Personalization and Omnichannel Marketing: A Business Boosting Combination

January 21, 2021

By Autumn Barker

Personalization and omnichannel marketing offer ways through which businesses can boost their sales and get higher engagement. According to recent research, 91% of the consumers are more likely to shop at brands that offer personalized marketing, while nine out of ten consumers look for an omnichannel marketing experience.

What is Personalized Marketing?

Personalized marketing involves optimizing brand communications based on customer data. For example, let’s look at how some of the most visited websites like Facebook, YouTube, Netflix, and Amazon use this marketing approach. 

Each of these sites has similar personalization strategies. For example, if you search for apparel from a specific brand on Facebook, you will see ads for the same product or other similar products on your Instagram and YouTube feed. 

Whenever a user logs into any of these websites, their content is tailored to their personal preferences and previous online activities, creating a uniquely personalized experience.

To better understand this concept, let’s explore the personalization strategy used by Cadbury. They created a highly personalized video marketing campaign that leveraged Facebook data to introduce a new flavor to their Australian audience. Using Personalized Video as a Service (PVaaS), Cadbury created a Flavor Matcher app (for users who consented) that used data from each user’s Facebook account and matched them with a specific flavor or product from Cadbury.

Similarly, when browsing for a movie or show to watch on Netflix, you’ll receive recommendations that are tailored to your viewing history. By leveraging viewing history data, Netflix can provide an extremely personalized and unique user experience that drives customer loyalty and recurring revenue.

In our digital-first, content-saturated world, personalization is a crucial factor in successful marketing campaigns. Consumers expect personalization and are not likely to remain engaged with brands that do not tailor their messaging and user experience to their audience. 

Why is Personalization Important?

According to Statista, 90% of US consumers find personalized marketing campaigns appealing because they are relevant to their interests, provide them with solutions to their challenges, and, most importantly, save them time. 

For marketing strategists, consumer data gives more in-depth insights into their target audience and helps them predict individuals’ needs, desires, and future behavior. Using consumer data to better understand a target audience increases the return on investment (ROI) and accuracy of marketing campaigns while also building customer loyalty.   

Brand Loyalty

Leveraging user behavior to create personalized marketing campaigns drives brand loyalty because customers feel like the brand truly knows and understands their needs. According to SalesForce, 70% of the consumers say that it is more likely to influence their loyalty if a company understands their individual needs. 

Sephora, one of the world’s most trusted beauty brands, took personalization to the next level by creating their “Beauty Insider Community” and customizable “Beauty Profiles” that focus members’ diverse beauty needs and behaviors. 

These profiles allow customers to save everything from the products they prefer to the products they wish to use. Sephora uses this information to better understand each member’s needs and interests then provides product recommendations tailored to each member’s profile.

By providing these tailored profiles and targeted recommendations, Sephora has developed a community of loyal consumers who make repeated purchases because the company understands and anticipates their needs.  

Raising Revenue

Personalized marketing increases customer engagement, purchases, and overall profit. Brands that created personalized experiences saw a jump in revenue from 6% to 10%, three times greater than those who didn’t use personalization. 

Starbucks saw significant increases in revenue following the launch of its mobile app. The Starbucks app allows customers to customize their drink orders and encourages return visits with their rewards program. In return, Starbucks can collect data like purchase history and location information to leverage for future marketing campaigns and business decisions.   The launch of their mobile app ultimately skyrocketed Starbucks turnover to $2.56 billion annually. 

Personalizing a customer’s experience with your brand and giving them incentives can improve customer loyalty and have an upward impact on revenue.

What is Omnichannel Marketing?

Omnichannel marketing uses multiple channels to provide consumers with a consistent and cohesive brand experience. This marketing strategy creates an integration between distribution (website), promotion (social media), and communication (email and texts) channels on the back end. 

If a customer lands on your website through a Facebook ad (promotion), browses through several products, and decides to leave. You can offer them a last-minute discount for entering their email ID (communication).

If they successfully enter their email ID, you can send them reminders about your products and send them offers. This way, your consumers will be fully aware of your brand and encouraged to head back and make the purchase.

By paying attention to the small details of your customers’ digital behavior and communicating with them on their preferred channels, you can personalize their experience with your brand. 

Why is it Important?

Research shows that companies with a developed omnichannel marketing strategy retain, on average, 89% of their customers, compared to 33% for companies without omnichannel marketing.

Successfully utilizing integrated omnichannel processes can lead to a better user experience, customer loyalty, enhanced brand visibility, better analytics, and high customer retention. 

In-depth Data Collection

Omnichannel marketing enables brands to collect user data using cookies, device IDs, shopping carts, social media, mailing lists, point-of-sale systems, loyalty, and referral programs. Using this information, brands have a full view of each customer that engages with them.  These insights allow brands to create better marketing campaigns that lead to higher conversion rates.

The Walt Disney World Resort in Orlando resort uses this omnichannel strategy. The visitors use Magic Bands to reserve rides, unlock hotel rooms, and make purchases. Disney gathers data from every interaction and uses it to create targeted offers tailored to each guest’s preferences and buying behaviors. 

Greater Interaction Across Channels

With omnichannel marketing, brands can improve customer engagement by speaking to them on their preferred channels. Omnichannel marketing allows these conversations to be continued across multiple platforms without losing context. 

Amplified Brand Visibility

Marketers that use three or more channels in omnichannel campaigns earned 18.96% more engagement than marketers using single-channel campaigns, which only received 5.4%.

When your brand’s message is consistently placed across multiple channels with targeted messaging, your customers have a personalized experience, resulting in increased brand loyalty and customer engagement.

Benefits of Personalization and  Omnichannel Marketing Combined

Personalized and omnichannel marketing strategies are beneficial for business growth on their own. When combined, the two create high converting marketing campaigns that build customer loyalty, increase engagement, and, ultimately, drive revenue. 

Benefits of a personalized, omnichannel marketing campaign include: 

  • Increased brand loyalty
  • A  6 to 10% inflation in revenues as the brand continues to fulfill customers’ needs
  • Higher conversion rates.
  • High ROI 

If done well, personalization, combined with omnichannel marketing, can help build stronger, more profitable relationships between businesses and customers. Brand Manifest is here to help your brand develop personalized messaging and robust omnichannel marketing campaigns that convert. Contact us for more information on how Brand Manifest can help boost your business with these marketing strategies.