Personalization is everywhere. From grocery store receipts to Amazon recommendations to direct mail pieces that arrive in the mailbox, 
companies are personalizing their communications to address their customers’ individual needs and habits. But is it vital? If you’ve got a great product, isn’t that enough?
To answer this question, let’s look at the psychology behind personalization.
Personalized communications make your customers feel that you care about them. For example, talking to someone by name takes more time and effort (“Hi, Jane! We have a special offer just for you!”). Not every marketing communication does that, especially in print. The extra effort gets noticed.
Second, if you take the time to gather the recipient’s needs and wants, that gets noticed, too. Irrelevant marketing communications make someone feel like a number. On the other hand, when you communicate information that reflects their interests and needs, what you are saying is, “You are unique.” This makes people feel noticed and valued.
When customers feel noticed and valued, they are more likely to respond. That’s why personalized campaigns get better results. One study, for example, found the following lift for personalized over static mailing campaigns:
- Lead generation: 6.9%
- Direct orders: 6.2%
- Traffic generation: 14.7%
Once you acquire a customer based on personalized communication, if you treat them right, they are more likely to remain a customer over time. This has a significant impact on your profitability, too. Did you know that, on average, a repeat customer is worth 10x more over the life of a business relationship than their initial purchase?