The Payoffs of Personalization

Delve Goes Deeper: Retail Marketing

Discover the three areas of opportunity to drive greater personalization and convert ideal consumer segments.

This is the third post in our Retail Marketing series, dedicated to helping brands improve their marketing ROI and accelerate revenue growth by identifying and converting their most profitable audience segments.

As discussed earlier in this series, by taking a continuous, data-driven approach to identifying and converting the ideal consumer segments, the payoff of personalizing the right offer at the right time can be significant and measurable. We suggest focusing on three areas of opportunity: the full-cycle customer journey, conversion optimization, and value optimization.

First, retailers should consider expanding their campaign efficiency efforts beyond customer acquisition to include a full-cycle customer journey lens. For marketers, this means improving return on ad spend and marketing ROI by focusing on existing customers, too. By capturing and analyzing omni-channel attribution data throughout the customer lifecycle, retailers can deliver personalized offers to buyers at the right time to improve return on ad spend and marketing ROI.

Second, retail marketers should also incorporate advanced analytics to improve conversion optimization. The idea here is to focus on both demand source and demand quality. 

“There’s more data out there than ever before for retailers to do their homework and figure out where their customers are when they’re online. Yet for whatever reason, most retailers don’t push the envelope enough,” says Alp Mimaroglu. “Once they’re profitable, they stop being as granular. They tend to deprioritize segmentation and personalization in favor of scaling within the target audience they’ve already identified.” 

By understanding your demand sources, you can target your marketing mix to those channels that generate the most revenue and profits. By understanding demand quality, you can target audiences with high conversion potential to stretch your marketing budget and improve return on ad spend (ROAS), cost per lead (CPL), and customer acquisition cost (CAC).

And thirdly, marketers looking to make changes like these can focus on one or more of the following marketing tactics to improve conversion and lifetime customer value:

• Platform Audits
• Audience Suppression
• Conversion Probability
• Hyper-local Targeting
• Bidding Automation
• Attribution Modeling
• Dynamic Creative

We’ll DELVE deeper into how each of these marketing tactics drives greater personalization for the remainder of our Retail Marketing series.

Ready to take your ads, and your business, to the next level? Get in touch with the DELVE team today.