Personalization: You Keep Using That Word. I Don't Think it Means What You Think it Means.
Consumer brands have long desired to be connected to and know their consumers. New technologies have made this level of engagement possible. However, there seems to be a disagreement on what constitutes “personalization.” Even the beloved character Inigo Montoya from The Princess Bride has issues with the definition of “personalization.”
What is personalization? Let’s begin with what it is not. It is not demographics which rely upon post-event, aggregated commonalities as a proxy to explain behavior. It is not inserting [first name] into emails to consumers. It is not dropping a cookie on our Facebook page to constantly show us the last product we looked at online. It is not using a third party’s code in a mobile app to unknowingly grab our smartphone’s ID when we walk in to a retailer. It is not sending push notifications when we walk by various stores on our way to a destination. Some would call this targeting. Others would call it intrusive digital stalking. This continual barrage of messaging can be overwhelming for consumers; so overwhelming in fact that they begin to tune out all commercial messaging without even realizing they are doing so – it’s called inattentional blindness (Yes, it’s a real thing, look it up). We basically train ourselves to ignore advertising on a subconscious level.
True personalization appeals to a specific habit of a person, expressed affinity, or a deep aspiration. Collectively these activities, interests and opinions are referred to as psychographic data. Personalization requires marketers to engage with individuals in a manner consistent with this data – i.e. delivering the right message in the right moment. For example, a brand delivering a promotion to a consumer that has “followed” the brand online for a favorite chilled beverage on the hottest day of the summer when the consumer is a block away from the corner store they shop at three times a week. This is the level of personalization that consumers do not just want but rather expect from brands. It is about knowing and delivering what the consumer wants, not what the brands want to sell to them.
Why do we want need personalization? The balance of power has forever shifted. Through technology, consumers have incredible influence over each brand’s ingredients, business practices, sales and ultimately, survival. Transparency is both demanded and rewarded. The reward comes in the form of consumer data which enables a brand to continuously not only improve their marketing function but eliminate costly inefficiencies in the supply chain. Consumer data leads to profitable growth, increased market share and measurable loyalty.
How do brand marketers achieve mass personalization? The path to personalization progresses from unknown, to identified, to connected, to known to personalized. The best marketers are creating brand stories which appeal to the psychographic profiles of their audience. The stories are then distributed to multiple touchpoints both online and offline, with calls to action. Consumers opt-in to engage directly with brands via an app or mobile web on their smartphone. This closes the loop between brands, consumers and actions taken offline at retailers. Measure every part of the consumer’s participation in the brand story – from social engagement to in-store behavior to purchasing the product – to identify the right touchpoint and offer combination that will trigger the desired action.
The benefits of personalization are undeniable. Consumers are setting the tone in no uncertain terms with their anthemic chant “I want what I want at the right time and place.” Every day, more and more brands are proving willing and able to answer their call, strengthening consumers’ resolve. Your brand cannot afford to be left behind. Technology will open doors, but effective mass personalization is not just about playing with new tools. Success also requires organizational change. Be willing to challenge the traditional ways you approach marketing. Rethink the metrics that guide your marketing decisions. Without addressing your marketing culture, adopting new technological tools amounts to little more than half measures. With the stakes this high for your brand, are you willing to risk half measures that may lead to total failure?
What is personalization? Let’s begin with what it is not. It is not demographics which rely upon post-event, aggregated commonalities as a proxy to explain behavior. It is not inserting [first name] into emails to consumers. It is not dropping a cookie on our Facebook page to constantly show us the last product we looked at online. It is not using a third party’s code in a mobile app to unknowingly grab our smartphone’s ID when we walk in to a retailer. It is not sending push notifications when we walk by various stores on our way to a destination. Some would call this targeting. Others would call it intrusive digital stalking. This continual barrage of messaging can be overwhelming for consumers; so overwhelming in fact that they begin to tune out all commercial messaging without even realizing they are doing so – it’s called inattentional blindness (Yes, it’s a real thing, look it up). We basically train ourselves to ignore advertising on a subconscious level.
True personalization appeals to a specific habit of a person, expressed affinity, or a deep aspiration. Collectively these activities, interests and opinions are referred to as psychographic data. Personalization requires marketers to engage with individuals in a manner consistent with this data – i.e. delivering the right message in the right moment. For example, a brand delivering a promotion to a consumer that has “followed” the brand online for a favorite chilled beverage on the hottest day of the summer when the consumer is a block away from the corner store they shop at three times a week. This is the level of personalization that consumers do not just want but rather expect from brands. It is about knowing and delivering what the consumer wants, not what the brands want to sell to them.
Why do we want need personalization? The balance of power has forever shifted. Through technology, consumers have incredible influence over each brand’s ingredients, business practices, sales and ultimately, survival. Transparency is both demanded and rewarded. The reward comes in the form of consumer data which enables a brand to continuously not only improve their marketing function but eliminate costly inefficiencies in the supply chain. Consumer data leads to profitable growth, increased market share and measurable loyalty.
How do brand marketers achieve mass personalization? The path to personalization progresses from unknown, to identified, to connected, to known to personalized. The best marketers are creating brand stories which appeal to the psychographic profiles of their audience. The stories are then distributed to multiple touchpoints both online and offline, with calls to action. Consumers opt-in to engage directly with brands via an app or mobile web on their smartphone. This closes the loop between brands, consumers and actions taken offline at retailers. Measure every part of the consumer’s participation in the brand story – from social engagement to in-store behavior to purchasing the product – to identify the right touchpoint and offer combination that will trigger the desired action.
The benefits of personalization are undeniable. Consumers are setting the tone in no uncertain terms with their anthemic chant “I want what I want at the right time and place.” Every day, more and more brands are proving willing and able to answer their call, strengthening consumers’ resolve. Your brand cannot afford to be left behind. Technology will open doors, but effective mass personalization is not just about playing with new tools. Success also requires organizational change. Be willing to challenge the traditional ways you approach marketing. Rethink the metrics that guide your marketing decisions. Without addressing your marketing culture, adopting new technological tools amounts to little more than half measures. With the stakes this high for your brand, are you willing to risk half measures that may lead to total failure?
Jeffrey Sampson, CEO, Upside Commerce, Inc. is a co-founder of Upside. Prior to Upside, he was co-founder and CEO of a trade promotion software startup, a global director of product management at Microsoft and venture capitalist. Data geek, brand consumer, lacrosse statistician, youth football coach and #foodie.