WHEN THE SPIELBERG FILM “MINORITY REPORT” CAME OUT a few years ago, one of the most talked about aspects of the film wasn’t its stars, but its futuristic displays of personalized advertising. As Tom Cruise’s character passes digital billboards, the ads call out his name, seem to sense his mood and recommend relevant products. This extreme example of targeted marketing takes place in 2054. But, in other forms, the power of personalization exists now. Marketers may not be using retinal scans as depicted in the film, but far less intrusive technology has risen to meet the demands of more complex, more individualized consumer needs.

Climate of customization
The future of marketing is establishing a connection with customers on a one-to-one level. Customers are intent on customizing their experience - fashion, entertainment, travel, finances - and companies are scrambling to oblige. As one-to-one becomes the norm, not the anomaly, customers become conditioned to personalized experiences from companies who remember their preferences, purchase habits and personal information.

Marketers may have no choice but to pursue personalization, or risk being ignored. According to Forrester Research, 79 percent of consumers feel there are too many ads, and 63 percent feel mass advertising is not relevant to them. Companies who know their customers and utilize that information can capture consumer interest amid a world of clutter.

Responding to the call for relevancy can seem intimidating at first. Fortunately for marketers everywhere, you have many personalization tools at your disposal. And getting started is easier than you may think.

Dissecting one-to-one
Known as the "Holy Grail" of direct marketing, one-to-one is defined as the use of customer preferences and purchase history to create individualized offers, messages and customer experiences. It's a concept that can be misused or misunderstood simply because varying levels of personalization exist. What differentiates one-to-one is the individual focus.

Depending on a customer's preferred format, one-to-one can be realized through both print and online channels. For mailers, variable data printing (VDP) uses state-of-the-art digital presses and data management software to fully customize each piece - from text to full-color graphics. For example, a personalized newsletter would feature different articles and images for each customer depending on his/her profile. The personalized newsletters come off the press one by one, each dynamically produced so there is no waste.

In the online channel, advanced programming can marry customer data with profiles the customers themselves create - and then dynamically deliver content based on this insight. (See DigitalDigest for more insights on online personalization.)

At the highest levels of relevant communications, one-to-one can deliver big results in customer response and retention. Full-color personalization can lift response rates by 500 percent when used effectively, thus increasing your ROI. But it's not the only tool, nor is it always the best way to make a personal connection. As we examine when to invest in one-to-one, consider the different levels of personalization in this chart.

Weighing the investment
Because of the resources involved, one-to-one isn’t the answer for every customer or situation. Although it would be ideal if every piece could be personalized, one-to-one can best be utilized for high-value opportunities where it’s critical that an offer be targeted or customer information communicated.

In deciding when to use one-to-one, consider two factors: the degree of segmentation — is the touchpoint something that fits most customers? — and the value of the desired result, meaning the entire customer relationship hinges on its success.

For example, general brand messages speak to the customer community at large and can be fairly universal. Likewise, product education is going to be specific to groups of users. Segmented targeting is required but probably not a high degree of personalization. On the other side of the spectrum, cross-sell and upsell communications require more relevance as they address customers in their specific lifecycle stage and product usage.