December 27, 2022

Language Personalization Can Boost Revenue By 40%

Personalization Done Right Can Boost Revenue By 40%

Marketing has long been forced to rely more on art than science. Creatives make their best guess at the words or turn of phrase that will drive customers to click, call, or buy. Yet one size does not fit all when it comes to messaging. A hit with one customer might be a miss with another. That’s why brands need to leverage language personalization in their marketing.

In the webinar, Personalization Can Produce 40% More Revenue. Motivation AI Can Help, Persado’s Nathan Kim, Senior Product Strategy Manager, and Bernie Goldberg, Senior Product Marketing Manager, discuss how language personalization leads to more effective messaging and improved bottom line. Here’s what they said.  

Personalization–marketers’ holy grail 

Personalization—or the act of tailoring communications or experiences to customers based on insights about them—has been a holy grail for marketers for the last decade of digital transformation. 

It’s easy to see why. Personalization done right can lead to huge benefits for brands. A McKinsey survey found that more than 75% of customers would purchase from a brand, repurchase from a brand, and recommend a brand when personalization is used correctly. 

“Not only does this mean a better NPS score and strong customer loyalty, but also 40% more revenue just from more effective, personalized marketing tactics,” Goldberg says. 

On the flip side, a Gartner survey of more than 2500 marketers found that brands risk losing 38% of customers due to poor personalization efforts. And a Twilio report found that 45% of customers are less likely to shop again with a brand after a non-personalized experience. 

“It’s important to recognize that the personalization mandate is not coming from within a brand or organization. It’s the customer saying they want the brands they support to deliver a relevant, personalized experience for them,” Goldberg says. 

Personalization is easier said than done

Brands have made significant investments in elevating their personalization efforts to meet customer expectations. But personalization efforts have varied widely in their sophistication and effectiveness. Another Twilio report found that 76% of companies say they provide excellent personalization. However, 52% of customers disagree, revealing a divergence between the effort put into personalization initiatives and the effectiveness of those programs. 

Causes of this divergence are: 

  • Data and technology gaps: Brands often don’t have the data or technology to effectively target customers, causing them to abandon personalization efforts. Plus, relying on third-party data is likely to leave brands with significant knowledge gaps given the death or diminishing impact of the “cookie.”
  • Privacy concerns: Those with the useful data might find it unusable due to privacy protections (e.g., GDPR) or the privacy expectations of customers. 
  • Inability to scale: Brands can only deliver personalized experiences in specific channels such as email or on their website, leading to inconsistency across channels which limits the impact of a personalization initiative.
  • Non-differentiated experience by segment/channel: Brands have trouble segmenting customers in a relevant way, making it hard to provide them with differentiating experiences across the channels and use cases throughout the customer journey.

Here’s how to bring effective personalization to life

Despite today’s challenges, effective personalization that creates tailored experiences is possible. Here’s how: 

Collect first-party data: First-party data is information gathered from your customers, subscribers, and site visitors when they interact with your website or marketing channel. This data is more relevant, convenient, and superior to third-party data. First-party data also solves the challenges related to data privacy, as customers have willingly decided to share it with you. 

Leverage artificial intelligence/machine learning (AI/ML): AI and ML can augment workflows by extracting insights from the data you already have and delivering new experiences at scale across channels—without the need for human involvement at every turn. Plus, AI continuously responds to customer preferences to evolve experiences over time. 

Persado language personalization motivates action

Persado empowers users with the insights they need to make better decisions about how to motivate customers to action. All too often, marketers must guess which words and creative choices might resonate with customers, but Persado combines first-party data and AI to remove this guesswork so creatives can be more productive. The full webinar Personalization Can Produce 40% More Revenue. Motivation AI Can Help reveals just how Persado activates this first-party data and intelligence to deliver personalized experiences that boost revenue. Check it out here.

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