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<Img
img="/uploads/in_app_advertising_11eaa1e5bc.png"
alt="In-App Advertising: What’s It, How It Works & How to Do It"
/>

In 2023, worldwide [**app downloads**](https://www.statista.com/statistics/271644/worldwide-free-and-paid-mobile-app-store-downloads/) reached 257 billion, with users spending [**over 16 billion hours**](https://www.statista.com/statistics/1446684/cumulative-time-spent-on-apps/) in them last year. In 2024, these figures continue to grow.

App marketing is one of the most promising online promotion strategies. Advertising within mobile apps can serve as an additional tool for marketing communication with both external and internal audiences. This approach is called In-App advertising and is utilized by various online businesses.

This article will delve into the types, complexities, and creation of such advertisements.

## What is in-app advertising

In-app advertising refers to ads within [**mobile applications**](https://altcraft.com/blog/mobile-app-as-a-marketing-channel), appearing either before loading or within the interface. The format resembles website banners that appear at specific times or persistently on the page while the user browses content. However, mobile advertising is more intrusive: users often cannot immediately access the app's functionality and must first view the ad or close it with a special button. This is reminiscent of pre-roll ads before videos.

In-app traffic is chosen for advertising gaming app services, platforms, and other online businesses. Ads are typically shown in free or trial versions of applications, and the option to disable them may be used as an incentive to pay for premium access.

Brands' own advertisements within apps are also considered in-app advertising. In this case, users are not directed to an external website but are kept within the company's app or redirected to its own web page.

### How does in-app advertising work

In-app advertising is managed by Demand-Side Platforms (DSPs) — intermediaries between app owners and advertisers that aggregate different ad networks. They handle the purchase of ad space. Companies come to DSP platforms to order mobile advertising placements. The cost depends on the current bid, which is determined by auction principles. 

There are also Supply-Side Platforms (SSPs), where advertising can be tailored to a specific [**target audience**](https://altcraft.com/glossary/target-audience-why-to-define-it-how-to-classify-and-segment-it).

### How is in-app advertising paid for

There are several pricing models:

**CPC** — Cost Per Click: Payment for each click. A beneficial model where the advertiser only spends the budget when users are genuinely interested in the ad. However, accidental clicks also incur charges.

**CPM** — Cost Per Mille: Payment for 1000 ad impressions. It's inexpensive but not the most reliable model because there is no guarantee of returns.

**CPA** — Cost Per Action: The cost deducted from the advertiser for a specific action (conversion, subscription, download, etc.).

**CPI** — Cost Per Install: Payment for the installation of the advertised application.

### Advantages of in-app advertising

In-app marketing is a promising avenue for promoting products. Advertising on mobile devices offers the following benefits:

- Simplified moderation and ad creation compared to ad managers on social networks and specialized platforms. 

- A vast audience that accesses applications daily and potentially can become your customers. 

- Opportunity to diversify ad creatives. In-app ads can be dynamic, such as in the form of mini-games. 

- Visibility of ads, from which users cannot escape.

## Distinguishing in-app advertising from push notifications

[**Push notifications**](https://altcraft.com/blog/mobile-marketing-101-push-notifications) are also utilized for advertising through mobile applications, but there are differences compared to in-app advertising.

<Table>
| | Push | In-app |
| ------ | ------ | ------ |
| Appearance | A small pop-up message at the top of your smartphone screen. You can view the full message by clicking. | Banner (image, picture with button and other variants) in the application interface. |
| Location | Appears outside the application. | Only works within the application at startup. |
| Purpose | Promotes in-app activities: returns to purchases, incomplete actions, and so on. Does not promote third-party products, but only those that can be purchased in the app. | It also advertises third-party services and products (if it's paid ads from other brands in the app). But own in-app, as well as push messages, motivate to actions inside the app. For example, they offer to take part in a promotion. |
| Personalization | High level because push notifications are often sent to a specific user based on their actions. | For third-party ads, personalization is weak because external advertisers don't get all the information about the audience. Internal in-app ads from app owners can work on a Push basis and personalize offers. |
</Table>

## Types of in-app notifications

Let's explore options for advertising within other applications and internal in-app messages.

**Banners with a** [**CTA**](https://altcraft.com/blog/what-is-cta) triggered by clicking on the image. They occupy either the entire screen or a portion of it. Typically, they remain visible until the user takes action: clicking on the image or closing it via the cross or a dedicated button.

<Img
img="/uploads/banner_with_cta_b59d531b8b.png"
alt="Banner with CTA"
/>

**Video ads** are clips that cover the interface, and users cannot scroll past them until they have watched them entirely or for a set amount of time.

<Img
img="/uploads/video_ads_bf8739b9b8.png"
alt="Video ads"
/>

**An interactive format that resembles a game.** The user is offered to control a hero, solve a problem, spin a wheel for a drawing, take a test and so on.

<Img
img="/uploads/in_app_ads_with_gamification_916753c138.png"
alt="In app ads with gamification"
/>

By the type of user interaction, in-app notifications can be:

- **Welcome and guidance notifications.** Often used for onboarding purposes to help users understand how everything works. 

- **Rewards** for returning or for completing a specific level.

<Img
img="/uploads/reward_ad_c4a74fa12f.png"
alt="Reward ad"
/>

- **Announcement notifications:** informing about updates, new features, or failures. 

- [**Personalized**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) **notifications** offering discounts and promotions. 

- **Feedback request**: a request to rate a product or service.

<Img
img="/uploads/feedback_request_21ae493b47.png"
alt="Feedback request"
/>

According to the location in the application distinguish such in app messages:
- A banner on part of the smartphone screen.

<Img
img="/uploads/banner_on_part_of_screen_e7035dcb39.png"
alt="Banner on part of screen"
/>

- A banner that closes the entire interface. 

- Embedded ads in the app's shared feed.

<Img
img="/uploads/embedded_ads_in_the_app_48580b07c3.png"
alt="Embedded ads in the app's shared feed"
/>

## What can be the difficulties with in app advertising

In-app advertising is a non-universal format and is not suitable for everyone. Along with significant pluses, there are disadvantages.

For in app ads within your app:

**Deterioration of the user experience.** Pop-up messages can annoy the user, especially if they are intrusive and it is not obvious how to close them quickly.

[**Banner blindness.**](https://altcraft.com/glossary/banner-blindness-its-causes-and-how-to-deal-with-it) In-app ads are more noticeable than on-screen ads, where ads are plentiful. But even here it is possible that the user will close the message out of habit if it does not attract attention. Similarly, your ads will get lost in the interface.

For in app advertising in third party apps:

- **Lack of quality audiences and lack of personalization.** Ads can go to waste because there are no detailed targeting settings. 

- **Cost.** Because of the work on the principle of auction at high demand prices for displays (or other method you have chosen) will become higher and not the fact that will pay off. Especially if they show the wrong audience. 

- **Risk of fraud.** Due to unscrupulous intermediaries, the sphere of In app advertising is discredited. There are cases of account theft, false clicks to get more payment from the advertiser, and even use special software that imitates targeted actions.

## How to make in-app ads work

Before launching an in-app campaign within your app or buying third-party ads is important:

- **Define goals** — how many conversions, new users or subscribers you expect. 

- **Describe the target audience** to whom you will show ads. If possible, segment to understand exactly which offer to broadcast to each group. 

- **Prepare creatives**. Here it is worth to show originality and go beyond the boundaries of the standard banner to capture the attention of the user. If there are resources and the opportunity to make an interactive format, gamification, try to realize it. The message in advertising should be short and clear, because it is unlikely that the user will spend time to study the content that he did not expect to see. Especially if he went to the app with a specific purpose. 

- **Check the view of your creatives on the screen**: whether the picture is displayed correctly, whether the buttons work and where they lead. 

- **Test different variants and draw conclusions** (A/B and other hypothesis testing options).

What a proper in-app marketing campaign for your own app should include:

**A personalized approach.** The more precisely you hit the customer's need with your message, the more chances you have of getting the reaction you want. Personalization is possible when a company collects and processes user data correctly, for example, with [**a CDP marketing automation platform**](https://altcraft.com/en/).

Don't forget geotargeting either: offer relevant offers nearby.

**Thoughtful timing of ads.** You don't want to distract people with a notification when they are already placing an order. Telling about new individual discounts when opening the application is a more effective option.

**Moderation in the number of messages.** Messages that appear on the screen too often will only cause irritation, not a desire to continue communication with the brand. They will also only increase the user's "banner blindness".

## Summary

In-app advertising comprises promotional messages inside mobile applications: both from the app's owners and third parties, which appear on the screen and prevent users from continuing their actions until closed.

This method of marketing targets a broad audience, often utilizing creative formats such as interactivity, gamification, and others. In-app messages differ from push notifications in that users only see them while using the application, whereas push notifications appear even when the app is running in the background. However, both types of messages aim to encourage users to take specific actions, such as making a purchase, downloading content, subscribing, and more.

Within proprietary applications, in-app advertising is also employed for onboarding, informing about updates, and soliciting feedback. The main types of in-app advertisements include banners, videos, and various interactive formats like mini-games, quizzes, and others.

To create effective in-app advertising, it's crucial to define goals, design creative content, consider timing and frequency of displays.

