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How DTC Can Help Your Brand Differentiate Through Personalization

Differentiating your product and brand from competitors can be challenging. Learn how a direct-to-consumer approach can help you create personalized shopping experiences for your customers that help your brand stand out.

December 7, 2022

Celeste Rivas

Standing out in a sea of competitors can be one of the most challenging aspects of your brand’s growth journey. Having a unique, quality product is the basis of setting your brand apart from the rest.

However, in an age in which consumers place value not just on the product at hand but also the shopping experience itself, a personalization strategy is essential to creating an authentic brand that stands out from the competition.

But to personalize your customers’ journeys, you need a deeper knowledge of who your consumers are and what they expect when shopping with your brand.

Direct-to-consumer (DTC) is the key to this. By giving access to key insight into consumer interactions with your brand, DTC (sometimes referred to as D2C) channels can help you create memorable experiences that will give you an edge over your competitors.

In this article, we look at what personalization in marketing is, why it’s important for brands seeking growth and how DTC can help you achieve it. 

 

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What is personalization in marketing?

Personalization refers to the application of data analysis and technology to provide a tailored marketing experience to consumers across a range of channels.

Adding the right name to a text message or an email is a basic example. But with the proliferation of artificial intelligence (AI), advanced marketing technologies and innovative data collection and analysis, personalization can be taken further than ever.

Marketing personalization today is about creating a complete shopping experience. One where customers’ individual needs and preferences are used to enhance the shopping experience and make their journey to purchase unique and relevant.

Businesses can take a range of different approaches to satisfy the different expectations of what personalization should look like.

One option is the option for shoppers to customize their items – Swiss chocolate brand Toblerone’s personalized chocolate gifts are a good example of this.

But this can extend to sending out hyper-personalized communications and offers too. For example, notifications when a previously viewed item is back in stock or a special discount for a birthday.

Brands with this customer-centric approach personalization can differentiate their offer and drive growth.

 

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Why is marketing personalization important? 

Personalization is increasingly important for brands seeking to differentiate. This need is driven by the rising demand from consumers for tailored shopping experiences, as well as an increased need for results-driven marketing from brands.

In other words, shoppers want the brands they shop with to really know them.

73% of customers expect companies to understand their unique needs and expectations. And 62% of consumers say they would not be loyal to a brand if they deliver an un-personalized experience.

Likewise, 49% said they are likely to become a returning customer after a personalized shopping experience with a retailer.

Beyond the realm of customer experience, personalization can also have a key impact on your brand’s growth. Businesses that embrace rapid personalization drive 40% more revenue compared with their peers.

How DTC can drive differentiation through personalization

Every time a customer browses your website or clicks on one of your emails or ads, they’re giving you a signal. What they are interested in, what they’re not and which way their shopping journey is headed.

These signals rely on first-party data shared directly with brands – and DTC channels are a data goldmine.

Interactions on your DTC channels leave an incredibly valuable trail of first-party data that helps your brand put together key pieces of the personalization puzzle. Shopping habits, behaviors and preferences that are central to designing a bespoke experience can all be gleaned from your DTC channels.

Analyzing this data (collected by your brand after getting consent from users) can reveal key trends and patterns that reveal greater details on your individual customers.

As an example, this data can show how often shoppers abandon their purchases or make use of special discount codes or promotions. Supported by this, you can shape or adapt your strategies to help consumers along in their path to purchase.

Moreover, it will enable your brand to create seamless personalized experiences and products that can help it differentiate from competitors.  
 

If you want to boost your personalization capabilities by embracing DTC, partner with experts that can help ensure your data works hard for you.

THG Ingenuity is this partner.

For nearly two decades, we have been supporting the DTC journey of brands from across the beauty, retail and FMCG verticals. With our technology, marketing and fulfillment services, we can help you understand and reach consumers effectively and successfully with data-driven personalization.

Get in touch with us today and see how we can help your business embrace DTC personalization.

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