What is personalization?

Within the sphere of digital marketing, personalization refers to a marketing strategy that applies user data to communication outreach in order to refer to customers with individually specific attributes such as names, locations, and preferences. 

What is an example of personalization?

An example of personalization would be a marketing email that refers to the intended recipient by name, such as “Hi, Jeff!” or a notification based on previous activity as well as personal information such as a notification that reads, “It’s your lucky day, Jolene! Something from your wishlist is on sale. Come check it out!”

Why does personalization matter?

Personalization is important for brand communications because it helps offer more relevant information and promotions to individual users, thus increasing the likelihood of conversion. It is also important for brands to offer personalized communications in order to build emotional connections and deepen a customer’s investment in their relationship with the brand. Especially for companies that operate exclusively or primarily online, personalization can add a humanizing touch to their experience. 

Benefits of personalization

Personalization has many benefits to digital marketers and their customers including:

  • Curating relevant messaging
  • Creating an emotional connection
  • Capturing customer attention
  • Meeting user expectations
  • Deepening brand investment
  • Increased conversion and retention

What is personalization strategy?

Personalization strategy is a technique within digital marketing that uses individual data gathered from users to create unique experiences based on their personal information, preferences, and past interactions. As a marketing strategy, personalization is effective because it helps customers feel valued, increasing their emotional connection to a brand, and offers customers messaging that is more relevant to their expectations and needs, helping them get more value from the experience and increasing the likelihood of conversion. 

What is the difference between customization and personalization?

The easiest way to tell the difference between customization and personalization is to focus on who is generating the changes to an experience or product. In short, customization is customer generated and requested, while personalization is offered by brands in hopes of increasing conversion or brand loyalty. 

When a company or brand utilizes individual information about their customers to create messaging that is unique to that client, they are offering a personalized experience. An example of personalization would be if a company sends out an email campaign which addresses users by name and gives them the highlights of upcoming events in their area based on preferences indicated in their account.  

However, if a client is the one making choices and changes that effect their experience or the available product, that is an example of customization. For example, a project management tool may offer users the ability to customize their experience of the software by specifying whether they want to view tasks by deadline or by assigned responsibilities, or a clothing company may offer customers the opportunity to order certain pieces with monogrammed embroidery so that they will have a custom piece made just for them.

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