust audience segments and launch Dynamic Product Ads, tailored to each customer’s interests.
Ready to personalize your customer experiences for better performance? Contact us to get started.