Customer Relationship Management (CRM) was first introduced in the 80s of the twentieth century. Since then, the method of advertising based on customer wishes has significantly improved the gap between sellers and buyers.
CRM channels that are widely used today can be mentioned as Email, LiveChat, or Social Network. Through these channels, businesses can collect user information, purchase history to categorize customer segments.
Still, with the CRM approach, online advertisers have succeeded in identifying their target audience and offering them exactly what they need right now. However, after being attracted and clicked on the ad, customers still decide not to buy from you. Is the need, enough for the “gods” to buy goods or not? And if not, what could be contributing to faster buying behavior? Personalized Advertising is a powerful assistant that helps advertisers win the hearts of customers and motivate them to act.
From the spectacular effects on the growth of the business in general and the increase in conversion rates in particular, Personalized Advertising is gradually asserting its position in the flow of modern advertising. . Perhaps now, people not only consider Personalized Advertising a trend, but it has become a guide for online advertisers, thanks to the powerful help from the technologies of analyzing user data.
What is Personalized Advertising?
Personalized Advertising, also known as Interest-Based Advertising, is a powerful tool that helps to improve your ad’s relevance to users and increase your home’s ROI. advertisement. Personalized Advertising works by using online user data to target your target audience with more relevant advertising content, thereby simultaneously improving the user experience and the advertiser.
When thinking about Personalized Ads, focus on these 3 phrases:
1.”Based on interest”
2.”Use of user data”
3.”The advertising content is more relevant”
The purpose of personalization is to use data to make it easier for customers to find and buy their favorite products, in a familiar way, and to buy whenever they want.
The core elements of Personalized Ads are The right people (target customers), the right time (demand for the product), the right content (Content), the right form (Design and Channel).
From a Personalized Advertising perspective, a client has two expectations of being acknowledged and mastered.
Desire to be acknowledged
Customers often aspire to express themselves more. They want to hear, see, even be cared for in the way they like, get used to, and most convenient. Unfortunately, this secret desire of customers has not been properly, fully, and promptly responded to by businesses.
Desire to be master
Customers now have higher requirements, such as participating in contributing and changing business value. This urges businesses to change and optimize their strategies to meet the best customer experience.
For example, a few years ago, milk tea defaults to full iced sugar. But what if you are a dieter and still crave milk tea, then what if you easily get a sore throat and cannot drink without ice. Understanding this problem, the milk tea shops decided to change (even if it took quite a while, many years). Currently, all milk tea shops allow us to choose tea with 30% sugar, no ice or all kinds of proportions, toppings according to taste and needs. This really works, can’t you still sell milk tea to people on a diet?
The role of personalization
Help businesses set up the right messages and conversation methods to reach target customers
If in the past the message was one-size-fits-all, a brand’s message was communicated to everyone. But now, the needs of current consumers are extremely diverse, if businesses keep the old approach, they will become fuzzy and more likely to receive customer indifference. Only when the message is personalized to each customer do they become compelling.
Help businesses answer the question: “Why do consumers have to continue to use their products?”
A business must always create so many “Why?” (based on business positioning and strategy). These “Why” answers tailor messages to different customers. It gives brands many reasons to exist, makes consumers trust and feel that the brand is just for themselves.
Helping businesses save costs
Previously, when talking about customer segments, the market was only 10 – 15 segments, but nowadays, each brand can have hundreds of different customer segments. And each object has its own purpose. Therefore, personalizing the message helps the brand to properly target customers’ insights, creating the highest purchasing efficiency.
Helping businesses improve revenue
The bridge between revenue growth and advertising lies with customers. Thus, the application of personalization in advertising, the improved customer experience, the sales will increase.
Helping businesses increase attractiveness to potential customers
Information with the purpose of personalizing customers will be accessed through social networking status. From there, the messages from enterprises’ services to customers quickly increase the ability to attract customers interested in the products and services of the business.
Helping to increase customer satisfaction
Up to 64% of customers are satisfied with personalized shopping information from businesses. In addition, over 69% of customers are willing to provide personal information to receive recommendations on the most suitable products and services. It is easy to see that the trust and satisfaction of customers in the form of personalization of the experience is one of the driving forces to bring success and real value to the business.
Helping businesses Increase CLV – Value life cycle of customers
Customer Lifetime Value (CLV), ie the total revenue that a customer generates over his or her life cycle. That CLV value is determined by the customer’s loyalty to your brand. According to a report on user behavior from Harvard Business Review, up to two-thirds of shoppers continue to be loyal to the brand because they feel understood and shared. Products and services that meet the needs, requirements, and uses of customers, make sure that they will trust their choice and continue to experience in the next time.
