The ROI of Relevance: How Personalization Offers a Key to Combat Rising Prices

This intense focus on cost means marketers must work harder to earn attention and drive sales But the data also shows that relevant datadriven personalization can helpThe research measured how different types of personalized ad messages influence purchase behavior across various product categories The results show that when brands create relevant individualized experiences people are more likely to choose that brand and more willing to pay more for itPrice Sensitivity Reaches Every Corner of the MarketCompared to two years ago 58 of consumers say price matters more for groceries and 52 for travel and technology purchases Categories once considered less pricesensitive including health and wellness household essentials and automotive also show significant increases in price considerationThis shift creates a critical challenge for brands How do you maintain market share and pricing power when consumers scrutinize every purchase decisionPersonalization Feels More Acceptable Now But It Has LimitsConsumers are more open to personalization than they were five years ago Our research found that 97 of people now expect some form of personalization from ads they seeDriving this acceptance is the general feeling that brands are now able to deliver more relevant and useful experiences Consumers also cite improved transparency and better control over data and privacy settings as key factors in their growing comfortHowever even with broader acceptance most consumers still feel like too much personalization can be amp8220creepyamp8221 When brands overpersonalize people become less interested in learning about the brand and may trust it lessSimilarly when brands miss the mark and deliver irrelevant experiences it can damage brand reputation In fact the study found that a message with incorrect information reduced peopleamp8217s likelihood of choosing the brand over a competitor by 43 compared to generic content In other words if youamp8217re going to personalize do it well or donamp8217t do it at allDemographic Differences Drive StrategyYounger generations show significantly higher acceptance of data usage for personalization Millennials lead in comfort with all personalization types followed by Gen X Adult Gen Z and Baby Boomers For example 69 of Millennials find it appropriate for brands to use previous purchase data for personalization compared to just 45 of Baby BoomersThis generational divide requires marketers to adjust their personalization strategies based on target demographics Campaigns targeting younger consumers can leverage more sophisticated data points while those aimed at older demographics should be more mindful of data sensitivity and transparencyPersonalization Lifts Purchase Intent and Spending If Done WellOur research tested more than 220 brand messages across four product categories grocery wine beer and wearable tech Each message leveraged different personalization data including transactional history browsing behavior life stage and psychological traits The control messages werenamp8217t personalized at allThe results showed a clear pattern Personalization made people 7 more likely to choose a specific brand For people who were actively inmarket that number jumped to 26 Personalization also changed what people were willing to pay Consumers reported that theyamp8217d pay 18 more for products like wine and groceries after seeing personalized messages For wearable tech the lift was 27 and beer showed a 09 increaseThese numbers add up fast The study projected that a 18 lift in price tolerance for a 31 billion food brand could lead to 55 million in new revenue A 12 bump for a 598 billion beer brand could mean an increase of 717 millionSome Types of Data Work Better than OthersNot all personalization delivers equal results The most effective strategies connect where consumers are in their lives with what they buyThere are four primary data types marketers can use to drive purchase decisionsLife Stage Messaging that acknowledges major transitions new families recent marriages career changes resonates most stronglyTransactional Purchases Leveraging actual purchase behavior and category preferences creates highly relevant experiencesOnline Behavior Recent browsing and search activity provides immediate relevance signalsPsychology Understanding interests attitudes and mindset enables deeper connectionAmong these life stage and transaction history were the most reliable drivers of purchase decisions Layering data types produces stronger results A message that combines purchase behavior with life stage feels grounded A message based only on vague interests or recent clicks feels weakerFormat and Device Matter TooThe device where someone sees an ad also influences what kind of personalization works best On mobile people expect reminders or prompts On desktop they look for ads that connect to their searches On streaming TV theyamp8217re open to discovering new products or brandsThis means personalization canamp8217t be copypasted across channels A message that works in an Instagram ad might fall flat in a YouTube preroll Brands need to consider both the message and where it shows up to be successfulKey Takeaways for MarketersWhen Price Matters Personalization Pays In today39s market brands that personalize their message can not only meet consumer expectations but also curb price sensitivityPersonalization Should Be MultiDimensional Use a layered approach built on where consumers are in life and what they buyGet It Right or Don39t Do It Irrelevant or overly personal ads damage trust and brand perceptionBuilding Sustainable Competitive AdvantageIn an environment where price sensitivity affects every industry and income level personalization offers one of the few paths to maintaining pricing power and market share The brands that succeed will be those that invest in sophisticated personalization capabilities while carefully avoiding the pitfalls that damage consumer trustThe research shows that personalization is a fundamental requirement for remaining competitive Consumers who experience relevant wellexecuted personalization develop stronger brand relationships and become less pricesensitive over timeThe question isn39t whether to personalize but how to do it intelligently respectfully and profitably Brands that master this balance will find themselves wellpositioned to thrive even as price pressure continues to intensify across all marketsClick here to read amp8220The ROI of Relevance How Ad Personalization Offers a Key to Combatting Rising Pricesamp8221 and access the full research report on MAGNAamp8217s website And learn more by visiting Zeta Globalamp8217s Resource Center linked herePosted at MediaVillage through the Thought Leadership selfpublishing platformClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillageorgMyersBizNet

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The ROI of Relevance: How Personalization Offers a Key to Combat Rising Prices

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