In-app advertising involves promotional messages displayed within mobile applications, originating from both the app developers and external parties.

medium_in-app-advertising.png

small_in-app-advertising.png

thumbnail_in-app-advertising.png

in-app-advertising.png

About what App advertising is and types, complexity and creation of ads.

In-App Advertising: What’s It, How It Works & How to Do It

In-App Advertising: What It Is, How It Works, and How to Do It

<Img
img="/uploads/repeat_purchases_c6ac8d5fdb.png"
alt="Encouraging Repeat Purchases: 7 Ways to Retain Customers"
/>

Earning a customer's trust and leading them to make a purchase requires effort and time. Depending on the industry and product prices, convincing a consumer can take several weeks or months. Even in retail, where emotional purchases are common, the first purchase is always the most challenging.


Once you've gained a customer's trust, it's important to continue fostering their interest. Encourage repeat purchases to increase revenue and reduce marketing and advertising expenses. In this article, we'll discuss why repeat purchases are important and share seven strategies for strengthening [**customer loyalty**](https://altcraft.com/blog/customer-loyalty).

## What are repeat purchases and why they are important

**Repeat purchases** are the process whereby a customer regularly buys your company's products. This results in an ideal situation: you build customer loyalty, and they trust your brand enough to consistently spend money on your goods or services.

**Loyal customers** are highly valuable in business. They enhance profit flow, increase ROI, and help gather valuable data about [**the target audience**](https://altcraft.com/glossary/target-audience-why-to-define-it-how-to-classify-and-segment-it). Additionally, loyal customers bring other benefits:

- **Brand advocacy:** Consumers who regularly purchase products and services serve as a source of free advertising through positive reviews and word-of-mouth recommendations. They share information about the brand with friends, family, and social media followers, thereby expanding your audience. Such customers often provide feedback, explaining what can be improved and how. 

- **Boost pre-holiday sales:** During holidays, new buyers come to brands. However, loyal customers also ensure a flow of profit, as you offer them special discounts. Furthermore, loyal customers respond well to pre-holiday marketing campaigns, maximizing profit during periods of increased demand. 

- **Willingness to try new offers:** Loyal customers are an excellent audience for launching new products. They are willing to test new offers and repurchase items if they involve products they like.

Your target audience already loves and values your brand and offerings. You don't need complex [**sales funnels**](https://altcraft.com/glossary/sales-funnel-what-it-is-its-types) or viral content to capture their attention.

## 7 Simple strategies to strengthen ongoing customer relationships

To win over loyal customers, it's essential to develop relationships with consumers and build their trust. Let's consider several simple strategies that contribute to regular purchases.

### 1. Launch a customer loyalty program

[**Creating a customer loyalty program**](https://altcraft.com/blog/customer-loyalty-program) is an excellent way to encourage repeat purchases. Such programs increase the average order value.

You can structure a loyalty program in various ways, with different levels of complexity, but a simple and understandable program is also quite effective.

To begin, gather your customers' contact information, assign each a unique number or card, and reward them upon reaching a certain number of purchases or a specific spending threshold.

**Ideas for incentivizing loyal customers include:**

- Special offers exclusively for loyalty program members. 

- Unique conditions for referral programs for those who bring customers to your business. 

- Bonus points. 

- Raffles for prizes among loyalty program participants. 

- When launching new products, send notifications about sales and interesting brand events. However, ensure that loyalty program members are the first to know about everything.

<Img
img="/uploads/bonus_accrual_5b856eb846.png"
alt="Bonus accrual"
src="Email notification of bonus accrual"
/>

### 2. Offer personalized customer service

Unfortunately, many consumers have grown accustomed to impersonal service. They enter a large store and go unnoticed, even if they have been there many times and spent significant amounts.

To stand out among other brands and encourage repeat purchases, serve your customers using an individualized approach. Well-executed service takes various forms depending on the business and industry. For example, restaurants can use their POS systems to gather information about customers and then apply it for [**personalized**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) menu recommendations. Retail stores should welcome shoppers and encourage them to join loyalty programs.

Targeted email advertising campaigns are also a good way to personalize service. Thanks to segmentation tools, you can send emails that cater to the interests and needs of each customer group.

<Img
img="/uploads/personalized_email_947c6e40a8.png"
alt="Personalized email"
src="Example of a personalized email"
/>

### 3. Provide coupons for future purchases

Coupons for future purchases are an excellent tool to incentivize repeat buying. Customers are successfully engaged and retained because they have a reason to return to you.

For example, offer a 10% discount coupon for the next purchase for every $50 spent in your store. Such an incentive gives customers a reason for another purchase, especially if their first encounter with your brand left a positive impression.

<Note>
Important! Launch promo codes that customers can use when placing online orders. This kind of reward motivates customers to maximize their discount on larger purchases.
</Note>

<Img
img="/uploads/coupon_from_the_store_c4ab347596.png"
alt="Time-limited coupon"
src="Time-limited coupon from the store"
/>

### 4. Collect customer contact information

When a customer enters your store or visits your website, it's important to gather their contact information. When you have their name, phone number, email address, and physical address, you gain numerous opportunities for communication and building relationships with the individual.

For example, when customers subscribe to an email newsletter, they give permission to receive news, information about sales and discounts, announcements of new products, and other mailings.

<Img
img="/uploads/blog_subscription_form_8f90fd25b2.png"
alt="Blog subscription form on The Blonde Abroad website"
src="Blog subscription form on The Blonde Abroad website"
/>

### 5. Offer free gifts to customers

The key to stimulating repeat purchases is to stay visible to your customers. It's essential for them to remember you after leaving the store or website. Offering free branded merchandise is an excellent way to stay top of mind.

Distributing branded merchandise (such as pens, calendars, plush toys, and other small branded gifts) to selected customers shows that you value them and makes them feel special.

<Img
img="/uploads/altcraft_merch_883bf6d2c3.png"
alt="Altcraft's Merch"
src="Altcraft's Merch"
/>

### 6. Gather feedback

By providing the opportunity for feedback, you demonstrate to the customer the importance of their opinion. They feel listened to, and not just like another customer.

You can [**collect reviews**](https://altcraft.com/blog/how-to-use-customer-feedback-to-increase-sales) through surveys via email, text messages, online chat, and social media. The results provide valuable insights and help you improve your offerings.

Regular feedback from customers is extremely important. Gather various opinions and be sure to express gratitude, especially if constructive criticism is present.

<Img
img="/uploads/evaluate_the_purchase_3fa7894866.png"
alt="Evaluate the purchase by Adidas"
src="Adidas encourages to evaluate the purchase"
/>

### 7. Actively manage your brand's social media accounts

[**Social media marketing**](https://altcraft.com/glossary/smm-what-it-is-and-why-businesses-need-it) is crucial for shaping your brand's image. It constantly reminds customers about your company and gives them the feeling that they know you personally.

Creative, engaging posts on social media also provide existing customers with material to reference when recommending you to others.

<Note>
Important! Use video content on social media to show customers what goes on behind the scenes of your brand.
</Note>

<Img
img="/uploads/adidas_page_on_social_networks_ccbe18c06e.png"
alt="Adidas on social networks"
src="Adidas company page on social networks"
/>

## Services for implementing repeat sales

Collecting customer data is a key element in increasing repeat sales. Understanding the target audience helps filter out ineffective leads.

Let's consider several main services for developing repeat sales and building strong customer relationships.

### CRM systems

[**CRM systems**](https://altcraft.com/glossary/what-is-a-crm-system) provide functionality for organizing data, planning strategies, and servicing customers. Information gathered in CRM helps segment contacts and send personalized messages.

CRM personalizes all communication with customers and sends targeted offers at the right time, thereby increasing sales and encouraging repeat purchases.

### Email marketing services

[**Email marketing services**](https://altcraft.com/) optimize communication with customers and send targeted information to specific audiences. These platforms offer various features that contribute to building relationships with customers, strengthening trust, increasing sales, website traffic, and much more.

Additionally, these services provide customizable templates, A/B testing, ready-made landing pages, campaign management, and automation features, lead generation options, advanced reporting and analytics tools for planning future campaigns.

**Moreover, email marketing services help:**

- personalize messages;
- increase customer loyalty and engagement;
- strengthen brand awareness;
- retain customers;
- automate tasks.

<Note>
Important! According to [**Litmus**](https://www.litmus.com/resources/email-marketing-roi/), every dollar invested in email marketing can generate up to $36, creating an excellent ROI indicator.
</Note>

<Img
img="/uploads/campaign_setup_eadd0dfa17.png"
alt="Campaign setup"
src="Campaign setup on Altcraft Platform"
/>

### SMS marketing services

[**SMS marketing**](https://altcraft.com/blog/sms-marketing) is an effective way to communicate with your customers and a tool to increase sales. SMS marketing services send messages on schedule without unpleasant surprises, while complying with laws. Thanks to them, personalized messages are easily automated, and quick communication with the target audience occurs.

SMS marketing cuts through the information noise effectively and brings fast results. Engage with customers by sending timely updates, personalized product recommendations, and more.

## Encourage customers to return to you again and again

According to the book "Leading on the Edge of Chaos" by Emmett C. Murphy and Mark A. Murphy, increasing customer retention by 2% affects a company's profit and reduces expenses by 10%. By retaining just two percent of your customer base, you reduce significant business costs.

