Brand messaging can conjure emotions and transport us to a magical place in time. Iconic companies are so effective at building their brand through storytelling that decades after advertising campaigns, their messages remain firmly implanted in consumer consciousness. In 1971, The Coca-Cola Company aired its iconic “Hilltop– I’d Like to Buy the World a Coke” commercial as part of their “It’s the Real Thing” campaign. It created such a strong consumer connection that, to this day, it transports Generation X-ers to another time and place, as they can still hear the Coke jingle in their heads when thinking about the brand. This kind of messaging stands the test of time because it connects the audience with the right message at the right time. The powerful impact of these campaigns builds brand loyalty decades later, generating billions of dollars in revenue.
Modern marketing has the advantage of robust consumer data insights, which has propelled some organizations to personalize powerful messages and build brand loyalty one customer at a time. Some brands have become so adept at utilizing consumer data that 71% of consumers have come to expect personalization and a staggering 76% get frustrated when it doesn’t happen.
Targeting Individual Consumer Needs
Traditionally, general trends based on focus groups or surveys identified strategic messaging targeted to large market segments. Today, the proliferation of digital marketing has inundated consumers with generalized messages, causing them to tune out a great deal of what comes across their screens.
As a result, brands are turning to consumer data to improve the effectiveness of their campaigns by focusing on individual needs. At the same time, marketers are moving to offline channels such as direct mail to cut through the digital noise. Although technology has made it harder to get messages across, it has also provided the tools to create individualized messaging that can cut through all that noise.
“The benefit of consumer data is that it can help marketers pinpoint individual needs to create messages that are specific to each person. Add to that an additional channel with Direct Mail, which is considered more personal than digital marketing, and companies can see a noticeable improvement in response rates.”, says John Leonard, V.P. Sales and Marketing, Cover-All Business Communication Management.
Organizations implementing personalized marketing report an 80% increase in their bottom line. Yet only 42% of corporate decision-makers are focused on personalization.
Capitalizing on Zero and First-Party Data
Personalization goes far beyond using first and last names. Collecting zero-party data (directly from the consumer) and first-party data (from company sources) is only successful if you amass meaningful information and use it to reach consumers at the right moment with the right message.
Many businesses gather consumer data from various sources, including surveys, customer purchase history, form fills, customer feedback, CRM data, website visits, and social media interactions. However, capitalizing on this data remains challenging for many organizations. Asking the right questions, capturing the most important data, and synthesizing data in a meaningful way is vital. “The ability to get the most out of consumer data rests on using custom-tailored data programming software like those we have developed to help organizations identify historical patterns and key consumer preferences. We then take that data and apply variable printing to change images, photos, and graphics to create truly personalized messages.”, says John Leonard.
Benefits of Zero-Party and First-Party Data
- Provides a more accurate picture of consumer needs and wants.
- Reach your target audience at the right time with the right message.
- Compliance with privacy laws.
- Targets more effectively.
- Predicts future trends.
- Improves customer loyalty.
- Increases conversion and response rates.
Personalization also involves offering consumers the ability to have more control over promotions and loyalty programs. An overwhelming majority, 73% of consumers, want to be able to choose their own rewards, and 72% prefer they be custom-tailored. Discounts and special pricing are still important to consumers, but they want a sense of belonging and prefer experiential rewards. “Customized data programming allows organizations to build loyalty programs based on consumers’ preferences. Brands that allow consumers to build their own experiences will have the advantage of building meaningful and lasting relationships.”, says Leonard.
The Right Time: Trigger-Based Programming
Timing is everything. Personalized communication at the right time is particularly effective at fostering repeat engagement. This is why many companies use trigger-based marketing to capitalize on consumer data insights.
Trigger-based marketing occurs when a particular event triggers communication. For example, a specific date can be used to initiate communication, such as a membership or insurance policy expiration date, birthday, anniversary, and holidays. A trigger can also be applied to life events, such as the birth of a child, graduation, wedding, or moving into a new neighbourhood. Canada Post’s National Change of Address Data Service, for example, can identify new potential customers within an area, allowing businesses the opportunity to trigger automated mailings to be sent to introduce their business.
Consumers value personalization so much that 91% say they are more likely to shop with brands that provide offers and recommendations that are relevant to them, and 70% of consumers say direct mail is more personal than online interactions. Also, as AI technology emerges, more organizations will be able to analyze large amounts of consumer data quickly and efficiently to create highly personalized messages and offers. Brands that use key data insights to develop customized campaigns will see improved results in an increasingly competitive marketplace.
John Leonard is V.P., Sales & Marketing for Cover-All Business Communication Management. He works with his team and clients to develop relevant and effective communications by using data and technology. Contact Cover-All Business Communication Management to find out more at (416)752-8100.