Personalization Through Technology – Good or Bad?

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Personalization Through Technology – Good or Bad? Today, every company or small business looking to establish a large customer base must go beyond traditional marketing. Many professional marketers are turning to content personalization when adopting more sophisticated and customer-centered approaches to marketing.

It is very common to get an email from a company addressing you directly by your first name, like ‘Hi, Maxwell, can you spare a minute to go through our catalog?’

Personalization in technology and marketing is becoming more very common. In this article, we discuss the benefits of content personalization and state the reasons why your company should adopt it to grow its customer base.

Some examples of Australian companies making good use of personalisation through technology include, ONTHEGO and Hellofresh.

The Benefits of Personalization

1. Improved Customer Experience (UX)

A customer is an essential asset to a company, it costs much less to retain a current customer than to acquire a new one. In order to improve customer experience, many online-based companies or e-commerce platforms are adopting personalization or content customization in their marketing strategy like never before.

Studies have shown that customers are more likely to buy from a company when they feel appreciated and treated like family. With this insight in mind, most marketers create content that makes the customer feel appreciated and involved in the brand.

In other words, when a customer is addressed by their name when sending a message such as an SMS or email, they are more likely to respond. This, in turn, increases the ROI, which is the ultimate goal of a marketing team.

2. Improved Trust and Credibility

In the modern era, throwing proverbial noodles does not help in any way. The competition is tough, especially in the digital market, and companies are busy finding ways to retain existing customers and establish a loyal customer base.

The worst a company can do is treating potential customers like strangers. Most customers want to know that a brand cares about them before they can remain loyal to them. Before a customer buys from a brand, they research more about it to establish its credibility or reputation in the market.

When a company comes up with personalized products or marketing content, it communicates to customers directly and addresses their issues. For instance, a software company can develop subscriptions or packages for different customers based on direct email marketing feedback.

By personalizing content strategy through technology, customers can build trust, familiarity, and loyalty to different brands. This helps the company to improve its sales revenue.

3. Reduced Bounce Rate

If you want to keep customers or visitors on your site, every feature on the website can be customized to meet their interests. A higher bounce rate is damaging to the business in terms of customer conversion. It is challenging for an online store to convert visitors to successful leads with a higher bounce rate.

When a customer visits a website and finds out that it is designed to meet their interest in terms of information, graphics, and page layout, they are more likely to stay on the site for longer. It is also easier to convert a site visitor into a potential customer if they stay longer on the website. A personalized, on-site experience can improve customer retention and acquisition.

4. Builds Lasting Relationship with Customers

Adopting a customer-centered marketing approach can improve revenue in a business. When customers are more friendly and loyal towards a brand, they can provide useful information which helps the company to improve its products and services.

When a business implements personalization on its site and in its marketing strategy, it becomes easier to persuade customers to buy. It feels nice to a customer knowing that a message or product has been designed by a company to meet its unique needs. Personalization establishes trust and authority to your customers, which helps you build a lasting relationship which is helpful for business growth.

5. Improved Conversion and ROI

Every customer loves seeing their names on marketing content from their chosen brands. Modern technology has made it more affordable and cost-effective for marketers to adopt personalization in marketing. When you send direct emails to potential customers on your email list, it makes them feel like you are talking to them personally.

This way, they are more likely to develop trust and authority on your brand. You easily convert customers that read your personalized content and boost your sales over time. As long as you address your customers with their real names on the marketing material, you should expect a positive reply. Personalized content can increase customer conversion by at least 32%.

What If You Don’t Apply Personalization?

Studies have shown that a significant number of millennials do not like receiving irrelevant content in their inbox. At least 71 % of your target audience will not reply to a material if it doesn’t meet their unique preferences.

Most customers give positive feedback if the message is customized and directed to them. Since most customers prefer customized or personalized content, you should always customize your content to improve your brand experience. When you miss out on personalization’s key elements, you are likely to lower your revenue and conversion in the long run. For example, addressing your customers with a wrong name because you failed to update your email list sounds unprofessional and can send them off the hook.   =

A recent study by SmarterHQ shows that at least 63% of customers will stop buying from you if you don’t adopt personalization well. For example, customers are likely to unsubscribe from your email list when they keep receiving emails about items they have bought or items off the market.

Final Thoughts 

The debate on whether personalization is good or bad is unending. However, looking at the myriad benefits it brings to a business, every company should adopt it. When practiced the right way, you can use personalization to boost customer experience, increase conversion on your site, and, most importantly, increase sales.

In marketing, every bit of addition to customers counts on company revenue. Of course, your performance is measured based on new customers that sign up for your brand. Personalization through technology is the right way to go for any business intending to grow its customer base and achieve ROI.


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