From strategy to execution
Making personalization theory a reality – turning insights into action to drive growth, loyalty, and lasting success
Chapter 01
Collecting zero-party data
As we’ve seen throughout the five stages of the customer lifecycle, zero-party data is the vital fuel for the engine of brand engagement. It allows marketers to understand not just what customers have done in the past but also what they intend to do in the future.
This type of data is collected by connecting directly with customers. Rather than making inferences and assumptions, brands simply ask for the information by presenting consumers with a meaningful value exchange: ‘we’ll give you rewards/ offers/ better experiences if you hand over your data.’ And repeat. The data, insights, and permissions that customers provide can then be used to power personalized marketing.
“The collection and effective use of zero-party data is a hidden gem in the toolkit for marketers. Utilizing data that has been self-reported and obtained in an open, transparent way builds trust. It deepens loyalty with your brand through its use of personalization that’s unique to the individual, and supports an uplift in the metrics that matter, such as click-through, engagement, and conversion rates.“
Smart, not stalkerish data collection
Gathering zero-party data calls for a thoughtful and strategic approach. Brands should strive to create personalized experiences that are easy, transparent, and of value to the consumer, making sure they understand how their data will be used and how sharing it benefits them.
But there’s a fine line between when it’s cool and when it’s creepy, when it works and when it feels weird. Consumers love tailored experiences that feel relevant, helpful, and expected, but they back off when brand communications feel presumptive, invasive, or poorly targeted.
Consumers are all for personalized product recommendations (73%) and birthday offers (80%), which feel thoughtful and natural. But tracking tactics make them uneasy:
dislike ads based on third-party cookies
find location-based ads from unknown brands intrusive
feel instant promotions (within two minutes of visiting a site) are too aggresive
Instead:
- Be transparent: don’t use hidden tracking. Tell customers how their data improves their experience
- Get the timing right: give users time to explore before triggering a promotion.
- Let customers take the lead: allow users to set their preferences for content and recommendations, keeping personalization in their control
- Offer clear opt-outs: let customers adjust their data settings and easily manage the messages they receive
“Great marketing thrives on trust. Brands must embrace personalization without overstepping into intrusion. Brands that are winning prioritize meaningful connections over short-term gains to build lasting loyalty and customer advocacy.”
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Chapter 02
Making AI work in personalization
AI is reimagining what’s possible for marketers, allowing brands to serve up the right offer or promotion to the right consumer at the right time, at scale. For example, Marigold AI can be used as a:
- Product amplifier: automating tasks, streamlining workflows, generating creative assets
- Engagement accelerator: personalizing experiences at scale, enhancing customer engagement
- Strategic advisor: using data and predictive analytics to discover new audience segments, anticipate audience needs, and make more informed decisions
However, consumers are torn about when AI is used to communicate with them. They appreciate the end result of a more relevant, helpful brand experience, particularly when convenience or a sense of exclusivity is offered. For example, dynamic offers and personalized product recommendations are among the most appealing uses of AI, with many consumers valuing how these features create a seamless and tailored experience.
At the same time, though, data privacy and transparency remain a concern. Consumers like brands to feel authentic. But speaking to a machine does not necessarily feel like an authentic brand experience.
"AI presents a powerful opportunity to optimize operations, enhance targeting, and predict behaviors. To truly unlock its potential, marketers must embrace experimentation while ensuring a strong foundation of quality data because great AI starts with great data."
Tech with tact: AI etiquette
- Keep the customer at the center of an AI strategy: AI personalization works best when it enhances relevance without being overly familiar or intrusive. By embracing tailored recommendations, adaptive web content, and visually engaging customizations, brands can bring a fresh, appealing dimension to consumer interactions
- Contextual relevance is essential: think of it as a progressive conversation, keeping in mind what would be reasonable for you to know about the customer at each stage of the dialogue. That will help make interactions feel useful without being invasive
- Use visual personalization: capture customers with visual content that matches their interests in real time. Younger audiences embrace AI-generated images and tailored social updates, enjoying digital experiences that reflect their style. But hyper-personalized touches, like name-dropping in ads or location-based messaging, can feel intrusive, especially to older demographics
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Chapter 03
Investing in owned channels
In today’s fast-changing digital landscape, investing in owned channels like email, SMS, websites, and mobile apps is more critical than ever for marketers. Increasing data privacy regulations, rising customer acquisition costs, and the unpredictability of social media algorithms mean it’s harder to rely solely on paid and third-party platforms to engage an audience.
Why owned channels win
Owned channels provide direct, cost-effective, and sustainable customer engagement, allowing full control over messaging, audience segmentation, and personalization. This leads to higher engagement, better conversion rates, and increased customer loyalty.
Another benefit is the collection of first-party and zero-party data. Dynamic email campaigns, personalized SMS offers, and adaptive website content gather the insights needed to create hyper-relevant experiences.
Ultimately, owned channels drive better ROI. They reduce dependency on costly ad platforms and provide brands a direct, cost-effective way to engage customers – something that’s increasingly essential in a digital marketing landscape that is growing more fragmented.
Beyond the scroll – the channels that drive sales
Today’s customers expect seamless experiences across all channels. Relying on just one channel is a risky approach. A smart, cross-channel approach is essential: it’ll connect with customers wherever they are, whether in their inbox, feed, or messages.
But which channels are the top performers?
Email reigns supreme
Trends shift, and new platforms emerge, but email just keeps delivering. Year after year, email remains the most reliable, cost-effective, and high-converting channel in the game.
Over the past year, more respondents made a purchase from an email (54%) than from any other channel, including social media ads (44%) or posts (43%), SMS/MMS messages (26%), mobile app alerts (22%), and banner ads (17%).
That’s because email isn’t just another platform; it’s woven into customers’ everyday lives. From account sign-ups to digital receipts, consumers expect to engage with brands in their inboxes. Unlike social media, where they can unplug, email is always there – but only if it delivers value. However, consumers won’t hesitate to unsubscribe if the content is irrelevant.
The good news is that personalization tech has given email an even sharper edge. Brands that leverage smart segmentation, automation, and hyper-relevant content are reaping the rewards, driving real engagement and revenue at scale.
However, today’s consumers move fluidly between channels, and they expect your brand to do the same. While email deserves special attention, it can't stand alone. It drives the strongest results when it's part of a seamless, connected experience.
See Roll out the red carpet – the power of a Great Welcome in section two for more info on email welcome journeys.
The social surge
Social media isn’t just for scrolling. It’s a shopping playground, especially for younger consumers. Over half (53%) of 18–24-year-olds and 54% of 25–34-year-olds have purchased directly from a social media ad. The message is clear – social commerce is non-negotiable if you’re targeting Gen Z or millennials.
“Email offers a powerful, curated way to engage customers with precision. But as younger audiences gain wallet share, brands must find the right balance investing in the channels that matter most to each audience to deliver relevant and impactful experiences.”
SMS and mobile alerts: the quick-action players
SMS and mobile app alerts may not lead the pack, but they add value as supporting players – especially when it comes to immediacy. Around one in four consumers have purchased from a text, with younger audiences slightly more engaged. Think flash sales, last-minute deals, and timely nudges.
Meanwhile, banner ads and app alerts act as subtle reminders to keep brands top of mind, even if they don’t drive the bulk of conversions.
“When looking to serve the modern consumer, brands must ensure that they drive both the awareness of value and the ability to obtain it in any environment. We often say: follow the eyes, the ears, and the thumbs. Mobile channels offer a conduit to achieve this, allowing brands to meet customers in their native, habitual environments, removing friction from every customer interaction."
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