How to personalise marketing without invading privacy

New Delhi: According to predictions from creative data company CreativeX, brands worldwide have “wasted” upwards of $73 billion on “digitally unsuitable” ads over the past three years. 

The company analysed more than 3.9 million ads, supported by more than $3.6 billion in ad spend, from 2021, 2022, and 2023 to arrive at the figure. 

For every marketer having a hard time explaining how they wasted precious marketing dollars, Vineet Bajpai, Founder & CEO at Magnon Group, has some advice for you. “Rely on personalised marketing.”

Making marketing personalised includes “tapping into emotions, curiosity, and bringing in relatability while moving at the speed of culture.”

Instilling confidence in the potential of personalised marketing, Bajpai shared some eye-opening insights. “Studies show that 80% of consumers are more likely to make a purchase when brands offer personalised experiences. This isn’t surprising, considering that personalised emails deliver six times higher transaction rates. 

Interestingly, advertisers don't need extravagant marketing budgets to achieve this. Utilising data analytics and customer feedback effectively can help even smaller businesses personalise their marketing.”

Moreover, certain companies using advanced personalisation report a $20 return on every $1 spent. Recommendation engines alone can drive a significant portion of viewer activity and revenue for businesses. Clearly, personalised marketing not only enhances customer satisfaction but also significantly boosts sales and brand loyalty,” quoted Bajpai.

Amidst increasing customer acquisition costs and ever-increasing competition in the market, brands can forge better connections with customers by integrating personalisation into their marketing strategy. 

As Bajpai perceives it, “Utilise data and insights to simulate the user journey and identify their pain points by visualising the gaps, obstacles or issues that each user faces at each stage and suggesting relevant products. This kind of personalised shopping experience boosts revenue, with brands seeing increased transaction rates and customer retention.

Personalisation also improves targeting, ensuring you contact customers when and how they prefer. This strengthens your brand’s reputation, as seen with companies personally reaching out to customers, creating lasting positive impressions. Ultimately, personalised marketing enhances lead generation, customer retargeting, and the overall customer experience, driving increased loyalty and a higher return on marketing investment.”

The question that still worries a lot of marketers is, “Can the effects of personalisation be measured using a metric to study the efficacy of a personalised campaign?” The answer is a resounding yes. 

Putting an end to enquiries about measuring the effectiveness of a personalised campaign, Bajpai asserted, “Businesses often track metrics like click-through rates (CTR), conversion rates, and customer engagement levels. Higher CTR and conversion rates typically indicate that personalised content resonates well with users. 

Additionally, metrics such as customer lifetime value (CLV) and return on investment (ROI) help measure the long-term benefits of personalisation. By analysing these metrics, companies can determine how effectively their personalised strategies are driving customer satisfaction and business growth. Over the years, we have realised personalisation isn't just a buzzword; it's a powerful tool that can significantly enhance user experience and loyalty.”

The listicle mentioning the benefits of employing personalised marketing could go on and on but you get the point, “Try personalised marketing.”

In the world of personalisation, access to quality data becomes the make-or-break factor in determining the success of every upcoming festive campaign.

However, customers expect personalised marketing without being stalked online. Addressing the challenge of delivering personalisation without invasive tracking, Bajpai emphasised an alternative approach. 

“Over-personalisation can feel intrusive; to ensure transparency, aligning with data privacy regulations like the India Digital Personal Data Protection Act 2023 (DPDPA) is extremely important. Thus, training marketers in ethical data-driven practices is imperative. By doing so, brands can offer personalised experiences without compromising privacy, fostering trust and strong customer relationships. When done right, customers often willingly share personal information with brands that offer valuable, relevant content in return,” said Bajpai.

Social media algorithms and personalised marketing face similar challenges. Algorithms adapt to user behaviour, while marketers aim to create tailored content. Both can miss deeper nuances or sudden cultural shifts. In the words of Bajpai, “balancing agility and cultural understanding is crucial in this ever-changing landscape.”

Wrapping it up, Bajpai spoke of the ideal scenario for personalised marketing, highlighting concerns around data privacy and regulations as customers become wary about how their information is being used.

“The ideal scenario for personalised marketing is when businesses deliver highly tailored content and offers that resonate deeply with each customer. Imagine a brand knowing your preferences so well that every interaction feels unique and relevant, leading to increased satisfaction and loyalty.

However, gathering and analysing vast amounts of data to understand customer behaviour can be complex and resource-intensive. There's also the risk of over-personalisation, where consumers feel overwhelmed or even creeped out by how much a brand seems to know about them. Balancing personalisation with privacy and comfort is the key to success,” concluded Bajpai.