Personalisation

November 25th, 2009 by Mark Kelleher

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Personalisation is a method of marketing that has been on the outer edges of the B2C marketing mix in the past, mostly due to high operating costs, and the fact that mass marketing techniques have met needs. Now, modern technology and software is allowing many more organisations to consider personalising the way they talk to their customers and future customers. At the same time customers, faced with no end of information, have a growing need to find the few products they really need, rather than the 50 they slightly want. Without personalisation, organisations risk the competition beating them to reach their customers with messages tailored to meet their needs, communicating more effectively than mass marketing.

But where has all this come from? In the past, because marketing could only communicate with the mass market, that’s what it did. The mass marketing industry, created in America in the 20th century, used the newly found mass media, radio and then TV, to reach millions. Marketers were trained in mass marketing, practised mass marketing and had the technology available to deliver the messages. Now, the internet has changed all that.

Early websites were little more than copies of offline sales and marketing materials, “brochureware” the geeks called it. Look back at web design in the mid-late 1990s and you’ll get the picture. This wasn’t personalisation.

Some sites, notably www.amazon.co.uk have always had tailoring. Amazon has been tracking your behaviour on their site and adjusting the recommendations to you personally for longer than any other big site. This works pretty well apart from the continual problem that all personalisation sites and equipment grapple with identifying one individual and their personal needs. We’ve all suffered from it. You order a nice book on knitting for Aunt Bessy for Christmas, and for ever more, the site you ordered it from offers you Knitting Through the Ages, and How Knitting Changed My Life.

So, we have the marketing quandary: messages delivered to individuals that are tailored to their personal needs are effective; but the work required to capture people’s details and preferences is significant and has a cost. Plus – and this is perhaps more fundamental – personalisation for marketing requires the building of an ongoing relationship with the individual. Not just talking to them when you’ve got a campaign running, but continually feeding relevant information and messages to them so they get more value from your brand. So, campaigns go on forever, and production costs need to be managed to cover that.

And there’s another critical difference too. We talked about feeding information and messages. Not just messages. What’s the difference? Information here is just stuff that customers find valuable. It doesn’t sell anything, it doesn’t even talk directly about your products. It builds the relationship. They love you more because of it. And if they love you more, they’re more likely to buy your stuff.

The extent that you, as a marketer, get into personalisation is a call based on your products, your market and your customers. Don’t rush into it, but don’t get left behind. Ah, right. Thanks for that.

3 Responses to “Personalisation”

  1. Tim Lewis says:

    The biggest issue (as you have touched on before) is how to perfect personalisation without infringing on personal privacy? I for example get some highly suspicious “friend” recommendations via Facebook that leave me ceratin the contact must have come from a scan of my hard drive (or my email addresses held on Google) – as there is zero inter connection via existing Facebook contacts.

  2. I agree, the evolution of the internet is contributing to the downfall of mass marketing as an effective means of reaching customers. To maintain customer loyalty and improve conversion rates, marketers have to provide customers with ongoing, individual communication.

    The challenge is getting the right balance. While consumers are no longer perturbed at the prospect of being monitored and analysed (so long as they are made aware that this is happening!), a brand has to convey relevant messages to individuals without over selling.

    Thankfully marketing technology has advanced so that this vision of one-to-one marketing is a reality. It can help organisations create an accurate picture of their customers by combining data from their behaviour online and in the ‘real world’ so they can tailor communications with relevant messages and offers. Completing this image of individual customers still requires expert marketers to judge the tone, frequency and suitability of a campaign which helps to avoid a proliferation of knitting-based incentives (unless, of course you happen to be ‘Aunt Bessy’). If done properly, personalised marketing should feel more like good customer service than a marketing campaign.

  3. Odessa, yes apologies we were ‘off-air’ for a while a couple of days ago. Back now though. Hope you’re enjoying it. Mark

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