The Shift from Mass Advertising to Personalized Communication
In the past, advertising an offer was almost an act of faith. Local stores relied on local newspapers or a few precious seconds on the radio to make themselves heard. Large chains could reach television, but for most, the budget barely covered a spot on the city’s AM station. The goal was clear: attract people to the store. However, the issue was that everyone received the same message, regardless of whether they were loyal customers or mere curiosity passersby.
The Role of Coupons in Traditional Advertising
One of the star tools of that time were coupons. They arrived in newspapers or overflowing flyer boxes. For the customer, the task was almost handcrafted: searching through pages, cutting with scissors, and carrying the coupon to the store before it expired. For the store, the challenge was not lesser: accepting coupons implied training staff to redeem them, correctly register them, and then account for those discounts in their income. It was a slow process, prone to errors, and most importantly, costly.
Moreover, these mass strategies lacked precision. Thousands of pesos could be spent on printing and distribution without knowing if the message reached those who were truly interested. In that world, reaction time was long: this month’s campaign was planned weeks in advance, and if the results were poor, one had to wait for the next cycle to correct.
Signage in Physical Stores
In physical stores, signage was another pillar of communication. Large chains could have an in-house signwriter dedicated to printing posters, designing signs, and keeping promotions up-to-date in the aisles. It was a manual, visible, and costly job but crucial to guide the customer once inside.
Radio and television remained the only ways to reach mass audiences at home. They were powerful media, but expensive and with a weakness: the difficulty of measuring their real impact. One knew how many people could see or hear the ad, but not how many actually visited the store or bought the product.
The Current Landscape: Hyperpersonalization
Fast forward to today, and the landscape is unrecognizable. Customers expect communication to reach their fingertips—literally—and most importantly, be tailored to them. It’s no longer about broadcasting a generic message but constructing personalized, even hyperpersonalized experiences. Technology allows knowing what products a customer buys, how often, and at what time of day they’re most likely to acquire them. The customer, in turn, not only tolerates but demands this personalization.
Loyalty Platforms Driving Change
Loyalty platforms have been a significant driver of this change. A good program not only rewards the customer but also becomes a direct communication channel. From there, exclusive offers, reminders, and recommendations that truly resonate with each user’s profile and history can be sent.
The Rise of Social Media
The social media boom has transformed communication into a two-way conversation. No longer is it the brand speaking from a podium; now, the customer responds, shares, criticizes, and recommends in real-time. Companies that have understood this shift don’t just post; they listen and act.
Retailers’ Marketing Budget Reallocation
In this context, large retail chains have redirected their marketing budgets. Spending previously allocated to printing, physical signage, or massive radio and TV ads now flows into digital marketing: search ads, segmented campaigns on social networks, email marketing, and push notifications in mobile apps. It’s measurable, adjustable, with near-instantaneous results.
Retail Media: Bridging Physical and Digital Worlds
Inside stores, evolution has taken shape in what’s now known as retail media: the use of digital screens, smart signage, and personalized ads at the point of sale. It’s no longer just about putting up a “daily offer” sign but displaying real-time, different promotions based on the time, weather, or even the customer profile passing by. It’s a perfect fusion of the physical and digital worlds.
Future Trends: More Immersive Experiences
The inevitable question is: where will customer communication evolve in the next 5 to 10 years? The trend points towards increasingly immersive experiences, possibly with augmented reality in-store, virtual assistants accompanying purchases, and algorithms anticipating needs before the customer expresses them. Perhaps the real revolution isn’t sending more messages but knowing which ones to avoid, respecting the customer’s attention.
What’s clear is that in the race to connect with customers, technology will continue moving the goal post. As always, brands that win will be those that successfully combine data, creativity, and empathy to ensure every message across any channel feels personal.
Key Questions and Answers
- Q: How has advertising evolved from mass methods to personalization? A: Advertising has shifted from generic mass methods to hyperpersonalization, leveraging technology to understand individual customer preferences and behaviors.
- Q: What role do loyalty platforms play in this change? A: Loyalty platforms have become direct communication channels, enabling businesses to send tailored offers, reminders, and recommendations based on individual customer profiles.
- Q: How have social media impacted customer communication? A: Social media has transformed one-way brand messaging into two-way conversations, allowing real-time customer engagement and feedback.
- Q: How have retailers adapted their marketing strategies? A: Retailers have redirected their budgets from traditional methods like printing and signage to digital marketing channels such as search ads, social media campaigns, email marketing, and mobile app push notifications.
- Q: What is retail media and how does it benefit stores? A: Retail media refers to the use of digital screens, smart signage, and personalized ads at the point of sale, creating a seamless blend of physical and digital shopping experiences.
- Q: What future trends can we expect in customer communication? A: Future trends lean towards more immersive experiences, possibly incorporating augmented reality, virtual assistants, and predictive algorithms to anticipate customer needs.
