Personalization is the biggest digital marketing technique brands are mastering today. A study from The Institute of Direct and Digital Marketing shows that 82% of marketers using personalization have seen an increase in open rates, 75% have seen a higher email click through rate, and 56% have seen an increase in sales.

More than that, customers prefer brands that can recommend to them products and services tailored around their individual preferences. According to Digital Marketing Magazine, 62% of customers buy more from websites that offer personalization, while 27% actively look for personalized offers when shopping online. According to IDM’s study, 38% of marketers using personalized campaigns see an increase in returning website traffic.

Still, creating personalized customer experiences is no easy task. A company that wants to personalize its content has to collect and aggregate demographic, social, and purchase data, and must have the right tools to make sense of that collected data.  

Third party data sources like social media, allow marketers to collect customer data such as demographics, interests, location and spending capacity for each one of their customers. By combining this data with buying and browsing history, marketers can end up having rich customer identities that they can use to hyper-personalize their marketing campaigns. See how personalization brings results to our users. 

A necessary requirement though, is ensuring customers to consensually give their personal information, and permission to use it, to companies. Customers want a good reason to share their personal data and most importantly, they need to trust the brand with their data.

Offering a clear value to the customer

According to Salesforce, 63% percent of Millennial consumers and 58% of Generation X consumers are willing to share data with companies in exchange for personalized offers and discounts. This shows that if customers see a clear benefit to giving up their data, many of them are willing to share. Other popular options that prompt consumers to share their data are personalized in-store and online experiences as well as personalized product recommendations.  

The insurance industry is also an industry that relies more and more on data to retain and find new customers. Research from Accenture shows that 48% of customers are willing to share personal data in exchange for lower premiums and 34% are willing to share to receive a better level of insurance cover.

Therefore throughout a range of industries, this remains true: even customers that are more protective of their personal information will be willing to share their data when the value of the exchange is clear.

Gaining your customer’s trust

Customers nowadays are far more tech savvy. This is a double edge sword for brands. On one hand, 85%  of customers know that data exchange can provide them with more targeted content, which means that they are far more likely to share their personal information.

On the other hand, customers need to know that their data is well protected and not exploited. According to this article, 70% of consumers fear that the data they share with private companies may end up in the wrong hands, while a research by Columbia Business School, showed that 75% of consumers were willing to share personal data with a brand they trust. So companies also need to be establishing brand trust with their customers by letting them know exactly what data they are collecting and also how they will be using that data. See how our GDPR complaint tools help you do this with ease. 

Another crucial element in building trust with customers is offering an opt-out option. Knowing that they can opt-out of communication with the brand at any time creates the sense that the communication is voluntary. Even if some customers disengage at some point, the company manages to maintain a positive and respectful image.  

Curious about how Socital can help increase sales and brand awareness with personalization?

Contact us for a questions or start a free trail now.