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Why We Love Them + Brand Examples

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Why We Love Them + Brand Examples

According to a 2021 McKinsey report, 76% of consumers get frustrated when they can’t find a personalized experience with a brand.

With personalization becoming more valuable to stand out from the competition, a look at some great examples can serve as inspiration for your own strategy.

Discover brands that are killing it at personalization and get a peek into how impactful it can be.

Why do we prefer personalized experiences?

Twilio’s 2022 State of Personalization report found that 49% of consumers say they will likely become repeat buyers after a personalized shopping experience with a retail brand.

Businesses also report that consumers spend more when they have a personalized experience. In fact, 80% of business leaders surveyed in Twilio’s report say that consumers spend an average of 34% more with a personalized experience.

Conversely, all it takes is one bad experience to deter a customer. One 2021 Zendesk CX report found that 50% of consumers will switch to a competitor following a negative brand interaction.

personalized marketing experiences: 50% of global consumers will switch to competitor after one bad experience.

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So, the question is, why is that? What is it about this type of experience that attracts consumers and why is it so fragile? One study may have the answer.

​​According to a study from the University of Texas, we can attribute our preference for personalized experiences to two key factors: desire for control and information overload. Let’s tackle “desire for control” first.

So, we know that a personalized experience – by its very nature – is in some way different from the status quo. You’re not just getting what everyone else is getting with personalization. Instead, you’re getting something tailored to you. And because of that, it makes you feel more in control.

Even if this sense of control is an illusion, it’s still powerful, and can have a positive effect on your psyche.

Now, let’s turn to the second factor mentioned in the University of Texas study: information overload. According to the study, personalization can help reduce this perception.

For example, when you know that the content being displayed on a website is tailored to you, it provides a more manageable framework for engagement. With personalization, you aren’t presented with thousands of resources to sort through and consume.

Instead, you are presented with exactly the information you were looking for. Hence, you never feel overloaded with information.

Now that you know the psychology behind personalized experiences and how effective they can be, let’s dive into some real-world examples.

Personalized Marketing Experiences

Personalization covers a wide range of strategies leveraged by brands both online and offline. Some brands take an omnichannel approach while others focus their efforts on specific channels.

To get a sense of what’s possible, here are a few examples of personalization:

  • Names in email subject lines and email content.
  • Location-based push notifications.
  • Welcome back messages on a website homepage.
  • Cart abandonment notifications.
  • CTAs based on buying cycle.
  • Product recommendations based on purchase and/or search history.
  • Customer loyalty programs.

According to the same McKinsey & Company report referenced earlier, the top five personalization actions consumers want are: easier online and in-store navigation, personalized product or service recs, tailored messages, relevant promotions, and personal milestone celebrations.

2021 Mckinsey&company report showing that consumers want brands to meet them where they are, know their taste, offer something unique, and check in with them.

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Let’s see those strategies applied by brands.

1. Sephora

When it comes to personalization, Sephora is one brand everyone looks to.

Over the years, the beauty retailer continues to optimize its omnichannel personalization strategy, ranking consistently among the top winners in Sailthru’s Retail Personalization Index for the past five years.

At the center of Sephora’s personalization is its mobile app. One of the first things you notice about the app is its ability to turn customer data (collected through quizzes and user behavior) into recommendations using predictive analytics.A look at sephora offering a personalized experience at every touchpoint

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The app houses data on in-store purchases, browsing history, purchases, and in-store interactions.

Where the brand really shines is in its ability to combine online and in-store to create a seamless, frictionless experience for shoppers.

The app invites users to find products in-store and book in-person consultations. Once in-store, customers will receive a log-in for the app to create a profile that includes the products they used. This way, they can always find the information they need for a future purchase.

In addition, Sephora has a loyalty program in which it offers exclusive access to products, events, and services based on their tier. At every touchpoint, users can track their loyalty points and get custom recommendations.

2. Netflix

Everyone’s Netflix account looks different when you log in.

That’s because the streaming service has made it a priority to personalize the user experience as they navigate the platform.

