In recent years, the partnership industry has seen tremendous growth, with more companies and organizations gaining a better understanding of its importance in propelling growth. Unlike past years when the industry was viewed as a low-tech zone, now numerous tech advances have been made.
Here is why pursuing personalization incentives will help you attain better results in the new partnership economy:
It leads to more sales and profit
Several studies indicate that personalized information provides businesses with increased conversion rates, acquisition, and Average Order Value (AOV). With high conversion rates as well as AOV, you can expect your company to yield even more sales than ever before.
Also, you should know that creating personalized experiences in your business are bound to increase customer satisfaction and even higher CVRs. It is important to know that higher levels of personalization in business tend to create a competitive advantage.
This means that your business is bound to retain and win even more customers than your competitors since only one brand is able to build better personalized experiences with its first-party data.
Availability of more performance-based data and tools
Another reason you should pursue personalized incentives in this new partnership economy is that nowadays, there are even more performance-based tools you can use to personalize your brand.
This is because affiliate and partnerships are among the most popular channels in which you can test and adopt new technologies. As a result, several personalization providers have learned about the need to have partnership leaders.
This has helped them develop their business models so that they can work for entrepreneurs like you. However, before you can decide on the ideal personalization provider for your business, there are some important factors you need to consider.
You need to ensure that the personalization provider is paid on performance, has no tenancy fees, no UI/UX changes required, is proven in your sector or adjacent sectors, has no complex integration procedures, and includes managed service as well as creative services.
It incorporates 1-2-1 communications
One of the biggest strengths a company can possess is delivering personalized experiences to all its customers. However, many companies have not succeeded in reaching this feat. Up to date, most companies can only offer segmentation to their customers and not actual personalized experiences.
This means that customers get to be assigned to behavior segments, and they receive promotional messages based on those segments. While you might view this as progress, it doesn’t quite capture the main idea behind personalization.
Fortunately, new solutions can break down and analyze different customer signals and deliver an exact 1-2-1 communication to each customer.
It is this kind of personalization that is responsible for increased sales volume and profit for entrepreneurs. It might interest you to know that such technologies are made possible by the kind of data your business already collects every day.
Helps reduce operational costs and improves retail margins
It is quite easy to be confused about how promotions and discounts help businesses. Most people view promotions as a way of helping customers lower the costs of commodities rather than improving acquisitions or even margins.
The hidden truth is that such promotions also help businesses improve their margins and increase their profits in the long run. Millions of customers across the globe are always on the lookout for the offer code box and discount codes available on vouchers as well as coupon sites.
In order to compete with other brands, businesses are forced to opt for blanket promotions which in the end lead to reduced profits. Fortunately, with personalization, businesses can now opt for bespoke offers in place of blanket promotions.
Since bespoke offers can be personalized to meet the customer’s interests and needs, it helps encourage cross-selling and upselling. This means that the offers can be adjusted to match the business’s profit and revenue goals.
Most businesses are now dependant on affiliates and partnerships in order to achieve the growth they want. However, before you embark on this, ensure that you have every tool and technology available to help you attain the results you want.