Studies have always highlighted the monetary benefits of personalized emails, but recent figures boasting an impressive 760% profit boost mean that this can no longer be an afterthought. Instead, any company looking to get ahead from a monetary standpoint needs to prioritize this focus, and they need to do it fast in a world where more companies than ever are realizing those personalization benefits.
Of course, nothing worth having was ever easy, and accessing true financial benefits off the back of this focus means understanding which personalization techniques work. Companies should also be in a position to clearly segment relevant consumer data for this purpose, as well as ensuring the accessibility of that data across company lines through upfront investment into priorities like a reverse ETL approach. However, once this groundwork has been laid and your consumer data is precisely where both your sales and marketing teams need it to be, significant profits should soon be within reach thanks to a range of personalization benefits that we’ll be discussing here.
Incentivized open rates
In an age where consumers typically trawl through as many as six pieces of junk email a day, something as simple as a personalized subject heading has been proven to boost open rates by as much as 26%. That’s because unlike the countless impersonal and often ill-thought subjects of marketing emails, seeing their name is enough to give anyone pause, if just to check that this isn’t junk after all. And, once you’ve secured that initial hook, it’s far easier to reel in a sale that might have landed straight in your consumer’s junk box otherwise.
Increased ad relevance
By prioritizing personalization techniques like relevant recommendations or personalized discount codes within your emails, you make sure that those higher open rates never go to waste. That’s because, rather than expecting consumers to invest time in finding relevant products, you can immediately provide an informed view of the products most likely to interest them, as well as direct links that simplify potential purchases. As a result, you can sit back and enjoy transaction rates that can, if you get this right, be up to 6x higher.
Zooming in on all-important CLV
While upfront sales are perhaps the most obvious incentive for companies that prioritize the unforgettable customer experiences possible with personalization, even personalized emails that don’t result in sales can prove financially beneficial by building on all-important customer lifetime value (CLV). Fundamentally, it’s this lasting metric that determines how profitable customer relations are, and success here relies on the building of trusting, lasting relationships that see consumers coming back time and again. By helping you to stand out as a company that actually pays attention to what individuals want, personalized emails are invaluable for this, and can significantly increase the amount that consumers spend with you in the long run.
760% profit boosts might seem like a leap even with personalization in tow, but when you break these potential personalization profits down to size, it’s plain to see that those figures might not be far from reality, after all.