The Significance of Personalization in Digital Marketing

Surviving in today’s market and digital landscape requires businesses to maintain a competitive advantage against their competitors by cultivating meaningful relationships with their customers.  Customers are attracted to and invest in brands they perceive are relatable and valuable.

Personalization enables businesses to create a unique, memorable, and engaging experience utilizing various digital platforms with their brand that customers value.  According to Dave Chaffey and Fiona Ellis-Chadwick’s book, Digital Marketing Strategy, Implementation, and Practice (7th ed., 2019), personalization can provide customers and app or online users a digital experience consisting of customized content recommended promotion or product offers based on their behaviors.  It helps businesses increase leads, sales, and conversions and achieve long-term customer engagement with a brand.

Businesses can utilize digital platforms such as email, Instagram, Facebook, Twitter, and YouTube to deliver personalized communications to customers quickly.  Personalization helps create experiences that connect with content that relates and is tailored to their interests, influencing their purchase-making decisions.

Success Feature: HelloFresh

HelloFresh, a German subscription-based meal kit company, and provider offers and delivers customers fresh and high-quality prepared ingredients with easy-to-follow recipes to cook.  According to Nils-Gerrit Wunsch’s Statista article about HelloFresh’s global subscribers, HelloFresh had approximately 5.3 million customers worldwide and more than six times the number of subscribers by the end of the fourth quarter in 2020 compared to 2016.    

HelloFresh utilizes personalization to increase brand awareness, leads, and conversions.  For instance, HelloFresh introduces its brand to new email subscribers and potential customers by sending them emails based on the subscriber’s or potential customers’ behaviors and website activities.  HelloFresh utilizes personalized content in these customized emails to encourage their audience to become customers. 

HelloFresh incorporates marketing automation tools in their personalization digital marketing strategy to create behavioral triggers that send potential customers specific emails at the right time that helps convert them into customers. Moreover, HelloFresh increased their customer retention and satisfaction with their recipes and gained insight to better forecast their customer demands by using a cloud-based data platform that enables HelloFresh to have a 360-degree view of the millions of customers they serve to maximize their personalization of their customer’s experience.  

Key Takeaway

Increases Brand Loyalty and Improves Customer Experience:
Personalization enables businesses to provide customers with meaningful experiences that increase customer satisfaction and engagement, which increases brand loyalty.

Builds Stronger Customer Relationships:
Personalization allows businesses to strengthen emotional connections with their customers. Aligning content around customers encourages positive relationships between customers and the brand and improves customer experiences, enhancing customer retention.

Increases Return on Investment, Sales, and Conversions:
Businesses drive revenue and increase their return on investment by incorporating technology and marketing automation tools with personalization to improve engagement between the brand and its customers, which results in increases in sales, conversions, and return on investment. 

Personalization enables businesses to focus and put customers first and create compelling and appealing content tailored to meet their needs.  Personalization helps create experiences that make customers feel valued and appreciated and, therefore, will generate optimal results. 

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