Ads Vs. Customer Care: The Next Generation of Digital Comms

Graphic of advertising vs. digital customer care

The world of marketing is no stranger to data. From demographics to consumer behavior, facts and figures about customers are the backbone behind efforts to create the best products, campaigns and more.

Advertising, in particular, is thriving in this era of information. Dynamic ads driven by customer data are more effective than generic messages, so it’s no surprise that brands have rushed to invest in data-driven advertising.

But in that race to boost advertising, an important aspect of the customer experience became neglected: customer care. Bringing a data-driven approach to this area of the customer experience will be a defining factor in the next generation of digital communications — just as it’s been part of advertising now for years.

The Reign of Data-Driven Advertising

By allowing data and insights to inform their campaigns, brands can launch effective ads that are hyper-targeted to the individual consumer.

Just think about Facebook ads. With billions of users, the social platform is the gatekeeper to a wealth of data. Tapping into that user data, brands can share ads on Facebook and Instagram that are relevant and engaging for each individual.

As you might have gathered, this post isn’t mainly about advertising, but if you’re curious how it works, this video explains it pretty well.

Beyond social media, Google Ads have similarly dominated as a data-driven advertising channel. With ads tied to recent fresh online activity, brands can connect with customers through content that’s top-of-mind for them.

The success of data-driven advertising boils down to relevance. Even amidst concerns about privacy, consumers want to be treated like individuals, not a number. In fact, 66% of customers expect companies to understand their unique needs and expectations, according to Salesforce.

But advertising is only one touchpoint. A Dynamic Video Ad may bring in a new customer, but it won’t keep them happy throughout their customer experience. It’s time to bring data-driven personalization into customer care.

Transforming Customer Care Through Data-Driven Communications

From its impact on profits to the potential for cost savings, customer retention efforts have every reason to be prioritized. Yet often, customer care is neglected in favor of advertising, especially when it comes to the effective use of data.

It’s a perplexing reality, especially when you consider how important focusing on your current customers’ experience can be:

  • PwC found that a third of customers will leave a brand they love after just one bad experience, while nearly half would completely abandon a company after 2-3 negative interactions.
  • Acquiring a new customer can be anywhere from 5x to 25x more expensive than retaining an existing one.
  • Among U.S. customers, 65% find a positive experience with a brand to be more influential than great advertising.
  • Increasing customer retention rates by 5% could increase profits by 25% to 95%, according to research done by Bain & Company

Fortunately, there are companies blazing a new trail on this front. These are the brands that leverage data to create engaging visual communications that tap into actionable insights and empower personalized experiences for their customers.

Rather watch than read? I spoke about this at a conference, explaining how the digital communications landscape is being transformed.

Ultimately, the future of digital comms is about a value-added, personalized, engaging CX, and your customer service experience is part of that.

Think back to all those times you’ve had an issue with a brand and went looking for resolution. Between emails, call centers and FAQ pages, did you get your answer quickly? Was it seamless, stress-free, immediate? How many of us have really experienced personalized customer service, available 24/7 on demand?

Don’t make your customer reintroduce themselves and their issue over and over again. Instead, offer personalized customer service on demand.
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It’s time for that to change.

You have loads of information on your current customers. Why not make use of those insights to provide them with truly helpful and relevant support? Don’t make them jump through hoops and reintroduce themselves and the issue they’re having over and over again just to get an answer. Draw from your data to provide them with personalized solutions and service.

From onboarding videos customized for each new client to messages that address upcoming or common challenges, digital personalization is one way to add a human touch back to customer service.

See how Bupa’s Personalized Video message inspires greater understanding than a generic text email? It’s also proactive — addressing customer concerns before they hit your call center.

But customer care and advertising aren’t as different as you think. If ads are all about revenue, customer communications are a powerhouse for retention, revenue and CX.

Want to drive conversions? Tailor your cross-selling and upselling efforts to your customers’ unique situations. We’ll take another example from insurance here. Bank-insurer KBC was able to reach out to customers who they provided a car loan to with an additional offer: insurance coverage, available at a discount.

Beyond cross-selling, you might use personalization to upgrade your loyalty efforts, driving revenue and retention for the long term.

The takeaway? Think outside the box and imagine all the ways your data and insights can be used to bring your customers better, more personalized experiences at every touchpoint.

The Next Level of Digital Customer Care

Yes, advertising can be dynamic and data-driven — and that’s great.

But customer care and communications can be even more data-driven, not just segmented for a type of user but personalized for the specific individual. Top-notch customer service and seamless CX are the earmarks of a loyal customer base that supports a healthy bottom line. It’s time our communication efforts reflected that reality.

So put your data to work. Our Next Generation Video Platform is purpose-built for the world of data-driven video communications. It’s now easier than ever to create Personalized Videos at scale and in real time.

See for yourself by requesting a demo from one of our experts.

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Yotam Benami

In his role as Idomoo's CMO, Yotam is responsible for supporting the company's continued growth in its core Enterprise market and for driving its fast-growing platform business.