When marketing teams are forced to use “crappy” data, they risk sending inaccurate or ineffective messages to customers and prospects. When you consider that personalization is a vital technique for businesses looking to draw customers’ attention, this is especially problematic. In fact, customers tend to respond more favorably to emails tailored to their preferences, and brands with mature personalization strategies see increases in revenue.
After all, most customers appreciate when Amazon emails a useful purchase suggestion or when Netflix understands their viewing preferences better than a spouse. These companies — and other personalization-first brands — use behavioral analytics to scrutinize customer behavior, develop personas and present offers with a high probability of converting into sales or improved user experience.
In working with clients across the board at my marketing agency, I’ve found that the art of personalization isn’t as easy to master. According to Experian, the majority of businesses say inaccurate data will impact their ability to provide a great customer experience.
5 Ways To Improve Personalization
Lacking insightful data is tough for any business trying to keep up in the digital age. According to Salesforce’s “State of the Connected Customer,” 73% of customers “expect companies to understand their needs and expectations,” and 62% “expect companies to adapt based on their actions and behavior.” However, you don’t need stellar data resources to practice personalization.
Personalized marketing is nothing new (after all, it’s nice when your favorite restaurant’s sommelier knows you enjoy Super Tuscans and suggests one to try). However, automated personalization now occurs much earlier in the sales process than it used to. If you have crappy data, there are still valuable best practices you can adopt to personalize your communications:
1. Place your non-crappy data sources in an inventory.
The best place to find trustworthy contact and behavioral data is perhaps your transactional database (think QuickBooks or another accounting platform). Here, you can likely find email or postal addresses, customer or business names, and products or services purchased.
Make sure you focus on recent transactions, as data from the last year is more likely to be accurate. Besides this, focus on records with complete contact information and see if you can obtain any proxy for profitability (if so, consider also assigning a profitability decile). After all, there’s no point in spending marketing time or dollars to acquire low-profit business.
Look for data fields that show how much you know about customers’ needs. For example, if you run a computer servicing business, note which customers use Macs and which use PCs. If you have email addresses, you can get more information from FullContact, FreshAddress, Datanyze or Clearbit. Google Analytics also offers behavioral data, such as how frequently customers visit your site, webpages of interest and more.
2. Use your intuition to build personas.
If you still can’t summon much confidence in your data, don’t worry. Create your own data by shaping personas from disparate pieces of accurate information and your intuition. Form a narrative around these scraps by answering some simple questions:
• What is this person’s pain point?
• What makes this person happy?
• What makes this person feel successful?
• How can our company help?
Creative teams love this type of information — it helps them craft offers to persuade and engage audiences. You also don’t need clean data to do this (though it helps).
3. Say 'thank you.'
You’ll know this right away: Every transaction in your sales database represents a customer. With that simple fact, personalize your communication using an appreciative tone. You can also send communication from the manager of the store that customer visited or the employee whom the customer spoke with. Likewise, you can probably find out where customers like to do business, where they live and which website pages interest them most. All of these factors can help personalize your messaging.
Tie in the benefits of your product in a personal way. This could mean appealing to emotions (perhaps helping your audience feel or look better). And when customers visit your website, use cookies to trigger dynamic content based on the pages they visit. From these seemingly dull instruments, you can scratch out a convincing image of who your customers might be and which offers could interest them.
4. Remember that all you need is a single piece of personal information.
The quest for data wealth can be overwhelming — you want to know everything about your customers all at once. But even a single piece of information can be illuminating.
We recently helped a bank identify which of its personal banking customers owned a business. To do this, we scoured LinkedIn and company websites, verified contact information and assessed suitability for a business banking offer. Because this extra step individualized customer messages, it added much more credibility to the marketing campaign: “You trust us with your personal banking. We can help (insert business name) succeed, too.”
Is this tactic too intrusive? Not necessarily: Salesforce’s study also suggests that 62% of millennials and Generation Zers are okay with companies using relevant personal data in a “transparent and beneficial” way.
5. Don’t be afraid to take risks.
People are understandably nervous around data. Remember that you can afford to take calculated risks in the quest for better personalization. Simply make sure you act ethically and comply with privacy laws.
For example, if you have more than 50% confidence in the personalized content you use, go with it. Perfection is impossible when dealing with marketing data, so it’s okay to be wrong with a minority of prospects in order to move your revenue and market share needles forward.
With customers increasingly expecting personalized communication, you can’t afford to stay frozen in fear. According to the Salesforce study above, half of millennials and Gen Zers usually ignore messages from brands unless they’re personalized — that’s 50% of connected young people shut out of your business before they get a chance to learn more. Don’t let your data insecurities stand in the way.
