Table of Contents
Collecting data is the first step in one-to-one marketing. This data combines behavioral data, sales data, and social data.
After the data is fed into an advanced analytics model, a calculation will tell how well a consumer will respond to different types of content.
Marketing continues to be a constantly expanding field, progressing year by year. Companies have found more reliable means of linking people to a product.
Personal marketing aims to target customers by targeting demographics and interests by utilizing data.
Mass media is effective at increasing the brand’s brand awareness. When an organization is attracting attention, it will use one-on-one marketing. However, mass marketing is declining.
There are more competitors. In today’s world, the competition has become bigger. The competition for goods cannot be achieved by focusing exclusively on marketing.
They have to be different to draw people in. Personalization means greater profit. Data show one-on-one marketing produces better brand loyalty. A niche king is much more lucrative.
What Is One-To-One Marketing?
One-to-one marketing—also often called 1:1, personalized, or individual marketing—is a customer relationship management strategy in which companies leverage data to deliver personalized interactions and offers to customers and leads.
One-to-one marketing is a strategy that uses data collection and analysis, and digital technologies, to deliver personalized marketing.
Advancements in marketing technologies have allowed this field to become increasingly advanced.
Generally, one-to-one marketing can be used to increase overall customer satisfaction, customer loyalty, and customer retention.
One-to-one marketing is also known as personalized marketing.
In one-to-one marketing, the company tries to build product variants that target a specific segment of the population.
Thus this requires a high level of interaction between the company and the customer which is the base of one-to-one marketing.
Why Is One-To-One Marketing Important?
In this interwoven digital and physical channels world, businesses need a customer experience strategy where stores/branches/restaurants and digital channels coexist and complement each other.
Marketing teams need to build a cohesive, real-time view of customer context to drive seamless, cross-channel personalization.
With each new brand comes more and more marketing messages that drown consumers in a sea of forgettable content.
As mentioned above, the last thing you want to do is join this sea by sending batch-and-blast emails. This gets to the core of why one-to-one marketing is so important.
Start Collecting Customer Data
The foundation of any one-to-one marketing program is customer data. You need to understand your customers so well that you know what they need, and when they need it.
If you want to build out real-time communications, you’ll need to build your databases first.
Market research can be used to learn more about the audiences who visit sites/apps and view ads.
Maintaining a customer database, having one system communicate seamlessly with another, tracking each customer’s contact with the company, making the operations responsive and flexible, and assigning responsibility for maintaining customer relationships across divisions can be daunting tasks.
But the benefits emanating from a successful implementation of relationship marketing should justify the investment of time and money in the endeavor.
By relying on historical and behavioral data, you can keep creating more personalized offers, upsells, and messaging, thereby forming brand evangelists who spread word-of-mouth marketing and likely have a high lifetime value (LTV).
Companies are finding more effective ways of connecting individuals to products. The newest trend? Personalized marketing.
Personalized marketing are campaigns tailored to a consumer’s interests and demographics — by leveraging data and digital technology, a marketer can target and tailor ads that will be extremely relevant to the consumer’s interests, and almost guarantee a sale/conversion.
To achieve engaging and effective personalization for 1:1 marketing, they need to go a step beyond reacting to customer actions in real-time—they need to be proactive and predict what those actions will be.
The concept of one-to-one marketing first gained attention in 1994. Personalization creates greater customer loyalty. And a better return on marketing efforts.
The one-to-one marketing approach is almost as old as commerce itself.
In the past, owners of a general store would take a one-to-one marketing approach.
If you’re going to provide personalized marketing, you first have to understand the person.
The company must locate and contact a fair number of its customers directly, or at least a substantial portion of its most valuable customers.
It is critical to know customers in as much detail as possible. The information should contain names and addressable characteristics and their habits, preferences, etc.
The company should recognize the customer at every contact point, in every medium used, at every location, and within every division of the company.
