As digital advertising continues to evolve, one of the most important changes over the past few years has been the shift towards personalized marketing. While originally limited to larger brands, personalization has now become standard practice for small businesses as well with a successful Return on Investment (ROI).

Brands are realizing that if they want to connect with their customers, they need two-way communication. Consumers are used to getting recommendations from Netflix and suggestions from Amazon based on their viewing and shopping habits, and they expect the same experience wherever they spend their money.

As a result, they are increasingly expecting brands to provide them with the same level of personalized service. Smart brands realize this.

Why personalization is so important

Personalization is becoming essential because, at its core, it provides a way for brands to connect with customers and increase their Return on Investment. Consumers want to feel like their individual needs matter, and when businesses reach out to them with relevant communications, it helps build a stronger connection, develop relationships and increase loyalty.

It can also help to differentiate your business from your rivals. Trying to heard in the noise is harder than ever. Consumers are bombarded with advertisements, notifications and coupons that it is becoming too much to take. Today’s consumer does not want advertising, they want information.

Personalization is proving to be an effective means of helping consumers make purchasing decisions. Using channels with a high-hit rate like SMS helps your message stand out from the crowd, and subsequently drive more leads and sales to increase your ROI.

How brands are using personalization

Emails has emerged as one of the marketing techniques where personalization is most common. Many businesses have realized they can increase their open rates and CTRs by making their emails targeted towards individuals. For example, by using the names of subscribers in the subject lines.

In addition, you can send different emails based on where the prospect signed up, providing them with more relevant content. There are excellent examples of how companies have used email personalization to boost results: see some at HubSpot.

Personalization can also provide a unique experience to website visitors based on their behavior. For example, you might provide one website experience to existing customers and another to new visitors. Marketers have to be flexible enough to adapt to customers at different stages of the sales funnel.

The most successful channel for personalized marketing is SMS. Text messages have an open rate of between 90-98%. People read an SMS far more than emails, and act on them. Some brands report up to a 42% increases on conversions have come through SMS marketing and helped with their ROI.

Retargeting is another way to personalize the experience, this time through using ads. By targeting people who have already visited your website, you can reach out to them with more relevant ads that are more likely to catch their attention.

Personalization is here to stay

As consumers increasingly expect a personalized experience, businesses are obligated to deliver. The benefits for businesses are huge, and by practicing targeted marketing and personalized messaging, you will engage more customers and boost customer loyalty while increasing your Return on Investment. All you have to do is show customers you care about their individual needs.

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