article-thumbnail-personalisation-loyalty Insight

In this era of instant gratification, consumers are increasingly drawn to brands that they have forged a personal and emotional connection with.

In fact, emotionally connected customers have a 306% higher lifetime value, remain loyal to a brand for an average of 5.1 years and will recommend brands at a much higher rate.1

Brands that can’t meet their customer’s needs and expectations risk losing them to those that do. Personalisation is one of the key elements for building emotional connections which in turn helps build brand loyalty.

Why personalisation drives loyalty

Consumers gravitate towards personalised experiences due to a psychological principle known as the ‘Cocktail Party Effect’. In a noisy environment, our brain separates overlapping conversations into different auditory streams so that it can ignore irrelevant information. One of the key triggers for people to ‘tune in’ is when they hear their name.2

Today, personalisation is far more than just saying “Hi, John” in an email subject line – it’s about anticipating the consumers’ needs at every touchpoint. As each customer is on their own unique journey, the motivation to try, buy, or stay loyal changes depending on the individual.

Increasing customer retention by 5% can increase profits by 25% to 95%.3

By personalising your digital campaigns, your brand will be able to:

  • Build trust
    Through personalised experiences, your customers will get the impression that you have their best interests in mind.
  • Show commitment
    Since you are taking the effort to build a relationship, customers will believe you genuinely value the relationship.
  • Encourage reciprocity
    As you’ve made the effort to get to know your customers, they may return the favour by keeping your brand top-of-mind for future purchases.

Getting personalisation right to nurture strong customer relationships

With brands pivoting and adapting to a new way of operating, there is an increased sense of urgency to leverage insights to better understand consumers’ new needs and expectations.

While brands recognise the power of personalisation and the need to make it a priority in providing consistent, tailored experiences, meeting those personalised expectations require a deep understanding of each customer as an individual and acquiring that kind of insight takes time.

Additionally, when it comes to execution, most brands find it challenging to keep up with producing variations of content and creatives that resonate with different audiences. A study by Adobe revealed that time is the top barrier to personalisation, followed by cost due to insufficient resources.4

On average, it requires 12 days to take a single piece of content to market.4

Brands can no longer rely on the traditional one-size-fits-all generic marketing messages approach to build relationships with consumers, and they need to move away from the manual production workflow to achieve personalisation at scale.

Personalisation made possible with creative automation

Technological innovations today have enabled brands to take personalisation, even hyper-personalisation, to a whole new level. However, the challenge has always been to scale the creative and content assets to a high standard, cost effectively.

Now, it is made possible with Digital Creative Automation (DCA), our proprietary delivery system as a managed service.

DCA speeds up the creative and content adaptation process, allowing for large volumes of personalised digital ads (including video), emails, and creative assets to be produced in the templates of your choice.

With DCA, brands can test multiple variants of messages, languages, visuals, call-to-actions, and ad sizes to determine which drive performance. They can then use these insights to optimise and improve digital campaigns quickly and effectively.

This helps brands to save time and cost, which in turn, offers better ad experiences for your consumers as the content matches their needs. More relevant experiences equal more engaged customers, which leads to greater emotional loyalty for your brand.

Looking to explore personalisation for your digital campaigns? Schedule a demo for DCA today.

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