How Personalization Affects Lead Nurturing
February 20, 2017
The lead nurturing process walks a prospect through the stages of the sales funnel and continues through the sale. Proper execution requires knowing what to send when and ensuring that you’re adequately meeting your target market’s needs. This involves a variety of marketing strategies that require a thorough understanding of your target market’s characteristics and buying behavior and is a continuous process with the main goal of building lasting relationships with your customers.
In today’s digital world, personalization is an integral part of any business’ marketing endeavors, and it’s also one of the biggest trends in marketing. People now expect a level of relevance that goes beyond general interests and target market fit.
Think about it this way: would you rather receive a marketing message reflecting generic industry and company updates OR would you prefer a message that provides you with relevant information based on your industry and chock-full of topics that are relevant to your needs and position?
Pretty much everyone prefers the latter because there’s a much higher chance the content will bring value, as opposed to simply being yet one more piece of irrelevant junk mail. So if we have the means to personalize our lead nurturing campaigns, doesn’t it make sense to take full advantage of it?
The success of a good lead nurturing campaign is determined by the effectiveness of your campaign strategy. Of course, just because you’re using a personal approach doesn’t mean that prospects will be lining up in droves. It isn’t that easy. Your message must resonate with them, and you must build their trust in your brand over time.
Effective personalization takes time to achieve, so as a marketer, you have to do your target market research, which goes beyond segmenting by demographics. Track your prospects’ activity by identifying pertinent online behavior, searches, clicks, and purchases.
Get to know their interest by analyzing the articles they’ve been reading. Once you’ve identified what your prospects are on the lookout for, it makes it much easier to build a database of relevant content that you can use to attract and convert them.
Personalization Increases Engagement and Conversions
Emails that are targeted to an individual or specific group of people show improved click-through rates of 14% and conversion rates of 10%.
With personalized emails and relevant content, your leads are far more likely to engage with your message. Too many marketing emails can be annoying, but if they’re helpful to the recipient, they’re more likely to engage and share it.
It’s highly beneficial to create a buyer persona profile and segment your database based on these categories. These profiles should be based actual characteristics of your current and potential buyers. The information you acquire from your buyer personas will help you produce content that your audience actually appreciates, improving your engagement and conversion rates.
Personalization Creates Trust
Building trust is undoubtedly one of the most important objectives for marketers. If you can successfully motivate prospects to opt-in, they become a whole lot more receptive to your future communications, which means improved chances for engagement and conversion. Just keep in mind that you can’t build trust in a snap. It takes a while before prospects can see the worth of your company.
Delight prospects by understanding their needs and their problems. Personalized content, blogs, emails, and promos get people’s attention if they’re properly targeted. As you continuously provide your audience with valuable and relevant information, they will be more likely to keep your brand top-of-mind during the decision stage of the buyer’s journey.
Remember not to oversell your personalized marketing; it can actually get a little creepy. For example, it would be perfectly fine to recommend other gluten-free products to a customer who had bought gluten-free bread. But it might be a little off-putting if a store clerk overheard a customer’s phone conversation to his wife and suggested buying flowers for her. The line between being personal and being invasive is a thin one.
Personalization Moves Leads Through Your Funnel
The biggest contribution of personalization in lead nurturing is revenue and ROI. According to a study by Demand Gen Report, a 20% increase in sales opportunities are produced through leads who are nurtured with tailored content.
Personalization gives you a huge advantage when it comes to lead nurturing. It creates better understanding and collaborative discussions between you and your target consumers. The stronger your connection is, the higher their chance of converting.
By personalizing, you can create content for different types of leads. The way you segment your marketing communications is completely up to you. Some businesses choose to segment their messaging based on their persona profiles, while others may segment based on online behavior. Whatever the case, it’s also a good idea to segment your messages according to what stage of the sales funnel that particular lead is in.
Lead nurturing can be a relatively long process, but it’s worth the hard work when you can see the positive results. It’s hard to argue against a 50% increase in sales leads generated at a 33% lower cost per head, according to Forrester Research.
Developing an effective personalization program is a tough job. Your ability to personalize depends largely on how well you know your market. If you want to improve your chances of success, make understanding your audience your number one priority. This involves setting up appropriate data collection and analytics systems to gather insights for use in your nurturing campaigns.
As the guys at Drift often say: “Whoever gets closer to the customer wins!”
Strategically managing leads is critical to being able to generate the right ROI. Learn more in our free whitepaper.