The first display of this is the large banner ad that displays when you first land on the app. It’s usually a trailer for a newly added show or movie – the difference is the selection is different for everyone.

For me, that might be the newly released season of Peaky Blinders since I’ve seen all previous seasons. For another, it might be something else.

As you scroll through the app, you’ll see two more personalized sections: “Because you watched” and “Picked for you.”

personalized experience on Netflix: the "because you watched" sectionpersonalized experience on Netflix: the "top picks" section

Through AI and machine learning, Netflix’s algorithm is programmed to suggest shows and movies based on a user’s watching history, including watch time and review.

What you end up with is a programming list with elements from content you’ve enjoyed in the past, making it easier to pick something new. Plus, it keeps you coming back for more.

That’s the beauty of the app – you know that everything is curated just for you based on your personal interests.

3. Amazon

If you currently oversee an ecommerce store, Amazon is a great model to get inspiration from.

This retailer has created an interface that offers relevant recommendations based on browsing and purchasing history.

When you first land on the homepage, you’ll have the option to navigate to the following sections:

  • Keep shopping for
  • Pick up where you left off
  • Buy it again
  • You might also like
  • Inspired by your wish list
  • Recommended for you

Every single one of these sections is personalized to the user based on their behavior on the site.

In addition to inferring information about its customers, Amazon will occasionally survey its users.

For instance, shortly after purchasing a product for my cat, the following question popped up on my homepage: “Do you own a dog or cat?” They explained that this information would be used to offer more personalized recommendations.

A key takeaway here is to fill in gaps in your data by reaching out to your users. This will be especially important if you’re using AI-powered software and need to feed it information to guide its algorithm.

Personalized experiences are the way of the now and the future. The earlier you jump on, the easier it will be to keep up with consumer behavior.

Editor’s Note: This post was originally published in Nov. 2014 and has been updated for comprehensiveness.

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How Does Success of Your Business Depend on Choosing Type of Native Advertising?

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How Does Success of Your Business Depend on Choosing Type of Native Advertising?

The very first commercial advertisement was shown on TV in 1941. It was only 10 seconds long and had an audience of 4,000 people. However, it became a strong trigger for rapid advertising development. The second half of the 20th century is known as the golden age of advertising until the Internet came to the forefront and entirely transformed the advertising landscape. The first commercial banner appeared in the mid-90s, then it was followed by pop-ups, pay-by-placement and paid-pay-click ads. Companies also started advertising their brands and adding their business logo designs, which contributes to consumer trust and trustworthiness.

The rise of social media in the mid-2000s opened a new dimension for advertising content to be integrated. The marketers were forced to make the ads less intrusive and more organic to attract younger users. This is how native advertising was born. This approach remains a perfect medium for goods and services promotion. Let’s see why and how native ads can become a win-win strategy for your business.

What is native advertising?

When it comes to digital marketing, every marketer talks about native advertising. What is the difference between traditional and native ones? You will not miss basic ads as they are typically promotional and gimmicky, while native advertising naturally blends into the content. The primary purpose of native ads is to create content that resonates with audience expectations and encourages users to perceive it seamlessly and harmoniously.

Simply put, native advertising is a paid media ad that organically aligns with the visual and operational features of the media format in which it appears. The concept is quite straightforward: while people just look through banner ads, they genuinely engage with native ads and read them. You may find a lot of native ads on Facebook, Twitter and Instagram – they appear in the form of “in-feed” posts that engage users in search for more stories, opinions, goods and services. This unobtrusive approach turns native ads into a powerful booster for any brand.

How does native advertising benefit your business?

An average Internet user comes across around 10,000 ads a day. But even physically, it is impossible to perceive this amount of information in 24 hours. So, most of them use adblockers, nullifying all efforts of markers. Native ads successfully overcome this digital challenge thanks to their authenticity. And this is not the only advantage of native advertising. How else does your business benefit? Here are just a few major benefits that prove the value of native ads:

Better brand awareness. Native ads contribute to the brand’s visibility. They seamlessly blend into educational, emotional, and visual types of content that can easily become viral. While promotional content typically receives limited shares, users readily share valuable or entertaining content. Consequently, while you incur expenses only for the display of native ads, your audience may go the extra mile by sharing your content and organically promoting your brand or SaaS product at no additional cost.

