Three Stages Of Marketing Personalization
We’ve defined three stages of personalization – Stage I, II and III. These stages are divided by how sophisticated a brand’s level of personalization is as well as the amount of data a brand has to work with. In stage I for example, brands will have just started personalizing ads to individual consumers while at stage III, they’ll have a robust customer journey that personalizes ads across channels and for different stages of the marketing funnel. For each of these three stages, your brand will have different KPIs that are industry specific.
We should note that none of the following metrics are set in stone. Some brands are unique in their industry and require a different set of a KPIs. This blog is meant to be a solid starting point for guiding your choice of KPIs.
Ask yourself these questions
Which stage of personalization describes my brand?
At this stage, what are my marketing campaign’s objectives?
What KPIs are relevant for measuring success against these objectives?
By the end of this blog, you should have answers to the above questions with which you’ll be able to check the health of your personalization strategy effectively and how these KPIs are helping your brand grow their marketing ROI.
Mastering KPIs for Travel And Hospitality Industry
The travel and hospitality industry is similar to retail as they both have a lot of customer data at their disposal. However, the big difference between these two industries is that travel and hospitality features a range of advertising complexities. The prices are always in flux and the inventory is limited. Additionally, the business is very seasonal and there’s a service component beyond bookings and reservations.
That’s why travel and hospitality brands benefit a lot from DCO. They have more dynamic elements in their ads and communications, from time-bound price fluctuations and promotions to language and currency adjustments based on geolocation data. They require creative automation to produce these many ad variations and the ability to adjust ad elements quickly and ideally, with minimal manual intervention. Given the large amount of experimentation these brands perform on their ads, quick adjustments are even more critical.
For KPIs, brands we work with often use metrics like cost per booking or cost per passenger. There’s a lot of emphasis on returning users, customer lifetime value and as for measuring service, they use net promoter score.
At this stage, travel and hospitality brands have similar personalization efforts to those in the retail industry. They’re running prospecting and fairly simple retargeting campaigns. The prospecting campaigns may have a lot of dynamic elements such as: proximity to airports/stations, family compositions, themed communication of work vs leisure, budget estimated messaging, weather, time of day/day of week, etc.
Their main focus at this stage is to drive traffic to their website for the purpose of capturing more data and building brand awareness, while standing out in a very competitive crowded market.
This data will then be used to feed their retargeting campaigns. At this stage, these brands will likely be using promotional and seasonal offers to get consumers to return to their websites.
Essential KPIs: visibility (CTR) and branding (Video completion rate, viewability rate), brand recall and building, cost/impression, NPS.
In stage two, travel and hospitality brands are diving deeper into reducing cost per conversion and are deploying more sophisticated retargeting strategies. The primary goal of these retargeting campaigns is to re-engage potential customers who may be holding off on booking or considering options, with less ad spends while boosting conversions at the same time.
At this level of personalization, brands benefit a lot by using feeds to their maximum capability. Working with a DCO partner that helps them streamline workflow that bring together the several feeds is essential as these feeds will need to accurately reflect latest pricing, flight and hotel information, seasonal promotional offers and package details. Any latency here will reduce the relevancy to the consumer. Imagine clicking on an ad for a discount vacation in the Bahamas, only to find out that there’s no seats available for months.
Brands are also monitoring and comparing customer journeys across channels and in order to understand which channels are providing the best results in terms of engagement and conversions and which channels should be optimized. And with DCO, they’ll be able to assess which formats are performing better by channel for deeper optimization.
Essential KPIs: Conversion rate, cost per booking, passengers, abandonment rate, cost/site visit, site visit/click, site visit/engaged visit, cost/engaged visit, cost/conversion, average booking value.
This advanced stage of personalization is more customer focused for travel and hospitality brands. They’ll have established a full-funnel perspective, started using AI to make booking recommendations and are finessing an already streamlined workflow in their product feeds. They’ll be able to make adjustments to their campaigns to reflect promotions within minutes by making simple adjustments to their product and offer feeds.
But unlike other industries, travel and hospitality personalization doesn’t stop at conversions. Post-conversion is an extremely important stage where loyalty point programs and value-added services are introduced with the main goal to get customers to return and expand on customer loyalty. A lot of communications at this point are sent over email and personalization efforts will focus on their loyalty and membership program points as well as promotions.
The ultimate goal at this stage is to keep customers engaged with personalized ads such as “Hey, this is the number of points in your wallet and here’s how you can use them”. In a marketing world driven by first-party data, capitalizing on this customer loyalty data can be the ticket to sustained success.
Essential KPIs: ROAS, customer lifetime value, booking/engaged visits, number of returning users.