Stop Guessing Start Leveraging on Data Analytics for Personalized Marketing Campaigns

Make Personalization Your Winning Marketing Strategy

Mass marketing has been a marketing approach for a very long time. This approach has one major disadvantage of failing to resonate with individual customers and their specific needs. Most businesses have shifted to personalized marketing. Personalization can be a very effective marketing strategy that can help your business in building stronger relationships with your customers, increase customer retention, and drive profitability. A commonly accepted truth is that a customer wants to know how much your business cares for their needs. This includes but is not limited to their interests, preferences and purchasing habits. Customers are heterogeneous and belong to multiple business sectors, with diverse interests and needs. This is why personalized marketing is very important.

One example of a practical personalized marketing campaign is a yearly review of customer engagement with your business. For example, at the end of each year, a bank could be sending out personalized emails to its customers that include a summary of their transacting habits over the past 12 months. The email could include information about the customer's most used channels, as well as transaction types and personalized financial advice. To make this a reality, data analytics should be involved to drive personalized marketing.? Data analytics play a key role in collecting data, preparing data, segmenting data and creating a personalized message for each customer.

Data Challenges Facing Personalized Digital Marketing

While available customer massive data has opened up several opportunities for personalized digital marketing, it has also created new challenges. Some of the major data challenges facing personalized digital marketing include but are not limited to data analysis and interpretation, data quality and data privacy. Big data is playing a significant role in the advancement of personalized marketing. With the fast increasing volume, variety, and velocity of data, businesses have access to more data about their customers than ever before, and they can leverage this data to deliver more personalized and relevant experiences to each individual customer. But, collecting data is only one milestone; businesses must also be able to analyze and interpret the data in order to make impactful decisions about personalization. This requires a skilled data workforce, as well as the right processes and technologies to extract insights from the data.

Another challenge facing personalized digital marketing is data quality and accuracy. It is important to note that data which is used for personalization must be accurate, complete and recent, otherwise, low data quality can lead to irrelevant recommendations, which can affect the customer experience and expectations. At the same time, businesses must observe data privacy and security, which ensure that they are collecting and using customer data in a responsible and ethical manner.?

The Advantages of Data Driven Personalized Marketing Campaigns?

Using data analytics for personalized digital marketing campaigns has several advantages over traditional mass marketing. One of the main advantages of data driven marketing is the ability to suggest another or higher product to customers based on their purchasing or transacting history. It provides a great customer experience to customers since they will be? receiving product recommendations which are relevant to them. Data analytics also allows businesses to recommend a more convenient channel that customers can use when purchasing products or transacting.

For example, a bank can recommend a mobile banking channel to a retail customer who transacts mostly through ATMs and branch visits. Suggestion about the nearest service center based on customer location or customer past visit is another advantage of data driven personalized marketing campaigns. By using location-based marketing, your business can engage with customers in real-time, providing them with relevant offers and promotions that are based on their current location. This can increase the chances of customers interacting with your brand and making a purchase. Last but not least, data driven personalized marketing campaigns can be cost-effective as they allow businesses to target specific customers, which means that they are not wasting money on marketing to people who are unlikely to be interested in their products or services.

About Emmanuel Damas

Emmanuel has eleven (11) years of experience in the Information and Communication Technology (ICT) domain. His technology experience cuts across several sectors including financial, education, manufacturing, telecommunications, health and transport. He has been involved in strategic and governance activities in relation to Information and Communication Technology (ICT) such as ICT policies and procedures design, Data analytics projects, Data migration projects, ICT system projects implementation, ICT Audits and Awareness trainings especially on data analytics and cyber security domains. Emmanuel's mission is to continue helping people and institutions in reaching their vision through adoption of effective ICT governance practices.