My first major impression of the impact personalisation could have in marketing was back in 2014 when Coca-Cola launched its ‘Share a Coke’ campaign and I, along with most of the planet, started searching supermarket shelves for a bottle with my name on it.
The campaign took a very obvious approach to personalisation, and there were of course other examples that preceded it, but it’s success not only demonstrated the power of personalised experiences but also their potential to enrich consumers’ relationships with brands – and ultimately build loyalty.
20th March 2018
customer acquisition costs
by up to 50%, lifts revenues
by up to 15%, and increases marketing spend efficiency
by up to 30%.
Getting personalisation in marketing right, however, isn’t easy.
Although technological advancements have enabled marketers to make major leaps in personalisation in recent years, the key still lies in understanding an audience; reaching them in the right place, at the right time; telling a story they can relate to because it reflects their lifestyle or core values; meeting their existing needs, as well as predicting their future ones.
There is also the upcoming introduction of GDPR to think about. It’s roll out will drive some essential developments in data management, but it will also create new challenges for marketers and brands who are looking to utilise data for personalisation.
So, is personalisation really worth all the effort?
A report by McKinsey & Company suggests that personalisation reduces customer acquisition costs by up to 50%, lifts revenues by up to 15%, and increases marketing spend efficiency by up to 30%- so yes, I’d say it is. Definitely.
It will be interesting, especially post 25th May, to see which brands’ can have an impact - equivalent to that of Coca-Cola in 2014 - with their future personalisation strategies... There’s no doubt it will be the brands that harness technological innovations, quickly adapt to the changes within their audiences, and reassure consumers that their data is secure - but additionally, and possibly most importantly, it will be the brands who leverage personalisation to provide the most value to their customers, as well as themselves.
Matthew Hepburn, Coca-Cola History: The Share a Coke story
McKinsey & Company: Marketing’s Holy Grail – Digital personalization at scale