Personalization is hardly a new topic to marketers. Direct marketers have been using it for years, especially in mail marketing. Some has been good and effective, some has been silly or downright awful. You’ve seen it all. Even reasonably well done, personalization does work. The carry-over to email marketing is obvious. According to the CMO Council:
• Spending on direct-mail advertising (an integral part of personalized communication applications)shows no sign of abating; investments by marketers totaled $58.4 billion in 2007, and that figure isexpected to increase to more than $70 billion by 2011 (source: Winterberry Group).
• More than $3 billion was spent in the U.S. alone on e-mail marketing (source: EmailInsider).
• Yet, an overwhelming 56 percent of marketers believe personal communications out-performs traditional mass market delivery; digital, database-driven channels (email, web, contact centers)reportedly offer the most upside potential for engaging in customized communications (source:The Power of Personalization)
What exactly does personalization accomplish? According to the report it improves customer retention and loyalty by increasing conversion, close and action rates and
![](http://2.bp.blogspot.com/_OhWWsR1afKg/R9Ahkrvh1EI/AAAAAAAAAXU/imSHys2HtiA/s200/personalized+sizn.jpg)
I define "front end" as all the activities that lead up to a sale--all the things we do to attract the attention of customers and put them in a frame of mind to take action. The action can be a visit to a website, a request for information, sale of a product or service, or in this case support of a political candidate.
![](http://3.bp.blogspot.com/_OhWWsR1afKg/R9AiD7vh1FI/AAAAAAAAAXc/l6uk-tA_3Y8/s320/personalization+chart.jpg)
In spite of its effectiveness, marketers are not making extensive use of personalization according to the survey (download the report from the CMO Council). Not because it doesn’t work, but because their organizations and their back-end systems are not with the program.
So tomorrow, the back end of personalized marketing.
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