So, the first step in implementing one-to-one marketing is gathering as much data as you can about as many customers as you can. We’re talking more than contact information.
This helps you stay strong in your core group and expand to other groups.
Thus, one-to-one marketing, wherein you are interacting with the customer, will help you identify your prospects and your future customers.
A study of 1,500 U.S. consumers from Marketing Insider Group and OneSpot found that 78% of people are more likely to purchase when the brand provides relevant content, 50% would pay more for a product if they received a personalized experience.
It can increase customer spending by up to 500%. However, it will all depend on the social and behavioral data you collect and how you are willing to use it.
In short, it will eliminate the use of expensive media and promotion to give you a direct communication channel to your customer.
This lowers the cost of resources and helps increase overall sales.
Is there something all of your repeat customers have in common?
Segmentation takes personalized marketing one step further by creating different groups of customers, prospects, and partners and communicating with them differently.
Use the customer data and behavioral observations you’ve collected to group your customers by these motivations and values.
Now, tailor your marketing campaigns to only deliver the most relevant messaging and offerings to each segment.
Currently, many SMEs are using Google Tools to perform their company research — Google Tools such as Customer Barometer and Google Trends.
Various tools are available to identify potential customers relating to the products and services. It will go beyond comparing one type of customer to the others.
Interact With Individual Customers
Success won’t happen overnight. Additionally, customers demand quick and direct answers from employees and representatives. They don’t want to search for answers.
Personal preferences and tastes change over time. This means your marketing strategy will be in continual flux. Keeping up with changes in attitudes and styles will take resources.
But if you have the right tools, it won’t be too difficult.
The company gets smarter with each interaction with the customer and becomes more valuable to him.
The customer tells the company of some needs, customizing its product to meet them.
Every interaction and modification improves the company’s ability to fit the product to this particular customer.
Eventually, even if a competitor offers the same type of customization and interaction, the customer will not enjoy the same level of confidence without taking the time to teach the competitor the lessons the company has already learned.
Your most valuable customers are the ones who buy your products again and again. According to Harvard Business Review, it costs about 5 to 25 times more to acquire new customers than to upsell existing ones.
And existing customers spend up to 67% more. This makes one-to-one marketing for customers incredibly important. Reward that loyalty by building out a membership program.
Customize Products, Services, And Messages To Each Customer
Now that you have a better understanding of personalized marketing, you can get creative with positioning your product, marketing campaigns, and customer experience.
In this final stage, you might find yourself needing to adapt your marketing behavior to meet each person’s individual needs.
Let your newfound customer data guide you to connecting with leads and consumers using the specific language, channels, and timing you already know will resonate best with them.
Like Tom Hanks and Meg Ryan, you’ve got mail. In fact, we’ve all got mail. In the U.S. alone, 85% of adults and 78% of teens send or read email.
One of the best ways B2B and B2C businesses have cut through the clutter is investing in personalization.
Segment your email database to deliver different content to groups or individualize. This can be done using a tool like MailChimp, Marketo, and Hubspot.
These broader, top-level groups can allow you to tailor your content and delivery.
The Hubspot blog is split into sales and marketing, and while I’m sure Hubspot knows more detailed information, the separation is useful for the end-user.
You can start with the top-level segments like this, and continue to add in more information as your capabilities allow.
Using names is an early step, and purchase history should be fairly easy too, but you’ll have weather behaviors before too long.
One-to-one benefits are provided that make shopping cheaper or easier.
Seventy percent of millennials want to let retailers track their browsing and shopping behaviors in exchange for a better shopping experience.
Seventy percent of millennials are frustrated with brands sending irrelevant marketing emails and prefer personalized emails over batch and blast communications.
By 2020, 51% of consumers expect that companies will anticipate their needs and make relevant suggestions before making contact.
And triggered emails have a lasting impact. Visitors who receive triggered emails sometimes engage months after an email has been sent.
Roughly 18% to 23% of engagement happens after the 24-hour mark.