Moreover, the more often a customer returns and has a positive purchasing experience with you, the more likely they are to recommend the brand to their friends.

To ensure repeat sales, it's important to understand that you're taking the right steps to engage customers and meet their needs. Planned strategies are an excellent starting point.

Source: [**Business**](https://www.business.com/articles/5-ways-to-earn-repeat-business/#what-is-repeat-business-and-why-is-it-important)

Learn how to keep customers coming back with these seven effective strategies for fostering loyalty and encouraging repeat purchases.

medium_repeat-purchases.png

small_repeat-purchases.png

thumbnail_repeat-purchases.png

repeat-purchases.png

About what repeat purchases are and why they are important. Let's share seven strategies to strengthen customer loyalty.

Repeat Purchases: 7 Ways to Retain Customers

<Img
img="/uploads/nsm_c2db2f9d25.png"
alt="North Star Metric: Definition, How to Find It, and Examples"
/>

Moving forward without a clear and measurable goal is a risky strategy for any business. Therefore, goals are set and translated into numerical indicators by which the success or failure of a company is evaluated. However, the primary metric is not always the revenue generated by the business.

Top digital companies choose North Star Metric as their guiding light, which translates to the "north star metric." This indicator determines whether the business has chosen the right development strategy.

Let's explore further what NSM is all about, why you need a "north star," and how to find it not in the starry sky, but among your goals and objectives.

## What is North Star Metric and why is it needed

**The North Star Metric** is the primary indicator that characterizes the value of a company's product to its users. And this metric is not always measured in terms of money. The essence of the North Star is to control the increase in value for customers, which enhances the business's sustainability. And a large flow of money that people pay does not always guarantee that the company is stable and will continue to grow further.

**The NSM metric is tracked to:**

- Maintain the right direction in the company's work and understand common goals for all departments. 

- Prioritize employees' tasks to efficiently achieve goals. 

- Identify weaknesses and new development options. 

- Maintain openness in team work and transparency of results.

<Note>
Do not confuse North Star with OMTM — one metric that matters. These metrics are similar but differ in scale and tracking time.
</Note>

NSM is important for the entire company over a long period of time, while OMTM is a local indicator for individual business units. Such a metric is calculated over several months (from three to six).

## NSM Variants 

The uniqueness of the North Star lies in the absence of a single benchmark for everyone. A metric that best reflects the tasks and type of business is chosen as the "pole star." [**An online marketplace**](https://altcraft.com/glossary/e-commerce-types-examples) and a media platform should not determine success or failure in the same way.

For a marketplace, revenue or the number of orders would be more suitable as an NSM metric. For an online magazine, it's better to choose as the "pole star," for example, completion rate of articles published through various marketing channels.

<Table>
| **Metrics** | **Description** |
| ------ | ------ |
| LTV | The customer lifetime value indicator refers to how much money the customer has paid for the company's product over the entire time of use. |
| CAC | Сustomer acquisition cost |
| ARR | Annual recurring revenue |
| MRR | Monthly recurring revenue |
| GMV | Gross merchandise value |
| MAU | Monthly active users |
| WAU | Weekly active users |
| DAU | Daily active users |
| NPS | Net promoter score |
| Retention Rate | Customer retention. For NSM, retention is counted for different periods depending on the specifics of the business. |
| New users | New user registrations or application installations |
| Viewing time | Reading articles, watching video content to the end. |
</Table>

## Is it possible to change the North Star over time?

Yes, the "north star" should correspond to the company's level of development. The benchmark for a small startup may not always be suitable for a larger, more mature company. Therefore, as goals change and the company grows, the NSM also changes.

For example, the social network Facebook* used the metric MAU. After the appearance of competitors and changes in the digital market, it made the number of users who log in and show activity every day the main indicator.
 
### Can you choose more than one North Star

In the sky, there is only one north star, but in the earthly business, several NSMs are allowed. However, this option is suitable only for developed large companies with a complex structure and product. In this case, even individual departments set their own benchmarks.

It is important that the existing metrics do not contradict each other. Do not choose more than three North Stars. Otherwise, it will be difficult to maintain the correct focus.

## How to Find the "North Star" 

**Step 1.** Identify the action taken while using the product, where the customer solves their problem/task or satisfies a need.

*For example, in an English language learning app, the moment of satisfaction would be successfully completing a lesson.*

**Step 2.** Determine how the value of the product can be measured. *In the example of the app, this could be returning to lessons. If the user finds it interesting and useful, they repeat the experience.*

**Step 3.** Translate the value into a specific metric and limit the time over which it will be measured (per day, month, or year).

*Using lesson quality ratings in the app is not always correct for measuring the success of the product because the user may give a high rating but not return. It is better to measure NSM as the number of returns to lessons, for example, through the Retention Rate metric.*

**Step 4.** Relate the assumed North Star (for example, Retention Rate) to other business metrics. All these metrics should ultimately influence the increase in NSM.

At this stage, we check the chosen "north star" for realism. The ideal metric reflects business growth and is influenced by specific employee actions with their KPIs. If there is no such connection, the North Star is likely incorrect.

*Example: Suppose the NSM in the English language learning app were the number of new users. Suppose this figure were to increase, but at the same time, there were fewer subscription renewals and returns to the app, which would ultimately be harmful to the business. Therefore, the North Star in the form of the Retention Rate is a more reliable indicator because returning to the app encourages subscription renewals. And regular lesson continuation means that users like their content (team engagement actions work).*

## Examples of NSM in large companies

NSM is often used in startup operations, but even top multimillion-dollar companies with their IT products and services continue to track the north star metric. Let's look at some examples from well-known brands.

### Spotify

The music service considers listening time as its NSM. Such a metric is unique for similar platforms where only audio content is available.

<Img
img="/uploads/spotify_nsm_de2a6bcdee.png"
alt="Spotify"
/>

### WhatsApp*

The world's most popular messaging app measures its success by the number of messages sent by users. The metric reflects utility through the frequency of application usage for communication.

<Img
img="/uploads/whatsapp_nsm_9a61c99b35.png"
alt="WhatsApp"
/>

### Zoom

The North Star metric for the service is the number of daily online meetings. This assesses how often people actually use the service. This method of evaluating the platform's importance to users is much more effective than measuring, for example, the number of registrations at a given time.
 
### Duolingo

The language learning app has identified its NSM as the DAU (daily active users), indicating the level of engagement. Duolingo studied user behavior and found that the frequency of app usage correlates with continuing education. The more often a user logs in, the higher their motivation to continue lessons. As a result, the number of users with paid subscriptions continues to grow. 

<Img
img="/uploads/duolingo_nsm_d1384f68e7.png"
alt="Duolingo"
/>

### Pinterest 

The company has chosen WAU (weekly active users) as its "north star." This is rational compared to, for example, DAU, which counts the daily flow of users. Pictures for ideas and inspiration (the purpose for which users often visit Pinterest) are not a product needed every day.

<Img
img="/uploads/pinterest_nsm_c1ef546028.png"
alt="Pinterest"
/>

### Miro

The creators of the service assess the usefulness of their product through the number of boards available for simultaneous collaboration by multiple users (usually a feature for team work). This metric reflects how convenient it is to use the tool within a company and also indicates how to improve the product and what strategy to choose next.

<Img
img="/uploads/miro_nsm_c564c95252.png"
alt="Miro"
/>

### Yandex.Taxi

The North Star Metric for the taxi booking service is LTV (Lifetime Value), which denotes the amount earned by the company from a customer over the entire period of their activity. Yandex also considers this metric in the context of other brand services: Yandex.Food delivery and Yandex.Store. Within the ecosystem, all services are interdependent. 

### Edadeal

The NSM (North Star Metric) for the service is the number of active users per day or DAU (Daily Active Users), but with the addition of being "composite." This means that even short sessions and returning users are counted. The second key metric for the service is LTV.

### LinkedIn

The professional networking platform evaluates its effectiveness based on MAU (Monthly Active Users) — users who demonstrate activity within a month. Through this metric, the needs and problems of users are studied: what prevents them from using the platform more often, and what motivates them to return.

<Img
img="/uploads/linkedin_nsm_545f67327b.png"
alt="LinkedIn"
/>

## Summary

The North Star Metric is a key indicator that reflects the effectiveness of a company's operations and forecasts growth prospects. It serves as the primary guide for team efforts.

However, different metrics can serve as NSMs, and there is no universally applicable standard. 

These metrics include financial indicators (LTV, CAC, ARR, MRR, GMV, etc.), engagement metrics (DAU, WAU, MAU), as well as NPS, the number of new users, content completion rates, and others. Finding the "North Star" requires defining the product's value and determining how to track it in a numerical indicator. Additionally, it's important for the North Star to align with the goals and objectives of all company departments.

*
*Products of Meta, a company recognized as an extremist organization in Russia.*

The North Star Metric is a pivotal measure of a company's efficiency and growth potential, guiding the team's efforts.

medium_nsm.png

small_nsm.png

thumbnail_nsm.png

nsm.png

About what NSM is, what is the essence, why you need a "polar star", how to find it not in the starry sky, but among your goals and objectives.

