Former Spotify marketing executive Mayur Gupta is passing up playlists for plates in a new role as chief marketing officer at meal kit subscription service startup Freshly, citing “data at the core and delivering personalized experiences” as the golden nugget of potential he sees in the company. However, though Gupta may have realized the prospects of personalization, many brands have not.
It’s true that 92% of brands know the importance of meeting consumer expectations, identifying personalization as a top priority in Gartner L2’s report on data and targeting. However, they continue to struggle with execution — in 2018, only 23% of brands in the study personalized their websites with recommendations based on user data inputs.
It’s not just CPG, food, and beverage brands who can benefit from personalization via data and targeting; the tactic can be applied to brands of all verticals. To do so, brands need to leverage their customer databases to serve highly targeted messages across their sites and digital marketing channels. H&M and Ikea, for example, collect segmentation data through third parties and their own sites while also communicating how the data is used.
Despite concerns about data privacy, consumers continue to crave relevant messaging and tune out what they consider irrelevant across brand sites, email, social media and display advertising. Gupta’s hunch about the potential of personalization highlights the importance of targeting and data, but it also brings to light the dangers of privacy breaches. Brands aiming to amplify products through personalization should use their own site portals as the primary method of collection to maintain control over their customer datasets and enable customers to consent to usage.