What is personalization in marketing

ROI insights

Personalisation in marketing isn’t about using a customer’s name in an email – although that’s a start! It’s about delivering marketing experiences tailored to each individual’s needs, behaviours, and preferences. For Australian SMEs focused on customer retention, it’s a powerful strategy to build loyalty and increase lifetime value. We’ve seen businesses significantly improve results by moving beyond broad segmentation to truly individualised approaches.

Think about it: customers are bombarded with marketing messages daily. Generic blasts are easily ignored. But when a message feels relevant *to them*, it cuts through the noise. Personalisation achieves this by leveraging data to understand what each customer wants, and then delivering content, offers, and experiences that resonate.

Here are a few key insights for SMEs:

  • Data is your foundation: You need to collect and analyse customer data – purchase history, website activity, email engagement, even social media interactions. Customer Relationship Management (CRM) systems are incredibly valuable here, allowing you to centralise this information.
  • Behavioural triggers are powerful: Don’t just send emails on birthdays. Send them when a customer abandons a shopping cart, browses a specific product category, or hasn’t engaged with your brand for a while. These ‘behavioural triggers’ show you’re paying attention.
  • Dynamic content is essential: Instead of creating multiple versions of an email, use dynamic content to change elements based on the recipient. For example, show different product recommendations based on past purchases.
  • Personalisation extends beyond email: Consider personalised website experiences, product recommendations on your online store, and even tailored customer service interactions.

We understand that many SMEs worry about the complexity and cost of personalisation. However, there are affordable tools available, and you can start small. Begin by personalising your email marketing, then gradually expand to other channels. The key is to focus on delivering value to each customer, making them feel understood and appreciated. Investing in personalisation now will pay dividends in increased customer retention and revenue growth, positioning you strongly for continued success in 2026 and beyond.

To get started, we recommend auditing your current customer data and identifying one area where you can implement a simple personalisation tactic. A targeted email campaign based on recent purchases is a great first step.

The bottom line

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