Marketing Personalization in the Modern World

In the time of ever-growing technological intelligence, we find ways to personalize many aspects of our day to day lives. From our phones to laptops, to smartwatches, and even our social media profiles, we find ways to customize everything to our liking. But what if companies did this for us? They do. Every time you log in to those social media accounts and customize your experience, or sign up for emails from organizations you like, there is data being collected to tailor different ads to your specific interests and give companies an idea on how to market towards you. Marketing research has been conducted for decades; however, it was harder to conduct because the primary method was through customer surveys, experiments, and direct observation of customers, but today, organizations are processing more than 1,000 times as much data today as they did in the early 2000s, according to Perreault, et al. in Essentials of Marketing. This type of data allows companies to understand their target market more and focus on them instead of blindly marketing towards others and wasting budgets.

So, what exactly is personalized marketing? According to Jen Murray, personalized marketing, also known as one-to-one marketing, can be defined most simplistically as “the implementation of a strategy by which companies deliver individualized content to recipients through data collection, analysis, and the use of automation technology”, essentially, companies are looking at consumer data, figuring out who likes what, and targeting them based on it. This method of marketing helps improve the customer experience, drive revenue, and increase brand loyalty, states Murray. Consumers are more comfortable providing information to their favorite brands when they receive something in return, like discounts or special promotions around their birthdays, and by identifying which people to target, they can send more marketing their way and less towards people who it won’t affect. Also, by providing certain information to brands, businesses can help distinguish important customers and give them a more tailored experience based on their shopping habits.

             However, personalization in marketing is still developing, Vikram, as cited in Giselle Abramovich’s article “The 5 Biggest Marketing Trends For 2019”, stated that marketing is still at “a very basic level of personalization.” But they do expect strategies to become more efficient and mature even as soon as this year. Three companies working together, Adobe, SAP, and Microsoft, have announced their Open Data Initiative, which emphasizes how to better obtain and manage a user’s data. The CEO of Microsoft, Satya Nadella said that “Together with Adobe and SAP we are taking a first, critical step to help companies achieve a level of customer and business understanding that has never before been possible”, the article also claims that data collected through consumer trends is a company’s most valuable asset, which is why this initiative is groundbreaking for marketing. As user data becomes more and more advanced in terms of tracking, and many have heard of recent data breaches or, in some cases like Facebook, situations in which companies and/or sites sell or exchange data without permission, users have become more questionable on how this data is used and what ethical standards there are.

             With some of the most recent headlines filled with Facebook’s data controversies, where the site has, in some cases, either sold or exchanged user data with others. This blatant misuse of personal data has caused outrage in users and left them asking what is considered to be ethical use of their data and what rights they have to prevent this. According to CourseBB.com, there is a code of ethics for marketing which consists of 5 principles, professionalism, confidentiality, consent, opinions, and rules and regulations. First, companies must remain professional, not just when interacting with users or participants in some cases, but also when handling the data. Secondly, all results must remain confidential, unless the user or participant has given their express consent, which is the third principle. They must all respect and not influence a user or participant’s opinion, and “ the Marketing Research Association also ensures that will ensure that all interviewers comply with any laws or regulations that may be applicable when contacting or communicating to any minor (18 years old or younger) regardless of the technology or methodology utilized”. So, where does this leave us?

             Overall, we know that technology advancement is important for today’s society, and personalization can be a wonderful thing, that is, if you approve it. Companies need to be held to a higher standard and need to be adequately reprimanded when there is misuse of consumer data by their own faults. Moreover, consumers need to educate themselves. We need to understand what data is being collected from which sites, and when and how that data is being used. The burden of the modern age falls on everyone’s shoulders, and as consumers we need to be careful if we want to protect certain aspects of our lives, and companies should to respect that. Personalization in marketing is learning which consumers like which products and brands and targeting them more. Organizations are no longer blindly marketing and can figure out key factors that affect the growth of their brand as a whole.

Stephanie Norris is currently a junior and the University of Missouri-Kansas City. She studies Business Administration with an emphasis on management and a minor in Spanish. Stephanie also works as a Personal Banker at Commerce Bank, where she handles an array of banking concerns and provides solutions.