Increased click-through rates. Native ads can generate a thrilling click-through rate (CTR) primarily because they are meticulously content-adaptable. Thus, native ads become an integral part of the user’s journey without disrupting their browsing experience. Regardless of whether your native advertising campaign is designed to build an audience or drive specific actions, compelling content will always entice users to click through.

Cost-efficient campaign performance. Native advertising proves to be cheaper compared to a traditional ad format. It mainly stems from a higher CTR. Thanks to precise targeting and less customer resistance, native ads allow to bring down cost-per-click.

Native ads are continuously evolving, enabling marketers to experiment with different formats and use them for successful multi-channel campaigns and global reach.

Types of native advertising

Any content can become native advertising as there are no strict format restrictions. For example, it can be an article rating the best fitness applications, an equipment review, or a post by an influencer on a microblog. The same refers to the channels – native ads can be placed on regular websites and social media feeds. Still, some forms tend to be most frequently used.

  • In-feed ads. This type of ad appears within the content feed. You have definitely seen such posts on Facebook and Instagram or such videos on TikTok. They look like regular content but are tagged with an advertising label. The user sees these native ads when scrolling the feed on social media platforms.
  • Paid search ads. These are native ads that are displayed on the top and bottom of the search engine results page. They always match user’s queries and aim to capture their attention at the moment of a particular search and generate leads and conversions. This type of ad is effective for big search platforms with substantial traffic.
  • Recommendation widgets. These come in the form of either texts or images and can be found at the end of the page or on a website’s sidebar. Widgets offer related or intriguing content from either the same publisher or similar sources. This type of native ads is great for retargeting campaigns.
  • Sponsored content. This is one of the most popular types of native advertising. Within this format, an advertiser sponsors the creation of an article or content that aligns with the interests and values of the platform’s audience. They can be marked as “sponsored” or “recommended” to help users differentiate them from organic content.
  • Influencer Advertising. In this case, advertisers partner with popular bloggers or celebrities to gain the attention and trust of the audience. Influencers integrate a product, service, or event into their content or create custom content that matches their style and topic.

Each of these formats can bring stunning results if your native ads are relevant and provide value to users. Use a creative automation platform like Creatopy to design effective ads for your business.

How to create a workable native ad?

Consider these 5 steps for creating a successful native advertising campaign:

  • Define your target audienceUsers will always ignore all ads that are not relevant to them. Unwanted ads are frustrating and can even harm your brand. If you run a store for pets, make sure your ads show content that will be interesting for pet owners. Otherwise, the whole campaign will be undermined. Regular market research and data analysis will help you refine your audience and its demographics.
  • Set your goals. Each advertising campaign should have a clear-cut objective. Without well-defined goals, it is a waste of money. It is a must to know what you want to achieve – introduce your brand, boost sales or increase your audience.
  • Select the proper channels. Now, you need to determine how you will reach out to your customers. Consider displaying ads on social media platforms, targeting search engine result pages (SERPs), distributing paid articles, or utilizing in-ad units on different websites. You may even be able to get creative and use email or SMS in a less salesy and more “native”-feeling way—you can find samples of texts online to help give you ideas. Exploring demand side platforms (DSP) can also bring good results.
  • Offer compelling content. Do not underestimate the quality of the content for your native ads. Besides being expertly written, it must ideally match the style and language of the chosen channel,whether you’re promoting professional headshots, pet products, or anything else. The main distinctive feature of native advertising is that it should fit naturally within the natural content.
  • Track your campaign. After the launch of native ads, it is crucial to monitor the progress, evaluating the costs spent and results. Use tools that help you gain insights beyond standard KPIs like CTR and CPC. You should get engagement metrics, customer data, campaign data, and third-party activity data for further campaign management.

