For marketing leaders, personalized marketing campaigns remain a priority. Personalization enables businesses to engage with customers in ways that make the consumer feel more valued by the business, driving brand loyalty and customer satisfaction.
Developing brand loyalty is a vital tactic for marketers to increase revenue in a cost-effective manner. Acquiring a new customer can cost 5 times more than retaining an existing customer so brands must develop strong relationships with customers by respecting their data and making them feel more valued.
This is particularly true within the retail sector, where consumers are much more accustomed to personal sales and marketing tactics. But as technology evolves, so too does the potential for personalization.
Marketers are now at a turning point, where introducing new innovations can transform the customer experience, potentially providing the much-needed competitive advantage required to grow their market share in such a saturated industry.
However, despite personalization having its many advantages, it can create challenges for organizations to personalize campaigns and experiences whilst remaining compliant with relevant data privacy laws. It’s all too easy to implement these exciting new features without taking a moment to consider the true implications of the data you’re collecting and what you could then do with it.
In this blog, we explore some of the different ways that your organization can make the most out of your customers’ preferences to deliver personalized marketing, as well as the key privacy considerations…
3 ways to elevate customer connections through personalization
Elevating customer connections through sophisticated personalization strategies requires a deep understanding of customer behaviors, preferences, and the ability to adapt to the evolving landscape of data privacy regulations.
Hyper-personalized shopping journeys:
- Implement AI-powered systems that analyze customer behavior, past purchases, and preferences to create hyper-personalized shopping journeys.
- Use machine learning algorithms to predict future buying behavior and adjust the online shopping experience in real-time.
Integrate Augmented Reality (AR) for virtual try-ons:
- Implement AR features that allow customers to virtually try on clothing, accessories, or even home furnishings.
- Utilize data from virtual try-ons to recommend complementary items based on the customer’s style and preferences.
Subscription-based personalized services:
- Introduce subscription services that provide personalized product recommendations and automatic deliveries based on individual preferences.
- Use AI to continuously refine subscription offerings by analyzing customer feedback and adjusting product assortments.
The Privacy vs Personalization paradox
Whilst many marketeers understand the importance of personalization, that doesn’t necessarily mean that they’re being compliant with it. Data privacy is an ever-changing landscape with more legislations coming into place on a consistent basis.
2023 saw 5 US state privacy laws introduced with a further 7 being passed for law, which shows how prepared your retail business must be to achieve compliance.
Customer expectations continue to grow when it comes to personalization – we expect seamless, relevant content and advertisements, with anything irrelevant often leading to irritation or suspicion as to why we’ve been shown certain things.
As a result, personalization is a common marketing tactic, but it’s not always being done with care. When brands get it wrong, for example Aviva sending out an email incorrectly addressing everyone as ‘Michael’, you risk reputational damage.
If you can’t get a customer’s name right, why should they trust you with other much more sensitive data, like biometrics and PII?
Which brings the challenge to the ‘Privacy vs. Personalization paradox’: customers want more relevant experiences, but not at the expense of their private data being exposed.
Brands need to go above and beyond to collect first-party data compliantly, with full transparency to explain to customers exactly why they’re collecting it.
Businesses then need to actively manage and honor their consent and preferences across every touchpoint, to ensure all further communications and activities meet their expectations.
To do this at scale, especially when managing such high-volume data, companies need to invest in technology platforms that enable both the collection and enforcement of consent data.
Cassie’s consent and preference management platform allows your e-commerce business to achieve compliance whilst building customer trust and increasing revenue.