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What is Personalization?

Personalized marketing (also called personalization, and sometimes called one-to-one marketing) is an extreme form of product differentiation. Whereas product differentiation tries to differentiate a product from competing ones, personalization tries to make a unique product offering for each customer.

Personalized marketing had been most practical in interactive media such as the internet. A web site can track a customer's interests and make suggestions for the future. Many sites help customers make choices by organizing information and prioritizing it based on the individual's liking. In some cases, the product itself can be customized using a configuration system.

More recently, personalized marketing has become practical with bricks and mortar retailers. The market size, an order of magnitude greater than that of the Internet, demanded a different technological approach now available and in use. Many retailers attract customers to the physical store by offering discounted items which are automatically selected to appeal to the individual recipient. The interactivity occurs through the offer redemptions delivered via email and and personalized print media and recorded by the point of sale systems, which can then update each model of the individual shopper. Personalization can be more accurate when based solely upon individual purchasing records because of the simplified and repetitive nature of some bricks and mortar retail purchasing, for example grocery superstores.

How can Personalization give you more bang for your marketing buck?

Personalized marketing can help you manage customers rather than products, differentiating customers not just products, measuring share of customer not share of market, and developing economies of scope rather than economies of scale. Personalized marketing can allow you to identifying potential customers; determining their needs and their lifetime value to the company; interact with customers so as to learn about them; and customize products, services, and communications to individual customers.

For more information on how Direction can help you get more bang for your marketing buck with a Personalized marketing solution please contact a Direction representative today!