Key takeaway

Summing up the above, it is time to embrace native advertising if you haven’t done it yet. Native ads seamlessly blend with organic content across various platforms, yielding superior engagement and conversion rates compared to traditional display ads. Marketers are allocating higher budgets to native ads because this format proves to be more and more effective – content that adds value can successfully deal with ad fatigue. Native advertising is experiencing a surge in popularity, and it is to reach its peak. So, do not miss a chance to grow your business with the power of native ads.or you can do digital marketing course from Digital Vidya.

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OpenAI’s Drama Should Teach Marketers These 2 Lessons

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OpenAI’s Drama Should Teach Marketers These 2 Lessons

A week or so ago, the extraordinary drama happening at OpenAI filled news feeds.

No need to get into all the saga’s details, as every publication seems to have covered it. We’re just waiting for someone to put together a video montage scored to the Game of Thrones music.

But as Sam Altman takes back the reigns of the company he helped to found, the existing board begins to disintegrate before your very eyes, and everyone agrees something spooked everybody, a question arises: Should you care?

Does OpenAI’s drama have any demonstrable implications for marketers integrating generative AI into their marketing strategies?

Watch CMI’s chief strategy advisor Robert Rose explain (and give a shoutout to Sutton’s pants rage on The Real Housewives of Beverly Hills), or keep reading his thoughts:

For those who spent last week figuring out what to put on your holiday table and missed every AI headline, here’s a brief version of what happened. OpenAI – the huge startup and creator of ChatGPT – went through dramatic events. Its board fired the mercurial CEO Sam Altman. Then, the 38-year-old entrepreneur accepted a job at Microsoft but returned to OpenAI a day later.

We won’t give a hot take on what it means for the startup world, board governance, or the tension between AI safety and Silicon Valley capitalism. Rather, we see some interesting things for marketers to put into perspective about how AI should fit into your overall content and marketing plans in the new year.

Robert highlights two takeaways from the OpenAI debacle – a drama that has yet to reach its final chapter: 1. The right structure and governance matters, and 2. Big platforms don’t become antifragile just because they’re big.

Let’s have Robert explain.

The right structure and governance matters

OpenAI’s structure may be key to the drama. OpenAI has a bizarre corporate governance framework. The board of directors controls a nonprofit called OpenAI. That nonprofit created a capped for-profit subsidiary – OpenAI GP LLC. The majority owner of that for-profit is OpenAI Global LLC, another for-profit company. The nonprofit works for the benefit of the world with a for-profit arm.

That seems like an earnest approach, given AI tech’s big and disruptive power. But it provides so many weird governance issues, including that the nonprofit board, which controls everything, has no duty to maximize profit. What could go wrong?

That’s why marketers should know more about the organizations behind the generative AI tools they use or are considering.

First, know your providers of generative AI software and services are all exploring the topics of governance and safety. Microsoft, Google, Anthropic, and others won’t have their internal debates erupt in public fireworks. Still, governance and management of safety over profits remains a big topic for them. You should be aware of how they approach those topics as you license solutions from them.

Second, recognize the productive use of generative AI is a content strategy and governance challenge, not a technology challenge. If you don’t solve the governance and cross-functional uses of the generative AI platforms you buy, you will run into big problems with its cross-functional, cross-siloed use. 

Big platforms do not become antifragile just because they’re big

Nicholas Taleb wrote a wonderful book, Antifragile: Things That Gain From Disorder. It explores how an antifragile structure doesn’t just withstand a shock; it actually improves because of a disruption or shock. It doesn’t just survive a big disruptive event; it gets stronger because of it.

It’s hard to imagine a company the size and scale of OpenAI could self-correct or even disappear tomorrow. But it can and does happen. And unfortunately, too many businesses build their strategies on that rented land.

In OpenAI’s recent case, the for-profit software won the day. But make no bones about that victory; the event wasn’t good for the company. If it bounces back, it won’t be stronger because of the debacle.

With that win on the for-profit side, hundreds, if not thousands, of generative AI startups breathed an audible sigh of relief. But a few moments later, they screamed “pivot” (in their best imitation of Ross from Friends instructing Chandler and Rachel to move a couch.)