Levels of Personalization (Personalization)
Before Big Data or AI developed today, personalization was only practiced at 4 levels.
- Level 1: Target a target audience based on a combination of needs or wants and a broad geographic location (country, region).
- Level 2: Target the target audience based on a combination of needs or wants and a more specific geographic location (city, province).
- Level 3: Target your target audience based on a combination of needs or wants, microgeographic location (zip code), and demographic information (age, gender, income, etc.).
- Level 4: Target your target audience based on a combination of needs or wants, microgeographic location, general demographic information, and personal interests (sports, tourism, technology, etc.) .
Currently, with the support of real-time data analysis technologies, personalization is opened up to 2 more levels as follows:
- Level 5: Targeting based on a combination of needs or wants, micro geolocation, advanced demographic information (political opinion, brand loyalty, type of vehicle, etc), specific interests (Genre of music, celebrity, …), and purchase intent (keyword search).
- Level 6: Target target customers based on a combination of needs or wants, precise geolocation (GPS), advanced demographic information, specific interests, purchase intentions, and models of Historical behavior (purchase history, voting participation, websites visited, etc.).
Practicing Personalized Advertising
Modern advertising focuses on the application and optimizes two levels of personalization: Level 5 and Level 6. So specifically, how will we practice Personalized Advertising? Advertising is one of the constituent elements of Marketing. So, in this section, we will apply the personalized practice of Personalized Marketing that includes 4 steps as follows:
Step 1: Humanity
In this step, focus on identifying customer segments. Need to learn about customers, collect data not only about geography and personal information but more importantly their interests and needs, then find ways to best meet these needs.
Customer identification can be done through face-to-face meetings, interviews, surveys or tools capable of analyzing user data: Telesales, Email, Live Chat, Social Networks, and data systems. Google data …
Advertisers can use pre-purchase history to predict future customer demand. Remembering a history of customer behavior needs to comply with laws and regulations.
Businesses should have a “sketch” of a potential customer portrait, as well as a definition of the target audience’s journey to become a customer. Always create a detailed customer history from knowing the business, ordering, purchasing process, and ending the behavior.
This collection is the “node” that every business should have in personalizing the customer experience.
Step 2: Classification
The next task is to classify customers in the segments into smaller groups based on two criteria:
- VCL (Value Customer Lifetime): Find out which group brings the highest revenue. Apply the 80-20 rule, 20% of customers bring 80% of sales, choose those who spend money on you a lot and evenly.
- Urgent needs, or aspirations: Select the needs customers feel most important from the data available in step 1 – Identify.
This classification will help advertisers have an effective strategy towards the customer group that brings the highest value, thereby saving unnecessary budget loss.
In addition, you should not forget the remaining groups, the groups that have not yet bought products may be facing some difficulties. Find out this difficult stuff and fix it. If customers find your product too difficult, take a lot of time, and still do not understand anything, sorry to not spend a campaign “planning knowledge” for these people.
Understanding each customer segment is important because when there is a collection of groups of audiences, businesses can make calls to action more accurately, more appropriately, and help refine strategies, optimized for their target audience.
Step 3: Interaction
Some of the main goals businesses want to achieve when interacting with customers online include:
- Attract new visitors through specific SEO by activities such as marketing, media advertising, leaflets …
- Create relationships with customers with the goal of generating changes, changes in business structure.
- Pay attention and give many incentives to customers who regularly use services and products at the business to encourage them to become loyal customers.
At this step, the advertiser needs to create an interaction with the customer but must meet two requirements: cost-saving and high efficiency.
Cost savings: To reduce costs in interaction, we should use tools that allow automated interactions such as Landing Page, websites, Email, Chatbot, SMS, etc.
High efficiency: To make the customer interaction effective, it is necessary to pay attention to the following four major issues: Content, Appearance and Time, and Channel.
- In terms of content: Two levels 4 and 5 of Personalization should be thoroughly applied to convey the message in a way that the target public is most interested in. What customers like, write that. If the customer speaks “language”, then write that “language”. If you sell Asian travel services, customers who like to go to Thailand will have the need to read the Content one way, but customers who travel to Singapore like to read different Content.
- In terms of appearance: It is necessary to optimize the interface of the ad page with an emphasis on CX (Customer Experience).
- About when: Depending on your media platform, choose times with high engagement rates. For example, with Facebook in Vietnam, some “golden” time frames have a higher level of interaction than usual: 6:30, 10:30, 12:30, 17:30, 22:30.
- About channels: Choose channels that match your public group.
