How personalization drives business impact

2 sides of personalization: business and client.

Business side.

For short, it directly impacts Revenue by affecting Life-Time Value (time to conversion, cross-selling, up-selling, churn prevention), Net-promoter score, effective prioritization of sales team effort.

Awareness (the stage where you are grabbing their attention).

Properly implemented personalization at the awareness stage requires investment in time for research, segmentation, copywriting from different viewpoints, tracking, and data wrangling.

Acquisition (the stage where you are acquiring their contacts)

The same magic works for the acquisition stage. In this case, we are talking about landing page message synchronization with the traffic source.

  1. Higher conversion rate
  2. Lower cost per conversion: contact/data acquisition.

Activation (the stage where you are nurturing the acquired contact by proving that you are “the one” who they are looking for)

At this stage, you already have some data which helps to assign the contact to a certain segment and persona. Or you have a journey that helps to acquire more data about the contact, so you could further personalize the messages and channels you are reaching the contact through.

  1. Helps score the lead and prioritize the contact outreach
  2. Decreases time to the first transaction
  3. Helps to bring down the cost per opportunity

Revenue (the money-in stage)

At this stage, we are talking about having the first returns on investment of all of our hard work.

  1. Prioritize sales outreach work, by collecting data on lead, it helps to contact those who are ready to be contacted. Efficient human resources allocation means higher results: less time spends per sales contact, more calls/meetings per day.
  2. When a client feels that the seller knows him and understands his needs without additional explanation, s/he leaves the place on a positive note, so s/he has a higher chance to spread the word about you and come back to you with more money.
  3. Higher amount of the first transaction
  4. Less time to conversion

Retention (the more money-in stage)

Staying in touch with your clients, collecting data on their previous purchases and their preferences would allow you to timely bring the right message to your customer. That would find a way to improve your business performance across several KPIs:

  1. Cross-selling/upselling volume
  2. Lifetime value
  3. Limit unnecessary connections — decrease the “unsubscribe” events.
  4. Remind about your business on time — reduce the churn rate.

Resurrection (the “let’s try it again” stage)

If you are owning a list of customers who got disappointed in your business, it could be a great chance to leverage the list to build a win-back journey. You not only own the contacts with them but also, know what they strongly dislike. By implementing a proper personalization program for the win-back journey, it would help to improve your KPIs:

  1. Cost per lead
  2. Cost per opportunity
  3. Cost per conversion

Client-Side of Personalization

What does the user get out of a properly implemented personalization program?

  1. High-quality service — makes them feel welcomed and special.
  2. Fewer freaktion points, more happy moments.
  3. Less time spent on distracting phone calls, junk email in the inbox, or letters. (Personally, I hate when I get those credit card offer calls and physical mail from RBC, just based on the fact I don’t have one with them. They are not “reading” my profile correctly, I don’t need it.)
  4. Less unrelated annoying banner ads. (Personally, I would love to see something helpful for me and related to my needs at this moment)
  5. Less “surfing” on the website to find new information -> more time for important information which would help to make the right decision and quickly (good for business and client).

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