North Star Metric: Definition, How to Find It, and Examples

North Star Metric: What It Is, How to Find It, and Examples From Major Companies

<Img
img="/uploads/digital_services_ecosystem_0ea4fb8488.png"
alt="How Uzum Reduced Push Notification"
/>

**Uzum** is a digital services ecosystem, offering e-commerce, fintech, and banking services to both individuals and small and medium-sized businesses. Over 10 million people in Uzbekistan use Uzum's products every month. Notably, the company achieved the status of the first tech unicorn in Uzbekistan.

The company has been automating marketing communications through Altcraft Platform since December 2022. This article explores the results achieved during their year-long collaboration.

## Why Uzum chose Altcraft Platform

Uzum selected the platform based on the following criteria:

1. **On-Premise Deployment.** Uzum's ecosystem includes a marketplace, express delivery, traditional and digital banking, a BNPL (buy now, pay later) service, a car buying platform, and an entrepreneur app. Strict Uzbekistani data storage and security laws require the company to maintain full control over information. Altcraft, as one of the few platforms offering on-premise deployment, minimizes the risk of leakage by granting Uzum complete control over data.

2. **Flexible Segmentation.** Altcraft allows for detailed audience segmentation based on various factors like profile data, location, website activity, and others. This flexibility enables Uzum to tailor communication for different user groups.

3. **A/B Testing.** With this feature, Uzum systematically optimizes its marketing strategies by determining the best methods of interacting with customers.

4. [**Marketing Automation**](https://altcraft.com/blog/what-is-marketing-automation-and-how-it-affects-business-development) **and Loyalty Programs**. Altcraft Platform provides solutions for automating regular campaigns and creating communication chains. Additionally, you can generate various promo codes to increase customer loyalty and strengthen your relationships with them.

5. **Control of the Number of Communications per User.** Uzum automates customer communications, simplifying the interaction process. This also prevents information overload for the user, providing a more comfortable experience.

6. **Flexible User Subscription Management.** The platform combines data into a single customer profile. Comprehensive information about subscribers helps tailor messages to the preferences and interests of each buyer.

7. **Message Scripts in Templates for Campaign** [**Personalization**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters). The ability to use logical functions in templates ensures a high level of customer engagement, as you can add or remove necessary blocks for a specific audience.

Altcraft Platform not only meets high security requirements, but also effectively improves Uzum's marketing practices, which saves time and increases the efficiency of customer communications.

## Results Achieved

### Started Saving 20 Working Hours per Week


Uzum uses Push, SMS, loyalty programs, and market. By automating regular campaigns, they were able to save **more than 20 working hours per week** that were previously spent on creating these mailings.

<Img
img="/uploads/started_saving_working_hours_per_week_fcf708e8ee.png"
alt="By automating campaigns, they were able to save more than 20 working hours per week"
/>

### Reduced Time to Market for Ad-Hoc Campaigns by 3 Times

In a year of collaboration, Uzum was able to **reduce the time to market for ad-hoc campaigns by 3 times.** This was achieved through the use of a convenient segmentation system based on key profile data and the ability to launch customer communications in multiple languages.

**Previously, various tasks had to be performed manually:**

- Creating separate templates for specific users; 

- Dividing each segment into files; 

- Selecting the template language based on the list.
 
**Now:**

- Multiple templates have been created in different languages; 

- Content in the required language is automatically substituted based on profile data; 

- The audience is also automatically selected each time the campaign is launched.

<Img
img="/uploads/reduced_time_to_market_d5314c9e66.png"
alt="Reduced Time to Market for Ad-Hoc Campaigns by 3 Times"
/>

### Increased OR by 2.3 Times

Regular newsletters have become an important part of Uzum's marketing strategy. This has led to **a 2.3-fold increase in message opens** compared to previous approaches. This result underscores the effectiveness of the flexible segmentation system for more precise communication and adaptation to the interests of different user groups.

<Img
img="/uploads/increase_in_message_opens_4c3c594594.png"
alt="Increased OR by 2.3 Times"
/>

### Reduced Push Notification Opt-Out Rates by 23%

Successful segmentation reduced the push notification opt-out rates by 23%. This proves that customers respond more positively to personalized and relevant messages, and it speaks to the importance of A/B testing. This is how Uzum continuously optimizes content and communication channels.

<Img
img="/uploads/reduced_the_push_notification_5bd143c5b8.png"
alt="Reduced Push Notification"
/>

## Future Plans

Uzum plans to:

- Fully automate product recommendations based on user behavior; 

- Set up cascading communications; 

- Automate remarketing for users who do not receive messages or place orders.

## Conclusions

Altcraft Platform has fully met Uzum's expectations, as its use takes into account the requirements for data security and the flexibility of the segmentation system.

Uzum effectively uses Altcraft tools to optimize communication and customer experience management processes, which include Push, SMS, loyalty, and market. Full automation of product recommendations is on the agenda, along with continued improvement of user interactions.

These successes confirm the effectiveness of Altcraft Platform and Uzum's readiness for continuous improvement of marketing strategies for more successful interaction with the audience and business development in general.

How the digital services ecosystem Uzum reduced the bounce rate of push notifications and saved 20 working hours per week using Altcraft Platform.

medium_digital-services-ecosystem.png

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thumbnail_digital-services-ecosystem.png

digital-services-ecosystem.png

Read how the Uzum reduced the bounce rate of push notifications and saved 20 working hours per week.

Uzum: How to Reduced Push Notification and Saving 20 Working Hours

How Uzum Reduced Push Notification Opt-Out Rates by 23% and Started Saving 20 Working Hours per Week

<Img
img="/uploads/mvp_what_it_is_084731d36c.png"
alt="MVP: What’s It, Why Needed, Its Types, Stages & Examples"
/>

Developing a new product entails resource costs: money and time. However, it's impossible to predict with 100% certainty whether an idea will be successful. Going all-in and implementing all planned features at once carries the risk of significant losses. If the product doesn't become popular or isn't needed by anyone, the business will have wasted money.

To test hypotheses relatively economically, the MVP (Minimum Viable Product) method was devised. In this approach, the idea is implemented but not fully. The client receives basic functionality and evaluates it, while the creator makes decisions about further product development based on feedback.

In this article, we'll delve into what an MVP version is, why it's needed, and how it's created.

## What is MVP and why it’s needed

**MVP (Minimum Viable Product)** is a minimal viable product or version that already has features to meet needs and demonstrate software capabilities to the client.

It is created to test an idea without unnecessary investments, which is why startups often use this approach. However, an MVP product is a universal solution, suitable for large companies launching new projects and aiming to avoid financial losses.

*For example, let's say you decide to start producing small cakes with original inscriptions. The MVP of such a product would be a classic white cake with letters made of special cream. The cake is already tasty and produces the desired effect; the customer can cut a piece, taste it, and evaluate it.*

*Then, the full version would include multiple colors, a more complex shape (e.g., round), 3D letters, and illumination.*

### Why is the MVP model needed

**Checking the viability of the idea.** A real product provides much more information than preliminary market research. [**User feedback**](https://altcraft.com/blog/how-to-use-customer-feedback-to-increase-sales) will show which features are important and what prospects the project has.

**Resource saving.** The MVP, as a minimal product, is a test version that does not require huge investments. Therefore, in case of failure, the losses will not be fatal. Additionally, the MVP prototype will indicate which functionality is not interesting to users, allowing you to avoid investing in the development of these directions.

**Increasing competitiveness and attracting customers.** The longer the development takes, the more likely it is that someone else will launch a similar product. Creating an MVP solidifies the position of the developing company in a certain niche, making it harder for competitors to surpass you.

**Attracting investments.** It is easier to raise funds for a product that already exists than for an idea. Developing an MVP will be a plus for investors and a visual demonstration of the project.

## How MVP differs from PoC

The concepts of MVP (Minimum Viable Product) and Proof of Concept (PoC) are related but distinct.

<Table>
| Type | Description |
| ------ | ------ |
| PoC | Concept development and verification through market analysis, customer interest (for example, by the number of pre-orders) even without the product itself. That is, only a certain promise is demonstrated, a description of the functionality. Experience of other companies and other data is also analyzed. Sometimes MVP version of a product can become one of the stages of Proof of Concept. The method has no clear boundaries, so this variant is possible. |
| Prototype | A software simulation that demonstrates basic features and interface, but it is not full functionality. |
| MVP | Hypothesis testing on a real-world product with the necessary functionality for user evaluation. |
</Table>

## Types of MVP

It is more accurate to distinguish stages of MVP rather than types because the classification depends on the degree of readiness of the test product. It is not always fully functional software.

### Here are the types of MVP

- **Landing page**, where detailed information about the future product and planned features is gathered. Email addresses or other contacts with interested users are collected here. This helps build a customer base, to whom demos and other product testing options can be offered through available communication channels. 

- **Concierge**. While the product does not yet exist, all functions are performed by people. Communication with users occurs not through an interface, but directly (messengers, email, etc.). For example, instead of a hotel booking service, users need to contact a manager. 

- **Product simulation**. In this version, there is a user interface, but the functionality is implemented by the developers themselves, who manually process requests. This means that automation is not yet in place, but users may not be aware of this.

