There’s a relentless pursuit that grips most companies: striking the perfect balance between minimising customer acquisition costs and maximising marketing triumphs.
And who is stuck in the middle of this high-stakes race? Marketing managers.
They’re the ones daring to venture into uncharted territories for ingenious solutions that fuel growth, elevate conversions, and unlock boundless ROI.
For marketing managers, optimising customer acquisition costs is a top priority. But we didn’t have to tell you that, now did we?
According to HubSpot, 63% of businesses rank customer acquisition cost (CAC) as the top challenge and over 49% worry about the rising costs of CAC in recent years.
The problem is that generic marketing messages miss the mark and fail to engage the right audience, leading to wasted resources and limited conversions.
Value gain through hyper-personalisation
The good news is that there is a solution — hyper-personalisation.
Hyper-personalisation revolves around crafting personalised and targeted marketing campaigns that resonate with individual customers.
It’s the most advanced way your business can tailor its marketing to individual customers.
Using data, analytics, AI and marketing automation, hyper-personalisation lets you create custom and targeted experiences — contextualised communications to specific customers at the right place and time, and through the right channel.
As digital marketing becomes more competitive and CAC costs keep rising, hyper-personalised marketing is how you can engage your customers, deepen relationships, forge new ones, and (we can’t forget) drastically improve the customer experience.
When you tailor marketing messages to align with individual customer preferences and behaviours, you significantly reduce customer acquisition costs and boost conversion rates.
Hyper-personalisation goes further than segmentation
We need to pause and make sure that you’re not confusing segmentation with hyper-personalisation. They’re not the same.
While segmentation creates customer groups based on shared qualities including likes, demographics and more, hyper-personalisation goes deeper and focuses on the small differences that make each individual, well, individual.
Segmentation has long been used by businesses as a part of their marketing strategy. But this trusted method can’t take you to that next-level personalisation that your customers are expecting.
If you just sit back and throw time and resources at increasing segmentation, you’ll keep missing out on the ROI.
But not with hyper-personalisation.
Instead of casting a wide net, personalised targeting involves leveraging customer data to identify the most promising leads. This targeted approach ensures that marketing resources are allocated efficiently, reducing wasted spend and optimising the return on investment.
You’ll focus on tailoring your marketing efforts at the individual level.
How? By using first-party data that you’ve collected.
By understanding your audience’s distinct characteristics, marketers can create custom campaigns that resonate with individual customers, increasing the likelihood of conversions.
Hyper-personalisation can happen in several degrees, ranging from recommendation engines to connecting online and offline sales channels, and from predicting customer preferences to developing tailored products or pricing.
Think about personalised product recommendations or unique subscription offers shared with your consumers using real-time engagement with your brand. Instead of hoping something catches, you’re able to optimise your target with key messages and offers through the most relevant and appropriate channels.
And what happens when you give consumers exactly what they’re looking for?
Customer satisfaction goes up along with brand loyalty and wallet share while customer acquisition and retention costs go down.
According to a study by Epsilon, 80% of customers are more likely to make a purchase when brands offer personalised experiences. Personalised targeting allows businesses to reach high-value prospects with lower costs, increasing the chances of converting them into loyal customers.
Agillic clients PureGym and Egmont Publishing can attest to the power of hyper-personalisation with an omnichannel approach. PureGym saw a +6% increase in member retention and Egmont a 22% decrease in churned subscriptions after switching to our Omnichannel Marketing Automation Platform.
3 ways to use hyper-personalisation to lower customer acquisition costs
1. Implement personalised ad targeting to reach high-value prospects with lower costs
Generic ad content may go unnoticed or be dismissed as irrelevant.
By crafting personalised ad content that speaks directly to the customer’s needs and interests, marketing managers can significantly boost conversion rates. Whether through personalised email marketing, social media ads, or display ads, hyper-personalisation ensures that the right message reaches the right person at the right time, driving better results and reducing customer acquisition costs.
According to a study by Instapage, personalised targeting can increase conversion rates by 202%. With Agillic, you can leverage first-party customer data to identify high-value prospects and deliver personalised ads directly to them, ensuring your marketing budget is spent more efficiently.
A study by Accenture found that 91% of consumers are more likely to shop with brands that recognise, remember, and provide relevant offers and recommendations. Matas backs up that statistic with their increase of 300% in repurchase rate when they switched to Agillic and started creating hyper-personalised omnichannel campaigns.
Hyper-personalisation ensures the right message reaches the right person at the right time, driving better results and reducing customer acquisition costs.
2. Create personalised landing pages and website content to maximise ad conversion
A cohesive customer journey is essential for increasing conversions. Hyper-personalisation allows marketing managers to create personalised landing pages and website content that align with the ads the customers interacted with.
By aligning landing pages and website content with the ads customers interacted with, marketing managers can reduce bounce rates and increase the likelihood of conversions. Hyper-personalised content is how TV2 (Norway) reduced churn by 52% with Agillic.
3. Use dynamic ad personalisation to show relevant offers based on customer preferences
Dynamic ad personalisation involves dynamically changing ad content based on real-time data about the customer.
A report by Monetate revealed that 56% of customers are more likely to return to a site that recommends products. By presenting customers with relevant offers based on their preferences and behaviours, marketing managers can deliver a more personalised and engaging ad experience, resulting in higher conversion rates.
Creating a roadmap for success
Achieving success with hyper-personalisation and decreasing CAC goes beyond merely installing a single piece of technology in any organisation. Even marketing automation tech as powerful as Agillic.
Instead, it entails a well-thought-out strategy that impacts various aspects of the business and necessitates a cohesive technical solution. Creating a successful personalisation strategy requires organisations to craft a roadmap that carefully outlines which personalisation elements should be integrated, when they should be implemented, and how they should be executed.
As the customer journey comprises numerous touchpoints, several personalisation tactics can be deployed. However, organisations need to prioritise these efforts by assessing their impact concerning the implementation costs.
The impact of personalisation efforts can be measured in various ways, such as evaluating financial returns on investment, assessing their influence on customer experience, or examining how they affect the competitive landscape.
Certain personalisation endeavours yield greater benefits than others, and organisations must be clear about their objectives to achieve the desired outcomes.
For instance, a brand aiming to enhance customer loyalty may focus on streamlining the shopping experience and fostering stronger connections through personalised communication.
Conversely, if a brand aims to boost quick conversions, it can entice customers with personalised offers and pricing to spur impulse purchases.
The nature of personalisation solutions required varies based on the unique demands of the organisation and its customers. Organisations need to adopt the appropriate personalisation strategies that align with their brand image, customer relationships, and industry.
This process necessitates a self-assessment to understand the organisation’s goals and current state, which then forms the basis for developing a roadmap that prioritises the most critical elements.
In the pursuit of true personalisation, timing is crucial.
Organisations must continuously gather the right data to make informed decisions about implementing personalised experiences. As personalisation maturity and willingness to invest vary across organisations, the costs of implementation will likewise differ. To optimise resources, organisations should focus on deploying low-cost, high-impact solutions that deliver benefits in a manner that minimises disruption to their customers and their needs.
Hyperpersonalisation is not a one-size-fits-all solution but rather a strategic journey that involves multiple factors.
Embracing Agillic’s Omnichannel Marketing Automation Platform and product expertise can play a pivotal role in achieving successful personalised experiences that align with your objectives, brand identity, and customer expectations.
By developing a well-defined roadmap and prioritising the right elements, organisations can deliver personalised experiences that resonate with their audience and drive meaningful results.
Want to see what Agillic can do for your business and how to lower your customer acquisition cost and increase retention? Schedule a consultation here.