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3 examples of successful personalized marketing

3 examples of successful personalized marketing

3 examples of successful personalized marketing

When you incorporate personalization into your marketing campaigns, you’re tiptoeing the fine line between relevancy and invasiveness. Given the monumental data breaches over the last decade, people are wary of their data and the security measures companies are taking to protect it. But that shouldn’t discourage companies from personalization tactics. When personalized marketing is responsible and transparent, it can be a massive success. 

So, what separates successful personalized marketing from invasive marketing? Here are three brands that excel at personalized marketing and have leveraged it to grow their customer bases.

Netflix

Netflix has become a staple in our homes, budgets, and culture. And the numbers reflect that. 

As of December 2019, Netflix has 167 million subscribers – which is 7.8x more than it had in 2011. One of the reasons behind this meteoric rise is the video streaming giant’s commitment to personalized marketing. 

The company’s personalization efforts are deeper than you’d think. Netflix assesses every action its viewers take, like when you pause or stop what you’re watching. It even considers the time of day you’re watching.

Every year, Netflix runs 250 A/B tests to see how users respond to different presentations. Netflix selects roughly 100,000 users to be an experimental group, while another 100,000 users serve as the control group. For example, two users may see different landing cards (i.e. the movie/show poster images). Whichever landing card is selected more often becomes adopted worldwide. 

Although the majority of companies don’t have an extensive database like Netflix’s, the SVOD giant’s personalized marketing methods prove that it’s important to test the timing and presentation of your content. 

Spotify

Spotify took the music (and podcast) streaming world by storm. The digital entertainment platform went from a fledgling app in 2008 to a massive multi-billion-dollar international corporation with 44 offices worldwide. 

In 2019 alone, Spotify’s Premium Subscribers grew from 96 million to 124 million – a 29% increase. One of the ways Spotify continues to connect with and grow its subscriber base is its commitment to personalized music and podcast recommendations. 

Spotify’s “Discover Weekly” playlist epitomizes the company’s commitment to a personalized experience for each of its subscribers. The playlist’s objective is to curate personalized music for each listener based on their music tastes. Using a complex algorithm, Discover Weekly identifies similar songs based on billions of user-created playlists and the listener’s song choices. 

The result can be hit-or-miss, but the Discover Weekly playlist provides a viable solution a customer pain point nonetheless: a personalized playlist without the hassle of creating one yourself. If there’s a lesson to be learned from Spotify’s personalization efforts, it’s that not every recommendation is going to be perfect – but it should still address your customer’s problems. 

Amazon

Amazon has a ridiculous amount of data at its disposal. Plus, the ecommerce behemoth mastered the application of artificial intelligence and machine learning long ago. So, as you’d expect, Amazon excels at personalized marketing and behavioral targeting. 

Every element of Amazon’s product recommendation system is meticulously designed – from the placement to the copy (e.g. “Frequently bought together” or “Customers who bought this also bought”). And 44% of shoppers make purchases based on Amazon’s recommendations. 

Amazon’s practices aren’t new, and its success isn’t a secret. The company continues to deliver relevant, personalized experiences, demonstrating the power of personalized recommendations.

Personalized marketing can be a powerful tool for your business. It requires a huge commitment to data collection and analysis, but, as these companies can attest, it pays off in the long run.

How can AGS help you with your next personalized campaign? Reach out and let us know!

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