Not even 10 years ago personalization in marketing was just looked at as a novelty for the majority of mainstream businesses; only reserved for the luxury marketers who could afford such lavish expenditures and in reward, gain significant profits. The idea of being able to personalize messages, advertisements, and even products, in an affordable and effective way, was something not dare tested by the average business owner of the day due to share costs alone.
Times have since, significantly changed; according to a poll conducted by Adobe, “Nearly three-fourths (74%) of online consumers get frustrated with web sites when content (e.g., offers, ads, promotions) appears that has nothing to do with their interests”. In addition, “77% of marketers believe real-time personalization is crucial”. So what has changed in the world of marketing, and what hasn’t?
Post Digital Personalization – The Non-Online World of Personalization
Let’s start with what hasn’t changed. Personalization is not some ‘new’ thing of the future; in fact many industries have already been leveraging the powerful benefits that personalized marketing brings with it; and we’re not talking about just those high end exclusive luxury markets. For instance, the financial services industry has relied heavily, and continues to rely on personalization. When it comes to booking appointments for financial professionals such as RIA’s, Advisors, and Insurance Agents, nothing is more effective than a targeted letter, that’s completely customized and personalized both by the client, and for their prospect. Using census and other accessible marketing demographics data to screen the prospects in advance (I.E. age, income, marital status, etc.), mailers can be extremely targeted and personalized.
The next question then becomes, but is personalization affordable this way? The simple answer is it depends. It really comes down to two factors in this non-digital model: Volume & Cost per Acquisition.
Factor 1: Volume – It’s simply, ‘economies of scale’. In the case of most goods, each unit produced has a diminishing marginal cost relationship. Meaning (like in the case of mailers), the more you print, the cheaper it gets. Many times this is due to leverage from the raw material inputs, but it’s mainly the result of larger efficiencies throughout the whole system.
Factor 2: Cost per Acquisition – For this explanation I’ll use the example of the insurance and financial services industry. For an advisor, a potential customer acquisition (sale or the acquiring of a new client) can result in a pretty significant return, that is, hundreds of thousands of dollars. If your customer acquisition is let’s say, a mere $20.00; then you need to spend under $20.00 per acquisition for that marketing route to make sense for your business. So depending on your industry, and on your customer, this form of personalization may make sense, or may not.
So What Has Changed?
If you haven’t been living in a complete bubble over these last few years, then it’s pretty evident: technology. Technology has opened up the channels of distribution like never seen before. Mainly through the internet of things, and it’s sophisticated integration into all of our smart devices. But the internet in itself did not enable the sophisticated targeting and personalization that we are now seeing today. Although the internet can be considered the catalyst to the highly digital and personalized age we inhabit more and more every day, what is really enabling this transition is the development of sophisticated application software, smart devices, the cultivation of data, and the voluntary submission of millions of users to readily access their information. With these pieces of the puzzle personalization is becoming easier than ever, and cheaper than ever, for the average business owner.
Why Personalized Marketing Works
- People Like Feeling Important
There’s no rocket science here, people like to feel like they are involved or important in some way or another. By personalizing messages and material, the customer feels more relevant over just some “random” advert they happened to be exposed to. This will enable your marketing to grab people’s attention and make them feel like you already invested time and effort into understanding their needs as a customer.
In the information overload age we increasingly find ourselves living in, we have no choice to but to scale down our engagement to what we find to be relevant and worth our time. By personalizing material and messages you can tap into this sphere of relevance and engage the bustling world of people’s busy lives.
- Increase Conversions
This reason alone should be enough justification for you to start personalizing your marketing efforts. Multiple studies indicate this, whether it be from direct mail, to emails , or even to online shopping; personalization has an impact on your bottom line. Some quick supportive statistics:
- 40% of consumers buy more from retailers who personalize the shopping experience across channels.(Source: MyBuys)
- Leads who are nurtured with targeted content produce a 20% increase in sales opportunities. (Source: DemandGen)
- A high-impact recommendation from a trusted friend conveying a relevant message is up to 50 times more likely to trigger a purchase than a low-impact recommendation.(Source:McKinsey)
- Personalized emails improve clickthrough rates by 14% and conversion rates by 10%.(Source: Aberdeen)
Here at Resource Solutions we personalize all of our marketing efforts for financial and insurance professionals alike. We know the impact of personalization, and the need for it. If you’re a financial professional and looking to find out more information about how we can help you, or how personalization could affect your bottom line, please call us toll free at: 1(866) 855-3710