What Does The Future Of Personalized Marketing Look Like Now That People Are Becoming More Data-Aware?October 30, 2018
Data-driven marketing promises marketers an ROI of five to eight times their marketing spend. It is therefore not surprising that no less than $ 20 billion was spent on this relatively new form of marketing worldwide last year. Everything also points out that this amount will increase rapidly in the coming years. But does data-driven marketing also provide something for the consumers themselves, and how do they stand against the eager use of their data? George Lavric, Digital Transformation Consultant at Sitecore, reveals a surprising answer.
“Everyone has talked about big data in recent years, but data-driven marketing is less known,” says George Lavric from Sitecore, which specializes in a combination of content management, commerce and customer insights. “However, the chances are that your readers will apply it to a greater or lesser extent today. After all, data-driven marketing is simply marketing based on the data from all possible actions and relationships between a brand and its consumer, ranging from a visit to a web page about a download to a tweet about the brand. It is an aggregation of all the data that you can collect and use about someone and then come to more personalized customer experience. “
We Are Out Of Milk
According to Lavric, we find the best-known example of data-driven marketing on webshops: “Everyone has already seen that if you want to buy a pair of trousers online, there is something along the lines of:” Ten people who bought these trousers bought these or gene shoes. “In Belgium, until now, people usually do not go much further than that. While I think it will become exciting in the next stage. Because then you can, based on what people have bought or based on their behavior in the past and in real time, predict what they are going to do within two or three days.
“In the future, the collaboration between machine learning, artificial intelligence, and data collection can even go much further thanks to the Internet of Things.”
For example, look at Alexa, the digital personal assistant of Amazon, who can ask you anything, but with which you can also shop on web shops like Amazon. Once you have done that a few times, Alexa will send you a reminder: ” George, your milk is almost finished. Do you want me to deliver new orders to your home within two days? “That cooperation between machine learning, artificial intelligence, and data collection is where we are currently going.”
A Future Full Of Data
And that could happen faster than generally assumed. According to a recent development by the American Data & Marketing Association, 44% of marketers would already work with a data management platform today, and 33% would have concrete plans to purchase one. 77% of them say that their access to usable data has increased significantly in the past year.
George Lavric: “In the future, the collaboration between machine learning, artificial intelligence, and data collection can go even further thanks to the Internet of Things or the numerous connected things in our lives. I am thinking, for example, of running shoes. They already measure which distances you are walking. Well, other sensors could also measure the degree of abrasion. After which you would get a message from Nike or another brand with the message that you can still walk twenty kilometers with your shoes before they are completely worn out. Smart TVs and smart refrigerators are also starting to show their enormous potential for possibilities. “
“At the moment, however, many of these future possibilities are still beyond the reach of average companies that do not have access to data like Amazon and have also implemented machine learning and artificial intelligence to the last detail. Moreover, we always rely on an economic model for this, assuming that people go through some fixed steps that lead to a purchase. But as everyone knows, people are impulsive beings who are driven by emotions. This is sometimes difficult to integrate into a data-driven marketing strategy. “
Who Needs Privacy?
Many people, including marketers, also think that consumers are still reluctant to offer personalized marketing because they would worry about their privacy. Marketers fear that they would come across as a creepy big brother, Lavric if they were to make explicit use of the data consumers have given them.
“75% of consumers are more likely to buy from a retailer who knows them by name, knows their purchase history and offers them recommendations based on recent purchases.”
Surprisingly, studies point to the opposite. For example, according to an Accenture Interactive market survey, no less than 75% of customers would be more inclined to purchase from a retailer who knows them by name, knows their purchase history and offers them recommendations based on recent purchases. George Lavric agrees with these findings: “Certainly since the GDPR is in, Consumers now feel safer and seem to have fewer problems with sharing their data with a company, as long as they know what a company is going to do with the data they provide. Twenty years ago that was perhaps different. But the present generation has grown up with technology. They fall asleep to their hands with their smartphone. Technology is part of their daily life. They realize that everything is an exchange of data. And they are completely open to that. As long as everything is sufficiently transparent. “
Most modern marketers have oceans of data but still can not reach the level of personalization that the customers expect from today.