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When e-mail was first introduced as a viable marketing and communications vehicle, organizations used it to send mass messages to large databases of contacts. It was a fast, cost-effective tool. Since then, not only has the technology improved the audience dynamic and regulatory landscape has changed requiring marketers to update their approach to this medium.
Audiences today favor demassification and personalization of the marketing messages they receive. Demassification refers to the process of breaking down the mass market (those large lists of contacts) into focused, segmented groups based on preferences, lifestyles, purchasing trends, values and priorities?to name a few. The focus has shifted from a "one size fits all" model to content that is relevant and specific to the intended recipient.
Personalization commands the user's attention with tailored messages and products. It builds familiarity by utilizing consistent templates that employ a similar "look and feel" to what the end user is used to seeing. These attributes help establish a bond with the recipient that will, if executed correctly, promote loyalty through increased customer service.
Incorporating personalization into e-mail marketing campaigns increases response rates, instills trust in the organization and the messages it sends and builds a relationship with the end user that encourages them to become an active contact.
With all the advantages to this tool, why aren't more marketers using it? Most e-marketers do use personalization on some level whether it be using the first name in the message greeting or sending diff erent messages based on geography or membership status. The most successful marketers work with their e-mail service provider (ESP) to delve deeper into their database metrics and build campaigns that uncover the essential information needed to personalize messages effectively. The challenge to successful personalization is availability of data, time and cost to collect useful data and understanding the technical aspects employed by ESPs to personalize campaigns.
The purpose of this paper is to review general concepts behind personalization, further investigate its advantages, discuss the challenges to personalizing campaigns and provide solutions to overcome the challenges.
DEMYSTIFYING THE CONCEPT OF PERSONALIZATION
A simple Google search provides many documents written by marketers that give definitions of personalization including:
- The process of gathering user-information during interaction with the user, which is then used to deliver appropriate content and services, tailor-made to the user's needs. (Source: Personalization of Web Services: Opportunities and Challenges, http://www.ariadne.ac.uk/issue28/ personalization/)
- Building customer loyalty by building a meaningful one-to-one relationship. (Source: Doug Riecken. "Personalized Views of Personalization." Communications of the ACM, 43(8): 27--28, August 2000.)
While the word choice varies, the concept is the same?building customer loyalty and satisfaction by gathering and using data tailored to the customer's needs, preferences and values. Online vendors frequently use this concept. If you visit Amazon.com and look up fitness DVDs with or without purchasing them, the next time you visit the page you will see Amazon has automatically recommended other fitness DVDs based on your recent search. You will also receive a personalized confirmation page if you purchased a DVD with additional items related to your search. Personalization occurs in diff erent ways in an e-marketing campaign. Some ways include:
- List segmentation ? dividing marketing lists based on pre-determined factors to create targeted messages to each segment.
- Content ? tailoring the text of the message to fit the list segment.
- Subject line ? creating a subject line that is personalized to the recipient, grabs their attention and increases the likelihood they will read the message.
- Address line (i.e. Dear [Insert name],) ? including the recipients first name in the greeting.
- Signature (insert a name and personal signature) ? including an electronic signature from the person sending the message.
- Type of message ? a recipient may sign up or be qualified to receive certain publications such as e-newsletters or ezines. Segmentation of the distribution list is a key component of personalization. Many organizations purchase or build marketing lists that include hundreds or thousands of names from diff erent backgrounds, interests, professions, etc. Dividing, or segmenting, the list by pre-determined factors will help guide the development of a personal message.
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