## Stages of Creating an MVP 

- **Goals and objectives.** Determine the problem the user should solve with the future product and the features that will address it. Also, describe the product's value proposition to customers. 

- **Market analysis and** [**target audience.**](https://altcraft.com/glossary/target-audience-why-to-define-it-how-to-classify-and-segment-it) To create a useful MVP application, service, or other software, it's important to know existing alternatives: their advantages and disadvantages that your product will address. Also, identify who the consumers are and what they want. 

- **Functionality planning.** Describe how the MVP product will work, the steps the user will take during usage, and how to make the journey as straightforward as possible. 

- **Development.** Proceed with one of the familiar methodologies in IT. Typically, this is Agile with Scrum and other tools. By this stage, the programming language for the MVP version of the product has been chosen, and the team has been formed. 

- **Product launch and testing error resolution.** This process takes place within the team to present users with a properly functioning product. 

- **Feedback and analytics.** The MVP product is released to users, who use it to solve their tasks and provide feedback. Based on the results, creators analyze the data and draw conclusions about the success of the idea and its prospects. If testing is successful, deficiencies are addressed, and the product is refined to the full version.

## Examples of MVP

### Amazon

The story of one of the world's top online retailers began with an MVP in the 1990s. Amazon's founder, Jeff Bezos, didn't create a full-fledged online store but focused on selling just five products—the best-selling books. This resulted in a simple website that grew into a full-fledged digital platform for commerce. And Bezos became one of the wealthiest people in the world.

<Img
img="/uploads/amazon_first_version_70e3c7a9c4.png"
alt="First version of Amazon"
src="Amazon's first version"
/>

### Uber

In the first version, the service was called Ubercab. The Minimum Viable Product included only the feature of connecting passengers with nearby drivers in real-time. Even then, there was a driver rating system and GPS.

Later, additional features beyond the MVP were introduced. For example, shared rides, messaging, and even food delivery.

<Img
img="/uploads/first_version_of_uber_3fab1e0750.png"
alt="First version of Uber"
src="MVP version of Uber (Ubercab)"
/>

### Duolingo

The MVP version of the app featured a passive-aggressive owl and was free for users. The financial model relied on crowdsourcing: users translated texts, and the best translations were sold.

Later, Duolingo became interactive, offering more lessons, and subscription terms were changed.

<Img
img="/uploads/one_of_the_first_versions_of_the_duolingo_d071085e92.png"
alt="One of the first versions of the Duolingo application"
src="The interface of one of the first versions of the Duolingo application"
/>

### Instagram*

In the first version, the app looked like a simple photo album where users could apply filters. This format turned out to be very popular.

Today, Instagram is a platform with photos, videos, stories, chats, and many other features that have been added since the MVP version.

<Img
img="/uploads/first_version_00328d1670.png"
alt="Instagram*: first version"
src="Instagram*: start"
/>

### Pinterest

The MVP of the service was very simple: users saved ideas (images) by topic and pinned them to boards, sharing them with others. Today, this aspect of Pinterest remains, but features such as search, recommendations feed, and shared boards have been added, and users can also upload videos.

<Img
img="/uploads/pinterest_first_interfaces_bfcd899307.png"
alt="Pinterest first version"
src="Pinterest's first interfaces"
/>

### Zoom

Before its popularity surge during the pandemic, the platform offered limited basic features: video conferencing, recording, and screen sharing. This MVP proved convenient for users, and as revenue grew, the company added new features and improved data security. 
### iPhone

In the first MVP version of the iPhone's software, many familiar features were absent: copy and paste, Bluetooth, image sending, and more. However, the smartphone was revolutionary and changed the market.

Today, there are so many features in the iPhone that people don't always use even half of them.

<Img
img="/uploads/first_ios_397c43d886.png"
alt="That's what the first IOS was"
src="That's what the first IOS was"
/>

## Summary 

A Minimum Viable Product (MVP) is the implementation of an idea (often an IT service or application) with basic features that address the needs of customers. This approach is important for saving money on development, understanding users, and attracting investments. MVP visually demonstrates whether the product is needed by the audience, what its shortcomings are, and whether further investment in its development is worthwhile.

MVP differs from Proof of Concept (typically hypothesis testing without product development) and a prototype (a simulator without full functionality).

To develop an MVP, goals are set, the market and audience are studied, a development team and methodology are selected. After testing and launching the product, feedback is obtained from users themselves, who provide feedback.

*
*Product of Meta, recognized as an extremist organization in Russia.*

MVP stands for Minimum Viable Product. It refers to the initial version of a product that includes only core features essential for addressing customer needs.

medium_mvp-what-it-is.png

small_mvp-what-it-is.png

thumbnail_mvp-what-it-is.png

mvp-what-it-is.png

About what the MVP version is, why it is needed, the stages of creation and examples.

MVP: What’s It, Why Needed, Its Types, Stages & Examples

MVP: What It Is, Types and Stages of Creation

<Img
img="/uploads/customer_segmentation_models_b160eae6f7.png"
alt="4 Customer Segmentation Strategies for Tailoring Content"
/>

An important condition for an effective marketing campaign is to deliver it to the right people at the right time with the right content. Creating a unique message for each potential and existing customer is challenging because their needs and preferences vary. Segmentation comes to the rescue, allowing companies to interact with users through personalized campaigns. The problem is that there is no universal approach to [**audience segmentation**](https://altcraft.com/blog/how-and-why-to-segment-target-audience). You need to find the appropriate model that meets the needs of your business.
In this article, we will discuss the most effective customer segmentation methods and provide tips on how to use them to personalize communication with customers and increase their engagement.

## Why does a business need segmentation models

Customer segmentation is an opportunity to obtain valuable data about customers and tailor campaigns based on this data rather than just dividing people into groups. Why invest in audience segmentation:

### 1. Effective customer interaction

Segmentation models improve understanding of customer interests. By applying them in marketing, you can find effective ways to attract users. When you send relevant messages to your audience, you improve their customer experience, thereby increasing sales. Through segmentation and prioritizing communication, you can tailor each message to maximize its effectiveness.

<Img
img="/uploads/personalized_letter_784f4072f2.png"
alt="Personalized letter from Sephora"
src="Example of a personalized letter from Sephora"
/>

### 2. Increased advertising ROI

If there is only one marketing channel where customer segmentation brings impressive results, it is paid advertising. It is in the company's interest to address ads specifically to potential customers for whom it is relevant.

The main advantage of customer segmentation for advertising campaigns is the ability to focus more attention on groups that are more profitable, while reducing interaction with less profitable audiences.

For example, if an online store plans to promote a new collection of sunglasses, it should focus on user segments living in sunny regions or conduct the campaign during the summer season.

### 3. High email open rates and click-through rates

Understanding what users need and their preferences is the first step to effective segmentation.

With the help of mass mailing services, such as [**Altcraft Platform**](https://altcraft.com/en), you can create detailed contact segments based on specific data and launch personalized email campaigns. As a result, email open rates, click-through rates, conversion rates, and email ROI will quickly and significantly increase.

<Img
img="/uploads/audience_segmentation_in_altcraft_c4253ae960.png"
alt="Audience segmentation in Altcraft"
src="Example of audience segmentation in Altcraft Platform"
/>

### 4. Increased customer loyalty

Retaining existing customers is cheaper than acquiring new ones. By understanding what each segment expects, you can send them [**personalized messages**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) with relevant content. This builds their trust and turns them into loyal customers. Through segmentation, maximum customer retention is achieved, and relationships with them are improved.

## 4 customer segmentation model

So, you're ready to start segmentation. But where to begin? The approach depends on the industry, goals, and customer journey.

### 1. Sociodemographic segmentation

The demographic segmentation model is one of the most popular among marketers. Therefore, it is among the first stages of customer segmentation strategy in any company. Such division groups people based on specific demographic characteristics:
- age
- gender
- education
- occupation
- income
- marital status

<Img
img="/uploads/demographic_segmentation_63e2f3d3e3.png"
alt="Demographic segmentation"
/>

Demographic segmentation is highly effective for brands with a broad audience across various sectors, from e-commerce to media and fitness applications.

Let's consider a successful example from the Adidas Training app, where gender was taken as a segmentation criterion. After the user specifies their gender in the settings, the brand recommends an enhanced version of the service. To attract attention, female athletes are showcased during workouts to make the offer more relevant to the specific group, resulting in higher engagement.

<Img
img="/uploads/gender_segmentation_within_adidas_training_app_e29c081b9d.png"
alt="Example of gender segmentation within Adidas Training app"
/>

For instance, suppose you need to promote a B2B application and its new feature. Then, you need to understand what a user from another company represents and tailor messages to their professional inquiries.

### 2. Segmentation by geolocation

Geolocation segmentation is considered one of the fundamental elements of content personalization, as it divides customers based on their location: country, city. This is ideal when your business operates globally or in two or more regions.

If users' geolocation is not automatically determined through the website or application, use the city or country that the person specified during registration, and based on this geodata, send individualized offers. Additionally, such information can be obtained through email surveys and quizzes on social networks.

Knowing where customers are located allows for tailored interactions and better service. How to do this? Everything comes into play: local slang, local news, and respect for local traditions.

