If you think your customers don’t care about getting personalized emails from your brand, better think again. The proof is right there in the numbers, this time in a new report from Formation:
These consumers aren’t talking about the basic tactics for personalized emails like mail-merging their first names into the subject line or greeting or varying content by gender. As the study notes, “75% of consumers said the marketing emails they open frequently contain segmentation, indicating these are now table stakes.”
That’s a solid conclusion, which concurs with findings Liveclicker reported in 2019 from a study by The Relevancy Group.
That study, The Value of Personalization Optimization for Retailers, revealed the business case for advanced personalization: Every $1 you spend on advanced personalization returns at least $20 of additional revenue that’s over and above email’s already amazing ROI of $44.
But, just as basic personalization doesn’t move the needle for consumers, it won’t generate that eye-popping ROI, either. What does? The advanced personalization that shows customers you know who they are as individuals, not just records in your database.
The Formation study, which studies factors that affect customer loyalty, includes a key data point not often found in personalization studies:
Personalization tactics that increase engagement and loyalty, such as personalized emails, web sessions and location-based mobile messaging, can also turn customers off.
How you use that personalization can make or break your campaign. Meaningful personalization will increase loyalty, but failures (the dreaded “hello first-name” error, wrong locations, segments or buying/browsing history) can make customers distrust your messages and transfer those ill feelings to your brand.
Personalization succeeds when it creates messages that help your customers shop more successfully, or with fewer frustrations. Start by identifying the pain points you want to address, and then look for ways you can combine real-time moment of open technology with behavior and inventory data that can help take the pain away.
Although there are dozens of ways to use this data for meaningful personalized email, the three suggestions below are all tactics you can test now to see how which can help you achieve better results in the hectic holiday months to come:
1. Real-time shipping progress: Holiday ecommerce will be bigger than ever this year, but if shippers face capacity shortages, that means packages could get delayed unexpectedly. Real-time shipping updates keep your customers in the loop and off the phone to your call centers, wondering where their goodies are.
2. Live offer and inventory updates: Clicking on an offer in an email and then finding the promotion expired or the product is sold out isn’t just frustrating for customers – it can actually drive them to your competition, looking for a similar deal. Using time of open allows you to swap in a comparable item or substitute a new promotion for an expired one.
3. Local weather: Whether you’re able to start promoting outdoor events, you can help attendees decide whether to attend by letting them know what kind of weather to expect, using both time-of-open and location data. This data can also help you choose appropriate images or product assortments, such as promoting flannel PJs for customers in wintry climates and lighter-weight sleepwear for warmer locations.
Using data creatively – but appropriately – is your key to the kinds of 1:1 personalization that customers crave and which makes them feel as if you know them without worrying that you’re looking over their shoulders constantly. Testing different levels and uses of personalization now can help you create more effective campaigns, whether you need them for day-to-day marketing or the all-important holiday months.