Since the advent of data intelligence tools and CRMs, personalization has advanced by leaps and bounds. However, companies continue to lose out on significant opportunities to provide consumers with a more meaningful and authentic experience. Avoiding some of the most common pitfalls in personalized marketing campaigns can help brands accomplish a lot.
According to a 2018 Accenture report, 91 percent of customers claim they are more likely to shop with brands that have personalized deals and suggestions while a 2020 Redpoint Global report says 70% of customers claim they will only shop with companies that understand them at a personal level.
Personalization, when performed correctly, can be a cornerstone for success and a positive customer experience. Personalization attempts, on the other hand, can backfire and push consumers away if done incorrectly.
Here are the five common pitfalls to avoid in personalization.
Data that is incorrect or incomplete
The most popular and obvious pitfall is the data blunder. Anything that is intended to help consumers engage with the company quickly transforms into customers believing the company isn’t paying attention or doesn’t care about them.
The most common causes of data errors are defective data or missing important pieces of information, such as a customer’s first name. Focus on data collection and management before diving into the field of personalization. Companies have more consumer data than ever before, so they must store and evaluate it in a way that makes the path easier for personalization.
The personalization strategy isn’t being updated
Personalization efforts, like all facets of the consumer experience, must be reviewed and revised on a regular basis. This isn’t a “set it and forget it” approach, but far too many businesses fall into the pit of launching straightforward personalization initiatives and then abandoning them. Companies must develop an evolving personalization strategy that interacts with consumers, given how rapidly technology and consumer trends are modified and demands change.
Customer data can be used to drive personalization as well as provide input about what is and isn’t working. Obtain qualitative and quantitative input from consumers to determine what is and is not resonating with them. Keeping the personalization plan up to date means keeping in touch with consumers with new content and ideas.
Making surface-level assumptions
Personalization entails more than speculating about what companies believe consumers want to buy. Making superficial assumptions about customers based on a few factors can lead to misguided personalization attempts that are not only ineffective but potentially offensive.
Customers are complex individuals who do not fall neatly into simple categories based on their age or gender. Personalization campaigns that are most effective are those that focus on genuinely knowing consumers rather than making one-dimensional assumptions about them based on limited data.
Rather than focusing solely on demographic data, consider a broad range of behavioural data. To dig deep and fit customers with the right messages, use multi-dimensional segmentation that includes a variety of demographic, regional, and behavioural variables. Customers find marketing and content that is more engaging and meaningful when it is targeted.
Technology that is disjointed
Instead of being restricted to only one way of communicating with consumers, personalization should be applied across all channels of the customer experience. A consumer can have a fantastic personalized experience with an app, but if that personalization isn’t carried over to all other platforms, such as phone and in-person, the personalization effort would be wasted.
While the majority of businesses agree that personalization is crucial to their success, many of them find IT roadblocks and legacy technology are major obstacles to their personalization plans.
The solution is a complete digital transformation, with a focus on personalization technology. Internal silos are broken down, and strong digital solutions are delivered as a result of digital transformation. Customers will have a consistent personalized experience with updated and reliable technology.
Not Protecting Customer Data
Customer data, which is based on confidence, is at the core of successful personalization efforts. Customers believe that if they provide information to a business, they will use it wisely and protect it. Companies often aren’t honest on how they capture or use consumer data, resulting in a loss of customer confidence.
Data security should be a priority for businesses. Customers should always be informed of what information is being collected, how it is being collected, and how it will be used. Companies should invest in high-quality data management systems that safeguard information and its various sources. Customer confidence is one the most valuable assets for a company, so it’s important not to jeopardize it with a haphazard data security strategy.