How hyper-personalisation via a CDP can maximise your marketing budget
In 2020 where Domino’s send you personalised photos of the pizza you’re about to eat before you eat it and Uber allow you to use your own playlist in their driver vehicles, personalisation has raised consumer expectations leaving marketers scratching their heads for how to elevate the customer experience in our own industries. As the barriers to entry are continuously being lowered and our competition is fiercer than ever personalisation can no longer be treated as an afterthought. The goal for all us, no matter our industry, is to create a customer-centric eco-system, which can be fostered by hyper-personalisation.
Salesforce recently discovered that 84% of users say being treated like a person is vital to winning their business. Similarly, Salesforce also learnt that 73% of customers expect companies to understand their needs and expectations. Not only do customers demand companies treat them as a person throughout the consumer cycle, but according to Forrester, 80% of customers are willing to share personal data to be treated as such.
As marketers, we spend our budget testing different content types and channels to see what sticks and are dialling up spend in areas we aren’t sure will drive the highest return. Ideally, we want to know in real-time what channels and what content types are driving the most profitable returns and require increased investment and what is costing too much, and may require optimisation. By doing so, we can personalise our content to meet the evolving demands of our customers.
With so many tools and technologies currently being utilised to communicate, it can be difficult to know what stage of the funnel a customer is at. An example of this could be a user who has viewed 3 ads and is nearly ready to purchase but is served web content that is more relevant to the top of the funnel. Having the ability dynamically change this content instantly and serve them lower funnel copy/content that is more likely to encourage them to convert is an example of hyper-personalisation.
What is hyper-personalisation in marketing?
Hyper-personalisation in marketing utilises real-time data and artificial intelligence to deliver highly personalised and targeted products, services, and content.
How can hyper-personalisation improve marketing efficiencies?
Consumers are utilising multiple devices, various platforms and consuming different content mediums on their path to purchase more than ever. As marketers, it’s important that we treat each customer as individualistic as possible. We can achieve this by creating content and addressing them at each stage of their customer journey or risk losing them to competitors.
Hyper-personalisation allows us to achieve this, through gathering customer data points that allow us to craft more meaningful and highly engaging experiences along the customer journey and path to purchase.
There are many ways businesses can achieve this and at varying scales. It can be as simple as capturing additional data points in your email service provider (ESP), building a data warehouse or using a tool like MixPanel to capture meta data against customer contact profiles or going all the way to building a Customer Data Platform (CDP).
CDP’s enable us to build a 360-degree view of our customer to deliver hyper-personalisation and allow marketers to unify data from various systems and crush organisational silos. The technology creates mini-segments to send highly targeted, personalised content alongside real-time reporting and insights to optimise your business activity and campaign execution.
How do CDP’s enable highly personalised marketing?
360 customer view
CDP’s pull together data from various such as our CRM, email service provider, third party data platforms and more to provide an overview of our customer’s demographics and behaviour. By drawing data from all available sources, we create a 360 degree of our customers, rather than making assumptions and decisions based on their activity across our various mediums in isolation.
Real-time data and actions
With the introduction of CDP’s we no longer have to only rely on IT or finance to pull together a report. CDP’s can consume outside data with speed on a large scale, allowing us to update customer profiles in real-time. CDP’s maximise the opportunity for us as marketers to act quickly to send relevant content at the exact right time. An example of utilising real-time data to provide tangible, effective hyper-personalisation is through website content personalisation.
The CDP receives a notification for a particular customer which has their information attached to it and will provide a suggested output such as changing a product description on the product page to be more relevant to the user’s age group or stage in the customer journey. This cycle continues until the user completes a purchase or leaves the site.
Organisational silo crushing, insightful reports
A CDP solution must have real-time reporting functionality that can provide valuable insights and used across organisational silos.
An example of this in action could be the marketing team utilising a CDP to provide data on engagement rates of their personalised strategy and the value of each of its segments. Similarly, individuals from sales teams can utilise the same data from the CDP to report on how their individual sales are flowing through the sales funnel, where we can discover drop-offs such as during an individual sales calls. If the data indicates that engagement rates for follow up emails after a sales call have a low engagement rate, the marketing and sales team can work together to tweak their messaging to be more personalised in the sales call and the corresponding follow up email.
Onboarding your organisation to invest in hyper-personalisation
We as marketers understand the benefits of a highly personalised, customer experience, from acquisition through to retention. However, like any new investment onboarding your CEO, the board and your fellow team members can be a challenging process.
Here are a few tips to get them from thinking “Not more money for marketing, where’s it all going to?!” to “We can’t afford NOT to do this!”.
Record your reporting time
When compiling your next monthly/quarterly report, note how long it took to pull together and how many different data points/tools were required. Explain how by investing in hyper-personalisation, we can bring all of these tools together into a single solution without the need for drawing data from individual platforms. We can shorten our reporting period significantly with a centralised data solution when compared to the alternative.
Break down organisational silos
Reaffirm the importance of breaking down organisational silos and the importance of having a single data solution for all teams. CEO’s and executives will relish the chance to break down silos, a common reason reports and projects break down.
Showcase your vision
Reiterate the importance of creating a customer journey and delivering highly personalised content at each stage of the journey. Consumers in 2020 and beyond are demanding that businesses understand them by delivering relevant content to them at the right moment. Failure to do so will lead to a loss of market share and the potential for emerging competitors who invest in hyper-personalisation to overtake and lead your industry.
Sell them on cost savings and efficiencies
Hyper-personalisation will squeeze every cent out of your marketing budget, serving the right content at the right time. Hyper-personalisation means no more throwing money at the wall and no more lack of understanding of marketing performance. You’ll have full, real-time visibility over marketing attribution, market forecasting, funnel overviews, website analytics and more if required. With real-time visibility, you’ll have the ability to react quickly to poor performing marketing activity.
Provide a “quick-win” solution
Consider how you can provide a short term solution with your existing data solutions to get a “quick win”. Then, sell them on the long term vision of digital utopia. You can showcase in the short term what minor improvements can do to improve efficiencies. Once you’ve reached digital utopia you will run out of room on your wall for employee of the month awards.
Are you ready to embark on a digital and data transformation journey? Give your business real-time market insights to fend off the competition, lead and stay ahead. We’re offering a free, no-obligation, 30-minute consultation to all new enquiries.