Hello, OptiMIST People!
Back at it again with KaMIST! Your weekly dose of insights into the latest marketing trends. In this week’s KaMIST, we’ll dive deep into Granular Personalization in Marketing.
Marketers have long used personalization, and it has been shown to improve customer experience. According to research by Constellation, a lack of content relevancy in the average marketing campaign results in an 83% lower response rate. Consequently, relevance in marketing is pivotal to its success. With the support of the ever-evolving technology, companies can obtain information regarding users’ activities and interests conveniently. This enables companies in the current market to move from simple personalization to granular personalization.
Micro-segmentation, which is nothing more than narrowing down to smaller, niche pockets of micro audiences under the greater umbrella of the target audience, is the first step towards granular personalization. This will allow companies to know more about their users’ liking hence delivering a greater user experience.
Now, can you mention one company that has successfully implemented this strategy? Correct! It is none other than, the one and only, Spotify.
According to MIDiA Research Music Subscriber Market Share, which uses data from Q2 2021, Spotify was by far the most popular music streaming service, taking a total of 31% of the market. Apple Music comes in second, with a respectable 15%. Third place is a tie between Amazon Music and Tencent Music with 13%. YouTube Music comes in next with 8%, and then the smaller services fill out the remaining market share.
Granular personalization and personalized targeting are the reasons that lie behind Spotify’s success in becoming the most popular music streaming platform. Being customer-centric, giving their subscribers a personalized experience i.e. personalized playlists such as “Made For You,” “On Repeat,” “Daily Mix,” and the yearly popular content, Spotify Wrapped, makes Spotify stand out amongst the other music streaming platforms. Customizing content helps to build trust, and apart from having well-made content, it’s an essential factor to consider. This approach makes the subscribers feel valued, helps to show that they’re being heard, and, most importantly, understood.
While granular personalization in smaller companies’ marketing strategies may not be possible due to various constraints, they should start planning for it. Though this strategy is more effective to be implemented by companies in the media entertainment field, according to the present marketing landscape, granular personalization will become more prominent in the near future, and early adoption of this strategy will be the only way to stay ahead of the curve.
Do you think granular personalization is the key to success in marketing?
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