How Personalisation Improves Customer Retention

June 21, 2019 - Reading Time: 3 minutes

Loyal customers are the bedrock of every successful business. It is easier to convince a previous customer to buy your product or service than to persuade someone completely new. In fact, it costs five times more to attract a new customer than to retain an existing one. Personalised marketing helps your brand stay relevant to existing customers, thereby retaining them.

Personalised marketing is the use of artificial intelligence (AI) to collect and analyse data in order to deliver individualised content to customers. Netflix, for example, customises recommendations based on user behaviour and viewing history.

Here are some ways you can incorporate personalisation into your marketing strategy.

1. Email Marketing

Customers are more likely to open an email that speaks directly to their wants and needs than an email that is generic. Personalisation doesn’t just increase the chances of your marketing email being read, it also increases the likelihood of conversion. According to a survey by Infosys, 86% of consumers say that personalisation has some impact on what they purchase.

ZALORA, one of Asia’s biggest online fashion retailers, evidently understands this well. The company uses data on their customers’ purchase history to notify them when their favourite brands are on sale. They recommend new products to customers based on their previous purchases.

2. Content marketing

Creating personalised experiences can make customers feel appreciated and create a positive image for your brand. Customers who feel valued tend to be more loyal.

Spotify: Personalised Playlists

Spotify is a great case study. The music streaming company is constantly working to improve and implement new individualised music experiences for users. Just early this year, Spotify announced that it would be personalising mood- and moment-related playlists that were previously human-curated. This decision came about after the company discovered that users listened to personalised playlists for longer periods of time, with many proceeding to seek out their favourite tracks for repeated listening. Spotify has also been actively boosting user engagement by sending individual users a compilation of their most-streamed songs at the end of the year.

Personalisation has helped Spotify retain users as well as set itself apart from competitors like Apple Music and Pandora.

Nike+: ‘Our Year’

Nike+ is a mobile app that tracks and documents users’ workouts. As part of Nike’s efforts to build user engagement, the brand sent its users personalised videos reviewing their fitness progress over the past year.

It might seem like a small gesture but it will go a long way in making customers feel seen and valued.

Furthermore, personalised content – like what Spotify and Nike have done – are highly shareable. This provides brands with higher visibility on social media which in turn helps boost brand awareness.

3. UX Design

UX Design is an important aspect of every website, particularly so for e-commerce websites where it could make or break a sale. The success of an e-commerce business hinges upon the ease of purchase. A website that remembers the details of existing customers – such as delivery and billing addresses – makes future purchases hassle-free. Be that as it may, companies should still give customers the option to choose whether they would like their details saved due to privacy reasons.

Advancements in data mining technology and automation have empowered marketers to personalise marketing messages according to the needs and wants of individual customers. The goal of marketers should be to help customers see the relevance of their product or service; it is to say to the customer: “I have what you want”. Customers will stay with brands that they perceive they need.

It’s time to get personal.

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Why Marketers Should Pay Attention to Climate Change

June 7, 2019 - Reading Time: 2 minutes
Category: News

The earth is warming at an alarming rate. Sea levels are rising, sea ice is disappearing and walruses are throwing themselves off cliffs in suicidal attempts to reach the sea. Climate change isn’t just affecting the lives of wildlife in the polar regions, its effects are already being felt worldwide, and governments and consumers are paying increasing attention to the issue. Here are some reasons why marketers should be doing the same.

1. Environmentally-Conscious Consumers

Consumers are becoming increasingly aware of the perils of climate change and a large proportion of them feel that companies should help improve the environment.

Via Nielsen

As consumers gravitate towards green consumption, brands will be expected to step up and provide affordable, convenient eco-friendly products. Marketers will have to change the way they sell. It will no longer just be about having an eco-friendly product, it will be about brand image. Brands will need to cultivate a “green reputation” and to make real changes to their processes. Companies like H&M and Patagonia are already working towards making their brands synonymous with ‘sustainable fashion’. In order to persuade environmentally-conscious consumers to buy your products, you need to have your ear to the ground and be knowledgable about issues surrounding climate change.

2. Governmental Green Policies

Governments are ramping up the implementation of green policies. EU member states have committed to banning single-use plastics by 2021 and Malaysia has plans to do so by 2030. Singapore has declared 2019 as the Year Towards Zero Waste and has plans to launch a masterplan that seeks to reduce food, packaging, and electrical and electronic waste. In future, new laws and regulations will be introduced to push businesses to become more eco-friendly. As governments implement even more green policies, businesses are going to have to change the way they operate in order to be sustainable. Since marketing strategies take time to plan and implement, marketers should be keeping close tabs on the development of the green movement to remain adaptable.

3. More Businesses are Going Green

56% of companies in the Fortune 100 and Global 100 have already set goals to reduce greenhouse gas. If you don’t align your brand with sustainability efforts, you are going to fall behind when green consumption hits tipping point.

Becoming more eco-friendly is just the first step; the second is to ensure that consumers know that you are. In order for them to find out, you need to tell them. Crafting effective long-term marketing strategies require an in-depth knowledge on the issue. Pay attention to the conversations surrounding climate change; note down the buzzwords used, like “single-use plastics” and “carbon neutral”, and use them in your messaging. Being able to communicate your ideas on climate change will show consumers that you are sincere about saving planet and not just riding the wave with a marketing gimmick.

As the green movement gains even more momentum, consumers all over the world will be altering their buying behaviours. Climate change will fundamentally transform the way we live, work and conduct business. In order to stay ahead of the curve and to prepare for the future, marketers need to start paying attention to environmental issues. Now.

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