They now realize the fragility of their software because it relies on OpenAI’s existence or willingness to provide the software. Imagine what could have happened if the OpenAI board had won their fight and, in the name of safety, simply killed any paid access to the API or the ability to build business models on top of it.

The last two weeks have done nothing to clear the already muddy waters encountered by companies and their plans to integrate generative AI solutions. Going forward, though, think about the issues when acquiring new generative AI software. Ask about how the vendor’s infrastructure is housed and identify the risks involved. And, if OpenAI expands its enterprise capabilities, consider the implications. What extra features will the off-the-shelf solutions provide? Do you need them? Will OpenAI become the Microsoft Office of your AI infrastructure?

Why you should care

With the voluminous media coverage of Open AI’s drama, you likely will see pushback on generative AI. In my social feeds, many marketers say they’re tired of the corporate soap opera that is irrelevant to their work.

They are half right. What Sam said and how Ilya responded, heart emojis, and how much the Twitch guy got for three days of work are fodder for the Netflix series sure to emerge. (Robert’s money is on Michael Cera starring.)

They’re wrong about its relevance to marketing. They must be experiencing attentional bias – paying more attention to some elements of the big event and ignoring others. OpenAI’s struggle is entertaining, no doubt. You’re glued to the drama. But understanding what happened with the events directly relates to your ability to manage similar ones successfully. That’s the part you need to get right.

Want more content marketing tips, insights, and examples? Subscribe to workday or weekly emails from CMI.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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The Complete Guide to Becoming an Authentic Thought Leader

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The Complete Guide to Becoming an Authentic Thought Leader

Introduce your processes: If you’ve streamlined a particular process, share it. It could be the solution someone else is looking for.

Jump on trends and news: If there’s a hot topic or emerging trend, offer your unique perspective.

Share industry insights: Attended a webinar or podcast that offered valuable insights. Summarize the key takeaways and how they can be applied.

Share your successes: Write about strategies that have worked exceptionally well for you. Your audience will appreciate the proven advice. For example, I shared the process I used to help a former client rank for a keyword with over 2.2 million monthly searches.

Question outdated strategies: If you see a strategy that’s losing steam, suggest alternatives based on your experience and data.

5. Establish communication channels (How)

Once you know who your audience is and what they want to hear, the next step is figuring out how to reach them. Here’s how:

Choose the right platforms: You don’t need to have a presence on every social media platform. Pick two platforms where your audience hangs out and create content for that platform. For example, I’m active on LinkedIn and X because my target audience (SEOs, B2B SaaS, and marketers) is active on these platforms.

Repurpose content: Don’t limit yourself to just one type of content. Consider repurposing your content on Quora, Reddit, or even in webinars and podcasts. This increases your reach and reinforces your message.

Follow Your audience: Go where your audience goes. If they’re active on X, that’s where you should be posting. If they frequent industry webinars, consider becoming a guest on these webinars.

Daily vs. In-depth content: Balance is key. Use social media for daily tips and insights, and reserve your blog for more comprehensive guides and articles.

Network with influencers: Your audience is likely following other experts in the field. Engaging with these influencers puts your content in front of a like-minded audience. I try to spend 30 minutes to an hour daily engaging with content on X and LinkedIn. This is the best way to build a relationship so you’re not a complete stranger when you DM privately.

6. Think of thought leadership as part of your content marketing efforts

As with other content efforts, thought leadership doesn’t exist in a vacuum. It thrives when woven into a cohesive content marketing strategy. By aligning individual authority with your brand, you amplify the credibility of both.

Think of it as top-of-the-funnel content to:

  • Build awareness about your brand

  • Highlight the problems you solve

  • Demonstrate expertise by platforming experts within the company who deliver solutions

Consider the user journey. An individual enters at the top through a social media post, podcast, or blog post. Intrigued, they want to learn more about you and either search your name on Google or social media. If they like what they see, they might visit your website, and if the information fits their needs, they move from passive readers to active prospects in your sales pipeline.

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