Outstanding advantages that Personalization brings to businesses
According to Statista, revenue from the B2C model in Vietnam has reached 11.8 billion USD and is forecast to continue to grow strongly, reaching 29 billion USD by 2025 with a growth rate of 20% per year. To achieve this goal, Personalization will play an important role, bringing many practical benefits to businesses.
Increase sales and conversions
When customers feel personalized in their services and products, they feel satisfied and tend to return to use it again and again. This not only helps retain customers but also boosts transaction conversion rates. Personalization creates a deep connection, helping businesses encourage customers to shop more often. Therefore, this strategy is an important factor in increasing sustainable revenue.
Customers increasingly want a shopping experience that is unique and tailored to their preferences. They are willing to provide personal data to receive messages and services that are more personalized and relevant to their needs. By personalizing the experience, businesses not only satisfy customers but also create unique value, affirming the brand. From there, satisfaction will lead to loyalty and long-term connection.
Building customer loyalty
In today’s highly competitive environment, creating a personalized product or service is key to retaining customers. When customers’ needs and wants are accurately met, they feel engaged and are less likely to switch to a competitor. Personalization helps businesses create lasting relationships, increase long-term customer retention, and create a distinct competitive advantage.
With the power of Personalization, businesses can reach the right target audience and accelerate the transaction process. Sustainable customer relationships will help increase revenue and motivate businesses to overcome challenges, moving towards long-term success.
Personalized Marketing Strategy Lessons from Famous Brands
Personalized marketing strategies are increasingly becoming a key factor for famous brands to achieve success. Let's explore valuable lessons from brands that are at the forefront of applying this strategy.
Balancing customer data and privacy
Personalized marketing strategies can help businesses attract and retain customer interest, but if not done carefully, they can backfire. Target’s story illustrates this well, as the company used purchase data to predict customer needs, but it also made some customers feel uneasy about being tracked too much. The key lesson, therefore, is to create personalization without invading consumer privacy. Brands need to ensure that personalization does not become an intrusion into customers’ lives, especially in an increasingly privacy-conscious world.
Target creates a personal ID for each customer at the time of their first purchase to track their behavior and predict their needs. In the case of pregnant mothers, Target uses purchase data, such as purchases of stretch mark cream or large handbags, to predict and market products accordingly. However, this caused a problem when a man discovered his wife was pregnant through Target's marketing campaigns.