Major Challenges with Personalized Marketing
Martech Outlook | Friday, December 02, 2022
Personalized Marketing is facing various challenges related to data of poor quality, regulations and privacy and challenges facing talent, skills, and organizations.
FREMONT, CA: 98 percent of marketers agree that personalization helps in advancing customer relationships, according to the 2019 Trends in Personalization Report by Researchscape International and Evergage, Inc. 70 percent of these marketers claim that personalization improves customer experiences, increases loyalty, and generates measurable results.
Although new technology allows marketers to personalize messaging, tightening regulations and the difficulty of managing customer data continue to pose challenges to marketers.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
Marketing must walk a fine line between personalization and privacy and always put the customer first. By making an individual feel seen, heard, and understood, personalized messaging can cut through the noise. These interactions can solve a problem, fulfill a need, or provide enjoyment, ranging from product recommendations to personalized offers. Ninety-one percent of consumers prefer brands that remember them and provide relevant offers and recommendations, according to a recent Accenture Interactive study.
Marketers can also measure the ROI of personalization. According to the Trends in Personalization report, 90 percent of marketers cited measurable results from their personalization efforts, 58 percent reported improvements of more than 10 percent, and 15 percent reported improvements of more than 30 percent.
Among the challenges marketers must overcome, data is near the top of the list when it comes to personalization.
Challenges associated with data: The advancement of technology has enabled marketers to collect more customer data than ever, resulting in more precise targeting. To effectively manage and mine a massive volume of data, marketers need the right tools and systems.
It is unfortunate that customer data often come from disconnected sources. A single, accurate source of customer information is essential for personalization to succeed. Forty-eight percent of marketers cite data quality as a leading roadblock to effective personalization, according to Forbes Insights and Arm Treasure Data.
Data Obstacles to Overcome: An accurate picture of a customer is challenging to create. The process of practical personalization requires ongoing effort and continuous refinement. Coordination and integration are essential, as is the human element.
Translating data into effective personalization requires the right tools. Marketers must prioritize quality over quantity when choosing a customer data platform (CDP). Detailed, accurate profiles can also be created using AI-powered tools.
Regulations and restrictions are increasing: In 2018, the Cambridge Analytica scandal and the General Data Protection Regulation (GDPR) brought online privacy into the spotlight.
The Cambridge Analytica scandal and #DeleteFacebook blowback that followed showed consumers are growing uneasy about the way their personal data is collected and used. Regulations on the use of personal data soon followed. Location data collection restrictions have also made it more difficult for marketers to personalize messages based on location. Facebook's anti-discrimination efforts are also restricting targeted advertising. Credit, housing, and employment advertisers can no longer target customers based on ZIP codes, age, or gender.
Increasingly personal data collection and use are becoming scrutinized, affecting personalized marketing strategies significantly.
More in News