Such messages demonstrate that you have thought out the marketing campaign and have special conditions specifically for a particular location. Also, segmentation by location allows for sending relevant emails or SMS messages taking into account customers' time zones. This makes it easier to attract them to offline stores, if available.

<Img
img="/uploads/audience_segmentation_by_geolocation_in_altcraft_f64504f76b.png"
alt="Audience segmentation by geolocation in Altcraft"
src="Example of audience segmentation by geolocation in Altcraft Platform"
/>

### 3. Behavioral segmentation

Demographic and geolocation information are good starting points for customer segmentation, but in most cases, understanding people's behavior – their interactions with your company – proves key to capturing users' attention. This can include browsing or purchase history on the website or engagement with email newsletters.

<Img
img="/uploads/behavioral_segmentation_ef1560974e.png"
alt="Behavioral segmentation"
/>

For example, different marketing strategies are needed for [**loyalty program**](https://altcraft.com/blog/loyalty-programs-with-examples) participants and those who have interacted with multiple posts on social media. Behavioral segmentation enables the development of methods to attract each customer, re-engage former buyers, or engage those who have not yet made a purchase.

Through behavioral segmentation, the customer team identifies common issues and expands the knowledge base. For example, discovering a pattern among visitors who left the website because the ordering process was too complex. You can address many issues through a detailed database or by streamlining the ordering process.

### 4. RFM analysis


RFM segmentation (Recency, Frequency, Monetary) is a model for dividing the audience into groups based on three criteria: the recency of activity, the frequency of interaction, and the monetary value. This model is popular because it uses concise and objective data. Additionally, the information obtained from RFM analytics is easier to interpret. Such indicators of customer behavior are directly related to their value and engagement.

<Img
img="/uploads/rfm_metrics_explanation_67fe90a92e.png"
alt="RFM metrics explanation"
/>

[**RFM analysis**](https://altcraft.com/blog/rfm-analysis-what-it-is-and-how-to-manage-it) addresses key questions: who among the customers is likely to churn soon, and who will make a repeat purchase. For example, customers who have recently interacted with the company are more open to communication and promotions. People who frequently return to the brand are more engaged, making them loyal. And the customer's monetary value indicator helps the company identify specific segments: customers who make large purchases compared to those who spend little. Thus, by considering customer behavior, you will provide them with relevant content and increase responsiveness to your offers.

## How to personalize content to reach customers

Regardless of how you segment your audience, you also need to understand how to personalize content for them and adhere to established rules.

### 1. Base decisions on data obtained directly from the user

Everyone talks about user privacy online. In the future, without cookie files, companies will have to rely entirely on the data voluntarily provided by the users themselves. These data can be collected in different ways: through forms on the website or in the application, [**various surveys**](https://altcraft.com/blog/what-is-survey-creation-services), and polls. You can also simplify the collection of feedback on the product or service from customers who have used it.

Send users personalized content based on the data that the user wants you to know about them. This way, you will not mislead customers with knowledge of information they did not provide to you.

You should determine which segment is more important in terms of potential profit. Create a loyalty program for exclusive discounts only for those who reach a certain purchase threshold. This does not mean that you should neglect customers who make few purchases. Send them personalized product recommendations, special rewards. Or reduce costs for the segment by making customer service entirely automated.

### 2. Develop the onboarding process

Just as in life, in marketing, you can only make a first impression once. Therefore, it is important to attract users' attention and make an impact from the first minute of interaction. Ask for feedback or participate in a survey to gather valuable information about preferences and expectations. [**Customize the onboarding process**](https://altcraft.com/glossary/why-do-you-need-onboarding) according to the needs through customer path personalization.

Streaming services, such as Netflix, start the onboarding process immediately after a person registers on the platform. Customers indicate three favorite series so that the service can provide personalized recommendations for further viewing.

If you want even more personalized onboarding, add personalized video to the welcome email. It's not as difficult as it seems, as you can use the same script and make some changes based on the preferences and demographic data provided by the user during registration. But for small businesses, this is not an ideal option due to limited time frames and funding.

### 3. Develop personalized blog content

What is the main goal of creating a carefully crafted blog? To answer the audience's key questions. There is a lot of blog content on search engines, so you need to personalize your posts to truly address individual customer problems.

When you customize personalized article recommendations, you show readers the importance of addressing their pressing issues. As a result, the chances increase that visitors will start trusting the blog and returning for valuable content, and website traffic will grow.

Personalize the material according to specific segmentation criteria: demographic or reading history of the blog. For example, if a beauty brand wants to attract male customers, specific posts can be recommended: guides on grooming procedures for men, compilations of products to achieve specific skincare goals.

<Img
img="/uploads/personalized_block_in_help_center_on_altcraft_54b5ae073d.png"
alt="Personalized block in help center on Altcraft website"
src="Personalized block in help center on Altcraft website"
/>

### 4. Embed dynamic content into emails and SMS

Dynamic content blocks are parts of emails or messages that adapt to the recipient's data. Using dynamic content saves marketers time in creating personalized email campaigns for each segment. This way, you create one email template, add dynamic content, and customize it for each segment. As a result, recipients feel that the brand is closer to them and cares about solving their personal problems.

<Img
img="/uploads/personalized_message_template_html_57eea547e3.png"
alt="Personalized message template HTML"
/>
<Img
img="/uploads/personalized_template_01589c5e23.png"
alt="Personalized message template preview"
/>

When you personalize your recipients' experience through [**automation**](https://altcraft.com/blog/what-is-marketing-automation-and-how-it-affects-business-development), you free up time for your team to focus on more important tasks. Use dynamic visual elements to tailor emails to segments from different parts of the world. Another powerful way to use dynamic content is to replicate the sales funnel stage's [**CTA**](https://altcraft.com/blog/what-is-cta) in the email for the segment currently at that stage.

<Img
img="/uploads/email_personalization_0986e99463.png"
alt="Email personalization"
/>

Exactly the same way, you can use dynamic content in push notifications and messages within [**mobile applications**](https://altcraft.com/blog/mobile-app-as-a-marketing-channel).

### 5. Track and analyze your action

All experienced marketers will tell you that there's no point in segmenting your audience and setting up campaigns if you're not evaluating the performance of your personalized communications. Otherwise, it's difficult to determine if your efforts are yielding the desired results. Track the performance of your personalized content—this way, you'll be able to make decisions on how to optimize the customer experience based on objective data.

There are several key performance indicators you should be monitoring: customer engagement and churn rate, conversion rates, and others. Determine which ones significantly impact your business goals and which ones do not.

Make sure to review your analytics regularly because customer needs change, and your business and [**customer base**](https://altcraft.com/glossary/everything-about-the-customer-database) expand. This way, you'll stay informed about where to direct your optimization efforts.

## Conclusion

Customer segmentation and content personalization are two reliable allies for businesses when it comes to creating and tailoring the customer journey. By selecting the most suitable segmentation model, you get closer to finely tuning marketing interactions with customers

By grouping users based on various criteria, you provide them with the personalized experience they expect. As a result, subscribers will respond to your campaigns and may return for new purchases.

Primary source: [**Only Influencers**](https://onlyinfluencers.com/email-marketing-blog-posts/best-practice-email-strategy/entry/how-to-build-a-customer-journey-map-if-customer-needs-are-not-identified)

Customer segmentation and content personalization serve as valuable assets for businesses in crafting and customizing the customer journey. 

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small_customer-segmentation-models.png

thumbnail_customer-segmentation-models.png

customer-segmentation-models.png

About the most effective methods of customer segmentation, how to use them to personalize customer communications and increase their engagement.

4 Customer Segmentation Strategies for Tailoring Content

4 Сustomer Segmentation Models for Content Personalization in 2024

<Img
img="/uploads/hyperpersonalization_cc1f678418.png"
alt="Hyperpersonalization, Definition & Marketing Implementation"
/>

[**According to Forbes**](https://www.forbes.com/sites/kellyphillipserb/2024/01/02/why-tiktok-advice-to-report-your-ex-to-the-irs-doesnt-always-add-up/?sh=28ce103a49bb), 62% of customers expect brands to personalize their experiences, and loyalty decreases if those expectations aren't met. Moreover, customer demands are growing, with users seeking to feel valued and receive individualized offers. Therefore, hyperpersonalization has emerged as a key direction in marketing strategies, expected to persist for years to come.

Artificial intelligence, combined with data, can identify solutions that meet customer needs. This approach enhances loyalty, boosts business revenue, and keeps the brand competitive in a rapidly changing environment.

We'll delve further into what hyperpersonalization is, how it works, the benefits it brings, and the challenges it faces.

## What is hyperpersonalization

Hyperpersonalization is the marketing process of creating content, product offers, and services based on customer requests, identified by artificial intelligence in real-time mode using data.

With this approach, the company's marketing strategy undergoes a transformation, becoming almost personal and giving customers the feeling of being individually attended to, even though personalization is an automated process. Hyperpersonalization relies on AI and machine learning, with data collected from various sources such as CRM systems, websites, and applications. To ensure quick and efficient operation, information is integrated into a CDP platform. [**Altcraft Platform**](https://altcraft.com/en) consolidates customer data to facilitate and expedite personalization. Email, push notifications, SMS, and messenger broadcasts are sent directly from the service.

