Marketing Personalization: The Secret to Building Loyal Customers


Marketing Personalization: The Secret to Building Loyal Customers

March 2023

Building customer loyalty is not easy for businesses, especially since almost every business has some
rewards program. From punch cards to complex mobile apps, almost every business aiming to grow has
a strategy to build its relationship with its customers. This makes it more challenging for businesses to get
customers to sign up for their membership program.

Even when businesses get people to opt into their loyalty program, it doesn’t mean customers become
loyal to the brand. Think about how many punch cards, loyalty cards, and membership accounts you own
but do not use. That’s because many businesses do not have an engaging loyalty program. Which results
in high attrition rates and low profitability.

So, how can businesses like yours improve your customer loyalty program, so you can get more
members and build brand loyalty?

Marketing Personalization is the key to building customer loyalty.

Consumers have become more demanding when it comes to their interaction with brands. This is brought
about by technological innovations, social media, and e-commerce. Now, consumers seek personalized
experiences and will not settle for generic messaging, offers, and experiences.

Your customers want to be seen as individuals with their own preferences, identity, and values,
not just another statistic in your business.

This is where marketing personalization comes in. Marketing personalization is a strategy where
businesses use consumer data to create unique messages, offers, and customer experiences. Take, for
example, e-commerce sites like Shopee, Lazada, and Shein. These platforms track their user’s behavior
across different apps to understand their preferences, desires, and even problems. They use these
behaviors to recommend products that align with their user’s needs. This strategy increases the likelihood
that customers will buy what’s being advertised to them.
And because marketing personalization focuses on serving relevant and helpful ads, messages, and
products to consumers, customer satisfaction increases due to the absence of clutter.

The Power of Personalized Campaigns

According to Accenture, 91% of consumers say they are more likely to shop with brands that provide
offers and recommendations that are relevant to them. Based on research by Statista, 90% of consumers
find marketing personalization appealing.

These statistics show how important personalization is in today’s marketplace. Consumers are growing
accustomed to personalized experiences because of how e-commerce brands interact with them –
serving them with relevant ads, messages, and products.
Personalized campaigns effectively build engagement, preference, and loyalty toward your target
customers. It’s also a powerful tool to make your marketing campaigns cost-effective and profitable.

Personalized campaigns are effective marketing strategies that increase traffic and conversions to your
website and store.

Creating Personalized Campaigns
Understanding your customer base
The first and most critical step in creating personalized campaigns is gathering consumer data. The
information you gather from your customers will help you understand them better. It gives you a clear
insight into their preferences, interests, and behaviors. These factors are essential when trying to craft
personalized campaigns because these are all points of personalization. 
You can gather all this information on different platforms. You can use your own shopper data from your
loyalty management program. Ideally, your loyalty software allows you to capture and manage essential
consumer data like demographics, product preferences, and buying behavior. Another source of primary
data is the web analytics found on your company’s website and social media platforms.

Once you have gathered all this information about your customers, you can supplement it with 3rd party
data you can get from media vendors, research companies, or published works. Use these tertiary data to
further understand your customers.

Creating personalized offers
After studying your customers and creating a consumer avatar, it’s time to develop personalization ideas.
Here, you’ll need to come up with ideas on how to capitalize on the preferences of your target customers.
Use their likes, dislikes, desires, and behavior to create marketing messages, offers, and products that
they find relevant and appealing.

For example, you discover how your customers are fans of a particular music group. Then, you can
partner with this group in different ways to create attractive experiences for your customers. A real-world
example of this is when Bench partners with KPOP groups and organizes meet and greets for
customers/fans who purchase a certain amount of products.

Implementing Personalized Campaigns
Implementing personalized campaigns is no walk in the park. Unlike old loyalty rewards programs where
you can do things manually, personalized campaigns require businesses to have a loyalty management
system. That’s because these systems provide you with all the essential tools and functionalities you
need to run an effective personalization campaign.

If you want to learn more about what loyalty management software you should use for successful loyalty
programs, check out this article we wrote.

Marketing Personalization: The Secret to Building Loyal Customers