Example: You want to advertise a drawing board item to a young public group, who are illustrators. Use social media channels such as Facebook, Instagram, Youtube, or Devianart to advertise, because these are the platforms these groups frequently visit and love the most. Or Tiktok is also a great choice while Zalo is terrible.
Step 4: Customization
This is an advanced step in the Personalized Advertising strategy because it does not just stop at understanding customers, meeting their perceived needs, but also satisfying their owning needs.
The customization here is a variation on your product side or customizing some features on the sales page. From there, allowing customers to choose and contribute the values they want for the brand. The advertiser can then emphasize this customizing value in campaigns.
There are two types of customization to products:
Core Product Customization
- The customer chooses the characteristics of the original product to best suit him or her.
- If you have a Youtube channel for movie reviews, sometimes let a group of active fans choose, vote for the next movie that you will rate. They will be happy to contribute and enjoy.
Customizing the supporting products (Supporting Product)
- If it is not possible to customize the original product, create the bundled products, and let the customer choose these products.
- You want to run game shows, give gifts on social networks. The original product that you will use as a reward is a book. You can also add products that come with books such as Bookmarks, Key Chains, Posters, etc., and let customers have a choice to write on the product or what to get if winning.
The core of Personalized Advertising practice is Big Data and Customer Experience.
Optimize personalized advertising plans
The general mentality of customers wants to have a good experience when coming to a business rather than feeling a personalized experience.
- A few tools should not be overlooked: design, A / B testing, and usability improvement. Because collecting feedback on customer experience is a stepping stone to the appearance of personalized strategies. And when determining which business needs to optimize conversion, personalization is really necessary now.
- Try to detail the customer journey for each audience by creating customer segments on the website.
- Define KPIs to measure effectiveness and make it easier to measure sales and conversions over a given time period, and don’t forget to set goals for engagement and conversions.
Recalling the four core elements of Personalized Advertising are The right people – the target audience; The right time – When the market and the customer needs it; The right content – Content; The right form – Design and Channel. Currently, the first two factors are the right person and timing that has been pretty well determined by advertisers. So only two eternal issues to focus on our content and form. So of these two issues, what is the easiest and most optimal for advertisers? That is the Content!
Content optimization and development should be based on the practical requirements and goals of the advertising campaign. Your campaign is ineffective, with many errors in Content. But not because the Content is not good, but is not suitable for the target audience. Another issue that needs to be mentioned is that nowadays, the type of advertising writing “hit quickly wins quickly”, going directly to product features, is becoming weak.
Storytelling as a destiny for personalized advertising. It makes it easier for customers to engage with your ad.
Think of your target customer at all times, to not only understand what they want but also understand their expectations. Understanding who your customers are is really important. After using personalization to advertise your products, customers have already clicked on your page, don’t stop, personalize. Let’s continue to divide Content further to suit each small group of customers. That means building for each public group a separate type of content (Content), each Content type is a separate sales page.
Although you can freely apply Personalization (personalization) to ads, there are still a few rules that you have to keep in mind to not be intercepted by Google and customers. There are three guidelines to follow when using Personalized Ads on Google as follows, advertisers should pay attention:
- The pain: It is forbidden to mention personal illness, failure in life, divorce, bankruptcy, traumatic memories, law violation, etc.
- Identity and religious beliefs: Disclosure of users’ identities is prohibited and advertising content that is harassing, degrading, discriminating against sexual orientation, religious beliefs, political beliefs, politicians, union members, race, national morale, and other sensitive group members such as refugees, immigrants, transgender people, etc.
- Sexual orientation: All content related to nudity and contraception is prohibited.
In addition, Google also offers prohibited categories with Personalized Ads: alcoholic beverages, gambling, clinical trials, banned drugs, users under 13 years old.
Notes when implementing personalized advertising plans
- Pop-ups and menus: The purpose of this implementation is to ensure consistent, up-to-date content grabs the attention of your visitors. The combination of pop-ups and menus gives business great efficiency. Because pop-ups are intended for calls to action and menus tend to be less intrusive and work more persistent.
- Messages on the page: Usually, messages on personal pages require sophistication, careful selection, and response to customer information supply needs. The foundation of this implementation is based on the actions and history of each visit on the web of the customer.
- Thanks to the convenience and optimization in sites, you can create a personal experience in each part of the site by adding illustrations, text comments, and comments.
- Form and survey: Collecting important data from customers becomes easier with timely participation of Form and survey. These two tools are based on behavioral history that can improve data quality while providing valuable information.
The right time to take the form and survey is when the customer has used the products or services in your unit at least 1-2 times. Not submitting a survey or form from the first interaction will confuse the client and may give inaccurate responses.