## How hyperpersonalization is used in marketing

**Advertising.** With hyperpersonalization, advertisements are precisely tailored to the customer's preferences. Users see [**ad offers**](https://altcraft.com/glossary/offer-what-it-is-what-for-it-is-used-and-how-to-come-up-with-it) and creatives that capture their attention. Marketing campaigns also include information about the user's behavior on the company's website: views, saved items, and more.

**Recommendations.** Algorithms analyze customer data and suggest products or content that they will likely enjoy. This method is used in online streaming services.

**Real-time notifications.** After making a purchase, customers receive messages with personalized offers and discounts based on their previous actions. Notifications from loyalty programs are also sent.

[**Chatbots.**](https://altcraft.com/blog/the-benefits-of-chatbots-for-businesses) Through AI analysis of user behavior and their previous interactions with the brand, chatbots provide accurate responses and promptly address customer issues.

## Examples of hyperpersonalization

Netflix was one of the first to implement hyperpersonalization. Movie and series recommendations are generated after processing large amounts of customer data using artificial intelligence algorithms. This content is not just a selection of similar plotlines and genres but rather tailored to the individual's values and mindset.

<Img
img="/uploads/example_of_hyperpersonalization_netflix_768eed87ea.png"
alt="Example of hyperpersonalization from Netflix"
/>

Another example of hyperpersonalization is the unique homepage for each user on Amazon. The accuracy of product recommendations is very high because it takes into account not only past purchases but also the customer's actions and preferences.

<Img
img="/uploads/hyperpersonalizat_on_from_amazon_fda4d1d666.png"
alt="Hyperpersonalization from Amazon, example"
/>

Reebok utilizes hyperpersonalization even for non-registered users. Algorithms track all user actions on the website. With permission to send messages, an individual product list is generated, which is more likely to appeal to the customer.

<Img
img="/uploads/hyperpersonalizat_on_from_reebok_c78710ce00.png"
alt="Example of hyperpersonalization from Reebok"
/>

## Difference between personalization vs. hyperpersonalization

**Hyperpersonalization in marketing** is a new level of [**personalization**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) where the principle remains the same, but the tools change. It involves a deeper understanding of the customer. 

Personalization operates based on accumulated data from past customer purchases. It also takes into account the experiences of individuals with similar characteristics and preferences. For example, online stores often display product recommendations like "people also bought" when selecting an item. A common personalization tactic is addressing customers by name in email campaigns.

Hyperpersonalization, on the other hand, involves a detailed and thorough analysis of customer actions and preferences. It goes beyond just previous purchases to consider specific product characteristics such as color, style, and shape. Recommendations are tailored accordingly. Hyperpersonalization doesn't rely solely on generalized data from similar profiles; instead, marketing communications with the customer are built on individual traits.

For instance, a fitness app won't just offer workout programs based on a user's weight and height but will also gather information from fitness trackers about activity levels. It may also consider body constitution, injuries, and past sports experience.

## Elements of hyperpersonalization

To make hyperpersonalization work, you need:

- **Data** — information about orders, user activity on online sources, personal details to create an individual customer journey. 

- **Data storage platform** to create comprehensive profiles for each customer and not lose important details. With Altcraft Platform, your database includes personal, demographic, and behavioral information. It takes into account all loyalty programs in which the customer participates, as well as their connections with other users. 

- **AI tools** — Hyperpersonalization is not possible manually due to the large volumes of information. AI and machine learning analyze the customer's journey, anticipate their needs, and predict behavior. 

- **Content** tailored individually to identified customer needs and their readiness to make a purchase. 

- **Communication tools** to maintain [**omnichannel**](https://altcraft.com/glossary/omnichannel-its-benefits-for-businesses-and-implementation) presence and deliver information to the customer at the right time. It's important that these are well-thought-out systems that optimize content for different devices. In Altcraft Platform, mailings are done in a single-window mode, taking into account all customer data.

<Img
img="/uploads/elements_of_hyperpersonalization_7b3caf9c74.png"
alt="Elements of hyperpersonalization"
/>

## Advantages of hyperpersonalization

- **Acceleration of the customer journey.** Hyperpersonalization eliminates unnecessary searches for the desired product, and precise offers guide the customer through [**the sales funnel**](https://altcraft.com/blog/what-is-sales-funnel). 

- **Increase in loyalty.** Highly accurate personalization builds greater trust in the brand. Customers understand that they are valued and their needs are considered, leading to increased loyalty towards the company. 

- **Enhancement of engagement.** Content and email campaigns are tailored to the user's interests, motivating them to interact more actively with the brand. 

- **Improvement of market position.** Hyperpersonalization enhances a brand's competitiveness through high-level service. Additionally, the company becomes more technologically advanced, strengthening its position in the market. 

- **Attraction of new audiences.** A personalized approach is always a pleasant bonus for customers who expect high-quality service. If a brand utilizes hyperpersonalization, it becomes another marketing advantage. 

- **Revenue growth.** All the points described above directly or indirectly impact sales. With the right and personalized offers, customers make purchases faster and return for more, as the brand knows exactly what they want. This leads to the formation of stable relationships with customers, which generate revenue for the company. 

- **Simplification of marketing work.** A hyperpersonalized approach is only possible with the use of IT technologies, which take on routine and time-consuming tasks, as well as eliminate human errors. This leaves marketers with more time for creative tasks and strategies.

## Problems of hyperpersonalization

Although hyperpersonalization may seem like a "magic pill," this approach has its drawbacks.

**Cost and time investment.** Implementing tools for hyperpersonalization can be expensive, but it pays off in the long run. Additionally, time needs to be spent gathering customer data, changing processes, and training employees to work differently.

**Uncertainty about where to apply hyperpersonalization.** Brands may act differently in this regard. Some use anonymous data (e.g., from the website) to make offers to users even before they log in. Or they start working with the customer once they have provided their data.

In the first case, individuals may be startled by personalized messages because they feel they are being monitored. Such anticipation is not always perceived positively.

In the second case, the brand needs to wait until the customer logs in. Before this moment, hyperpersonalization simply cannot be achieved. It is also important to ensure the security of user data, which is only possible with reliable IT solutions.

## Summary

Hyperpersonalization is an approach in marketing where individual offers and content are tailored to the customer's interests through artificial intelligence and processing of large amounts of data. Unlike regular personalization, this process differs in the depth of analysis of customer needs: it takes into account not only previous choices but also values and preferences.

To implement a hyperpersonalized approach, large volumes of data, special software, content, and communication tools are required. Then the company will increase loyalty, engagement, strengthen its position in the competitive market, and also generate more revenue because sales will increase. Despite all the advantages, it is important to consider the specifics of hyperpersonalization: the high cost of implementation, responsibility for data storage, time spent on working with information and restructuring processes, as well as the absence of a single correct solution for when to start personalization.

Hyperpersonalization tailors offers and content to individual customer interests using AI and extensive data analysis, considering values and preferences.

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About what hyperpersonalization is and how it works, what benefits it brings and what problems it faces.

Hyperpersonalization, Definition & Marketing Implementation

Hyperpersonalization: What It Is and How It's Used in Marketing

<Img
img="/uploads/spam_filters_8b1bf8dcab.png"
alt="How to Avoid Spam Filters in Email Marketing"
/>

Marketers are constantly challenged with avoiding spam filters, dealing with words and phrases that trigger spam detection, and ensuring that emails land in recipients' inboxes rather than spam folders. While it can be a nerve-wracking and tiresome task, taking a step back can help determine the best course of action to ensure email campaigns don't end up in spam folders.

In this article, we'll explore where to start to ensure emails reach recipients. First, we'll define email spam, discuss tactics to avoid emails being marked as spam, identify words and phrases to avoid, and finally, examine how to test spam filters.

## What is spam and unwanted email

Spam, or unwanted email, refers to inappropriate and unsolicited emails that are sent en masse to a large number of random recipients. 

There's a distinction between spam emails and spam folders, which serve as repositories for anything deemed spam by email clients, internet service providers, and recipients themselves. Not everything in the spam folder is harmful; in fact, the majority of its contents are not. Therefore, it's important to adhere to proper behavior to prevent your emails from being marked as spam.

Malicious content is almost entirely blocked by internet service providers, which have significantly improved spam filters in recent years. This improvement is due to the introduction of anti-spam laws (GDPR, [**CAN-SPAM**](https://www.mailgun.com/resources/learn/glossary/can-spam/), [**CASL**](https://www.mailjet.com/blog/email-best-practices/flight-school-friday-casl-101/), and others) that protect recipient data.

Today, it's easier than ever for users [**to mark an email as spam**](https://altcraft.com/blog/how-to-send-millions-of-emails-and-avoid-spam-filters) thanks to increasingly sophisticated interfaces of email clients. With just one click, all future messages from a specific sender can be marked as unwanted, diverting them to the corresponding folder.