Automating your email strategy based on the customer journey delivers relevant information to your customer at the right time.
Your marketing segmentation and keyword research can reveal consumer intent. You’ll have to tailor PPC advertising to make ads more relevant to the user.
Real-time events will also provide an opportunity to personalize further. Retargeting display ads can re-engage people who have visited your site and bounced.
These ads are displayed on other sites throughout the web.
Even after leaving that website, that cookie enables brands to serve ads to users across the internet. On average, only about 2% of traffic converts on the first website visit.
SMS or text messaging is about as one to one marketing as you can get. The response rates or open rates on text messaging campaigns are off the charts. Our marketing strategy is heavily reliant on good SMS reminders and follow-ups. No one goes anywhere without their phone nowadays — it’s an extension of self, so it doesn’t get more personal than that.
SMS marketing is still relatively new, but it grew nearly 200% between 2015 and 2017.
Despite the rise in messaging apps like Facebook and WhatsApp, the vast majority of smartphone users (94%) are still sending texts.
Consumers opt-in using a distinct shortcode to receive updates, discounts, reminders, and alerts, similar to subscribing to an email list. SMS can be a super powerful retention tool.
You can personalize a website for repeat visits using an accounting system that can encourage purchasing behavior — think of consumer sites, like Target or Amazon, that tailor offerings when you visit their website.
One of the simplest current personalization methods, as social networks do the hard work behind the scenes. Retargeting ads and sending personalized followups messages are part of a smart marketing strategy.
A variety of targeting options are available, including location, profession, age, gender, interests, or behavior.
Examples Of One-To-One Marketing
One-to-one marketing isn’t just for the digital world.
The following example shows that enterprise-level marketing isn’t only about cutting-edge software and multi-million dollar initiatives.
Sometimes, adding a thoughtful and personal touch can go a long way in establishing trust and, eventually, sales.
Coca-Cola created a unique personalized marketing campaign with its “share a coke” campaign to reach more millennials.
This marketing strategy consisted of having each bottle of Coke stamped with popular first names.
This campaign ended up going viral, with over 12 million media impressions and a 7% increase in young adult consumption.
Grammarly sends unique and personalized emails generated from their user’s data. The weekly report shows users’ improvement in productivity, vocabulary, accuracy, and more.
The weekly report reminds users how they can benefit from using their premium version.
Customer Relationship Management Strategy
One-to-one marketing does not apply to all companies, but it is only applicable to companies with an extensive customer base.
This is because one-to-one marketing requires a high investment in terms of the database which has to be stored.
This investment comes in server requirements, data maintenance, and warehousing costs.
It is one thing to train the sales staff to be warm and attentive and identify, track, and interact with an individual customer and then reconfigure product or service to meet that customer’s needs.
Relationship marketing is grounded in the idea of establishing a learning relationship with each customer, starting with the most valuable ones.
The Future Of Personalized Marketing
The future of one-to-one marketing has arrived. The principles of one-to-one marketing go back to the days of the general store owner.
They remembered details about each customer’s preferences. Each time a customer visited, they received a personalized experience.
The owner simply remembered what the customer liked. It was simple but effective. Over time that personalization faded.
However, personalized 1:1 marketing is making a comeback with today’s technology.
The predictions in “The One to One Future” have come true. Technology has given marketers the ability to deliver a personal experience.
The same experience the general store owner once delivered. Now it’s delivered to millions of individuals every day.
One-to-one or relationship marketing means being able and willing to change one’s behavior toward an individual customer based on what the customer tells the company and what the company knows about that customer.
So now that you’re well-versed on the ins and outs of one-to-one marketing and convinced of its advantages, we hope you’ll take our honest recommendation to try it out for yourself.
We are here to help you learn. Feel free to contact us, and we’ll help walk you through it.
And feel free to check out Kennected, and let’s find out if we can get your personalized marketing campaigns started.