The current state of how we market to our customers stands in creating a more localized and personalized customer experience. It’s the driving force in how businesses acquire and retain their customers.
When marketers use customer identity data to guide each marketing campaign, customer program, client interaction, and user experience, that’s called identity driven marketing.
Once the customer identity (also known as customer persona) is identified, identity-driven marketing helps you deliver consistent, targeted, and personalized messages and offers to your customers.
With identity driven marketing, you’re able to amplify your marketing ROI due to creating a highly targeted customer experience. The more you cater your marketing efforts to your customers, the better your customers’ experience is when they engage with your business, and the higher the likelihood they will become a customer and stay a customer.
To give you a better understanding on why identity driven marketing is crucial to your business, this post will highlight 5 benefits that will change the way you think about marketing and engaging with your customers.
5 benefits of identity driven marketing
1) Improve segmentation and targeting
Every form of marketing messaging should always be crafted and designed with a specific target audience in mind. When you create customer identities, you’re able to segment your customers into groups that put together like-minded people who demonstrate having similar behaviors, interests, and characteristics.
Your objectives will lead the way you create these segments, which will always change over time because your customers’ behaviors evolve as you collect more data points.
When using customer identity data to create segments be sure to expand beyond demographic information, by also including psychographic characteristics. Understanding your customers’ beliefs, values, and attitude will be a greater value to you when trying to predict how your customers will respond and how loyal they will be to your brand.
For example, if you are creating a promotion plan for a product that will target females, between 18-25, in the UK, you will need to understand how likely they will be to share that promotion to help you increase your reach and improve the ROI of your marketing efforts.
2) Create a consistent customer experience
Your customers will thank you and praise you when you’re able to create a customer journey that is consistent and personalized. To have a consistent customer journey, leverage the customer identity data that you already have. Creating a customer journey that is consistent, means you need to make sure you put your predictable hat on because customers expect that their next interaction with you, to be informed by their previous interaction.
For example, what if you were reading a blog post and the call-to-action says, “Sign up for free!” Then after clicking on the button that says, “Free,” it takes you to a page that prompts you to pay for the product, how would you feel? Robbed? Angry? Confused? Not a good feeling, right?
This why having a consistent customer journey is important because it helps you improve customer acquisition. Consistency in your marketing should extend beyond a CTA, however, it should include every touchpoint you have with your customers. This means ensuring every message, promotion, and advertising consistently reflects your customer’s identity aligning with your brand identity.
3) Provide a contextually relevant customer experience
Identity driven marketing drives how you provide a contextual relevant customer experience. This is when your marketing messages or offers are designed to drive your audience to a specific, personalized, and real-time interaction. An example of this is remarketing, which is a strategic way to reconnect with your website visitors with targeted ads as they browse on the internet elsewhere.
When delivering a contextually relevant experience, it requires you to be one-step ahead in messaging by using the customer data you have already collected. This kind of identity driven marketing provides you the opportunity to add value for the customer by enhancing and building on a previous interaction.
For example, what if you were shopping around the web for a new pair of shoes and out of the three retail websites you visited, one of them served you a Facebook ad of a shoe you were eyeing on their site? Wouldn’t you be more intrigued to click on that ad and purchase that shoe from that retailer vs. the ones who just forgot about you? Yes, you would! Which is why marketers need to make sure they provide a contextually relevant experience, so they never miss out on an opportunity to grow their business.
This is an example of Expedia remarketing to me because I recently was on their site looking for flights to London.
4) Improved personalization
Perhaps the most difficult thing in marketing is providing a personalized experience for each customer. However, with the customer data you have at your fingertips you’re provided the opportunity to improve on personalizing your customer’s experience with your marketing initiatives. Many organizations have yet to implement a way to effectively collect customer data, but those who have are ahead of their competition in terms of providing a more valuable and personalized experience.
When it comes to personalization, it doesn’t mean that you have to make sure every customer receives a unique and customized message, that’s just not scalable. Rather, it’s about leveraging your customer data and segmenting customers with similar characteristics and behaviors, then providing them with marketing messages that cater to their customer identity.
5) Prioritization of marketing strategies
For many marketing teams, prioritizing which initiative gets budget, time, and resources can be quite the headache. However, when you leverage your customer data, you can bet that the marketing initiatives that are well targeted and backed up with data will be prioritized over the campaigns that have an unclear direction or have no proof that it will bring value to the business.
For example, what if an email marketing manager wants to run an email campaign to a segment that has a 75% chance of increasing sales by 50% needs a designer’s time and a product marketer wants to create a blog post to promote a new product to the masses also needs a designer’s time, which one do you think will win the designer’s time if your current mandate is to increase sales? The email marketing manager who has a for sure chance of increasing sales, right? Of course!
What we’re trying to say is…
Once you’ve established the way you’re going to gather customer data, you’ll have an infrastructure that is necessary to run identity driven marketing initiatives. As you begin to run campaigns that are more personalized and customized, you’ll start increasing customer data points that help keep helping you improve your customer experience as well as increase customer acquisitions.