<Img
img="/uploads/unsubscribe_features_by_gmail_0ee59afebe.jpg"
alt="Unsubscribe features by Gmail"
src="Gmail's features make it easy for people to unsubscribe from newsletters they don't want to receive"
/>

## Definitions of email delivery related terms

In the [**Email Delivery Status Report for 2023**](https://www.mailgun.com/resources/research/state-of-deliverability-2023/?utm_source=Marketing&utm_medium=Landing+Page&utm_content=State+of+Deliverability+Report+2023&utm_campaign=Q3_2023_State_of_Deliverability_Report), 36.2% of respondents stated that improving email delivery was their main goal. *The reason is that there is no point in spending time creating great content if it will never be read.*

<Img
img="/uploads/prioritization_and_deliverability_eaf73f8bfc.png"
alt="The relationship between prioritization and deliverability of emails"
/>

But before delving into ways to improve delivery, it's important to start with some key terms on this topic.

### What is a spam filter

When an email passes through a server, it undergoes multiple checks. Internet service providers (such as Gmail, Yahoo) have implemented filters to ensure that spam and malicious email do not reach recipients' inboxes.

It's important to remember that deliverability and delivery are different things. Both terms sound very similar, but they should not be confused.

[**Deliverability**](https://altcraft.com/blog/nine-rules-for-successful-email-deliverability) refers to the set of methods, rules, and recommendations available to the sender to ensure that their emails are most likely to land in recipients' inboxes rather than in spam folders.

### What is a spam trap

A spam trap is an email address that is not used for communication and should never receive emails. If email campaigns are sent to this address, they are automatically flagged as spam, significantly lowering the sender's reputation with internet service providers.

### What is a soft bounce

A soft bounce occurs when an email is returned to the sender due to temporary delivery issues: if the recipient's mailbox is full, the server is unavailable, or the message is too large.

### What is a hard bounce?

A hard bounce occurs when an email is returned to the sender because it cannot be delivered under any circumstances: the address is entered incorrectly or is fake because the subscriber was interested in receiving a bonus upon registration, not a newsletter.

Therefore, it is always useful to set up double opt-in - double subscription confirmation.

### What is a hard bounce

A hard bounce occurs when an email is returned to the sender because it cannot be delivered under any circumstances: the address is entered incorrectly or is fake because the subscriber was interested in receiving a bonus upon registration, not a newsletter.

Therefore, it is always useful to set up [**double opt-in**](https://altcraft.com/blog/what-is-double-opt-in) — double subscription confirmation.

## How to deliver email to the inbox, not the spam folder

### How to prevent email from going to the spam folder

You can create the most magnificent marketing email campaign in the world, but if it doesn't land in the inbox, no one will read it. All efforts will be in vain.

But there are several excellent pieces of advice to follow to improve sender reputation and deliverability.

### Sender address

- Avoid using free email addresses based on web services (e.g., Gmail) for sender addresses. 

- Use your own email address with a domain associated with your website. Then you can set up DKIM and SPF, allowing recipient servers to authenticate the mail. 

- Make sure your website is active and functional. Sending emails from an address associated with an inactive or empty website will raise suspicion among internet providers.

### Contact lists

- Do not buy or copy contact lists from third parties. Such lists often contain many spam traps and low-quality email contacts, which violates sending policies. 

- Create quality contact lists by collecting email addresses through subscription confirmation on your website. Double opt-in is recommended to confirm the subscription, preventing mistyped or fake email addresses. This also confirms that the user agrees to receive your emails. 

- Regularly update and clean your contact lists. Monitor data and remove old addresses that do not interact with emails or are blocked. Focus on people interested in your mailings.

### Content of the email

- Do not WRITE ALL WORDS IN CAPS [**in the subject line**](https://altcraft.com/blog/how-to-write-email-subject-lines) or in the body of the email. 

- Do not use spam words: "Free," "Sale," "Money," "Hot offer," etc. 

- The subject line should be 35-50 characters. The longer it is, the more likely it is to be marked as spam. 

- Send content that subscribers have signed up for and are expecting. If you send inappropriate content, subscribers will mark you as a spammer. The more people open your emails, the better your reputation. 

- Send emails regularly.

## Tips on how to send mass emails and avoid spam

[**Mass emails**](https://altcraft.com/blog/mass-mailing) in the inbox, unfortunately, often annoy, especially if you do not monitor your lists, campaigns, and sending process.

Our current tips will help you ensure the delivery of your emails.

### Monitor your contact list

When it comes to email campaigns, we start with the contact list.

The first thing to look at when experiencing delivery issues is the email address lists. Then you need to determine:

1. The origin of the contacts. 

2. Whether they interact with the content, and if so, how. 

3. How often do you clean up your contact list.

Under no circumstances should you buy contact lists or download them from the internet. This will not only reduce the deliverability of your emails. In a world where people are increasingly concerned about data privacy and where legislation is becoming stricter, the best practice remains natural list building of email addresses.

Next, pay attention to how users interact with the content. What are the open rates, bounce rates, and blocks? If you don't monitor this, the numbers can steadily increase, and as a result, deliverability will decrease.

Although users who don't want to receive emails usually unsubscribe, they may also ignore emails or mark them as spam. Email providers (such as Gmail or Outlook) will also start filtering your emails and sending them to spam on behalf of their users. As a result, the responsibility lies with you: you need to clean email lists and maintain growth in open rates and deliverability.

*Remember: brands that maintain list cleanliness see an increase not only in open rates but also in the overall number of email openings due to higher-quality deliverability.*

### Use email authentication with SPF, DKIM, and DMARC

Trust and permission play a key role in a successful email marketing strategy, making this channel one of the most powerful in sales.

To avoid ending up in spam, you need to assure email providers like Gmail, Yahoo, or Outlook that you are indeed you.

You don't need to fake an ID for this. It's a bit more complicated.

Here are a few points to consider to earn trust for your email, prove your identity, and pass spam filters:

- SPF (Sender Policy Framework) is an email validation protocol designed to detect and block forged email senders. It has a mechanism that allows receiving mail exchangers to verify that incoming mail from a domain actually originates from the IP address authorized by the administrators of that domain. 

- DKIM (DomainKeys Identified Mail) is an email authentication method designed to detect forged emails. It is a way to sign and verify email messages at the MTA level using public and private keys. Public keys are published in DNS TXT records. DKIM authenticates the source and its content. 

- DMARC (Domain-Based Message Authentication Reporting and Conformance) is an email validation system that detects and prevents email spoofing. It tackles phenomena such as phishing, spoofed sender spam, where emails appear to come from a legitimate organization at first glance.

## How spam words trigger spam filters

Over the past few years, internet providers have become more resourceful and have moved away from traditional spam triggers.

Now they learn from our interaction process with messages in our inbox. From this information, they determine whether to send an email to spam or deliver it to the inbox.

And knowing this, how do you decide what to write in the email subject line and what not to write in it?

Words can confuse users, leading to more spam complaints than usual. And such complaints, along with low recipient engagement with the email, negatively impact the sender's reputation and, ultimately, affect the deliverability of future mailings.

<Img
img="/uploads/spam_complaints_b8d7397563.png"
alt="Spam complaints within a campaign"
/>

How many times have you seen the word "Free" in an email subject line? And how many of them actually had free offers? Most likely, very few. And that explains why, when you see "Free" in your inbox, you just roll your eyes ironically in response to an attempt to entice you to open a deceptive email.

If people still open the email and see that there is nothing free there, senders receive a high frequency of complaints: sending emails to spam or unsubscribes, which will affect the sender's reputation.

Below are some common terms on the subject of spam, so you don't use trigger words and aren't mistaken for spammers or, worse, phishers.

### Money transfer

"Money transfer" are favorite words of phishers. If you see this in the subject line, you are likely being lured to open the email. Make sure the sender's address is correct, then there's a chance the email is genuine. The address billing@ex-ample.com and the address billing@example.com are different email addresses. Scammers try to take advantage of our carelessness.

### PayPal, Visa/MasterCard, or the name of any other bank

This is another case where a good name can be used for phishing.

Scammers often try to impersonate financial institutions and send emails with similar corporate colors and style. But the links lead to mirror sites that resemble the real company websites.

Consumers should check the sender's address and domain name. And marketers should use DKIM, SPF, and other authentication tools to prevent fake emails from harming the company's reputation.

### Lottery, gift, prize

These are always seen in the spam folder. Hundreds of thousands of emails are sent to people with subject lines claiming they have just won a big prize or that they have been selected for a lottery they never entered. You have to be very naive to believe this, but scammers still send them out by the millions because it's quick and easy.

### Urgent, please help

For many years, variations of the "damsel in distress" scheme have appeared, where phishers pretend to be wealthy individuals from a distant country who, being pursued by criminals, are forced to flee to a safe place.

For some reason, they choose you as the sole caretaker of all their money and promise a large reward for helping them open an account at a specific bank so they can transfer their funds. Such spammers have become the subject of many jokes, so avoid using similar words to avoid being among them.

###Casino, free spins, deposit bonus

Spammers associated with gambling often send campaigns promising high earnings, free entry, or doubling deposits. If the links do not lead to a well-known site, such emails are likely to end up in the spam folder.

Source: [**Mailjet**](https://www.mailjet.com/blog/deliverability/avoid-email-spam-filters/#subchapter-14)

Marketers face the ongoing challenge of avoiding spam filters and ensuring emails land in recipients' inboxes, not spam folders.

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thumbnail_spam-filters.png

spam-filters.png

About what email spam is, what tactics can be used to prevent emails from getting into spam.

Spam Filters: How to Avoid Them in Email Marketing

How to Avoid Spam Filters in Email Marketing

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