Email marketing may continue to be the channel of choice for UK consumers for receiving offers, content, incentives, and rewards but simple personalisation no longer cuts it; marketers must try get under the skin of individual consumers – and deliver bespoke offers and recommendations – if they really want to succeed.
So says a new Econsultancy report, in partnership with Cheetah Digital, which reveals that Brits actually interact with a brand on multiple channels, often unpredictably.
In the value exchange economy, UK consumers are rewarding brands that make personalisation a priority, with more than half saying they will trade personal and preference data to feel part of a brand’s community.
At the same time, there has been nearly a 60% increase in UK consumers who feel frustrated with a brand whose personalisation initiatives do not recognise their unique desires and needs.
First and foremost, marketers need to create a strategy that involves getting closer to their customers. Customers are saying: “We’re happy to provide our data and sign up to your marketing programme in exchange for offers sent directly to me that are relevant.”
However, consumers are influenced by a multitude of factors when making purchases. Brands need to prioritise their value proposition to be front-and-centre when a customer is ready to purchase. Some 41% of consumers still hunt for the best price when it comes to buying, but others value convenience (17%), fitting their style (26%), and expecting brands to behave responsibly (16%).
When it comes to brand loyalty, the cheapest price point is only one factor. In the current environment, Brits are loyal to brands that create emotive bonds by fostering community, recognising their customers as individuals, and delivering bespoke offers and product recommendations that reflect this.
Even more, 61% of UK consumers are willing to pay more to purchase from a trusted brand, whereas only 53% of Spanish and 40% of French consumers are.
And there has been an 86% increase in consumers who want suggested products and services based on their preferences in return for their loyalty compared to only a 56% increase globally.
When done correctly, loyalty programmes govern the value exchange between brands and consumers, and not just for a single interaction but for direct engagement over the customer lifetime. With contextually differentiated, personalised experiences, they can be the conduit for the one-to-one relationships that build customer lifetime value.
The report concludes: “The majority of consumers are willing to trade personal and psychographic data if you offer the right value exchange, and especially if you promise to keep that data safe and private.
“The mechanics of that exchange could be as simple as offering a discount, a reward or a chance to win a prize. But when that transaction is consummated, brands are able to deliver on the expectation of a truly-personalised experience such as better content, offers and product recommendations.
“More importantly, in this age of consumer empowerment, marketers can now meet the consumer where they are, in any channel, in near real-time, including in-store. The value exchange economy is roaring to life and it’s fuelled with first- and zero-party data.”
Data issues ‘stifling efforts to improve personalisation’
Personalisation battered by unactionable customer data
Dear [name in here]: Tech go-slow ‘hits personalisation’
Covid online boom fuels quest for better personalisation
Personalising all touchpoints ‘can boost ROI to 400:1’
Decision Marketing at 10: The next 10 for digital tech
Personalisation set for the scrapheap, Gartner predicts
Effective personalisation? You’re more likely to see yeti