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<Video
url="https://www.youtube.com/embed/1zLThuVSTF0?si=LwlJNm2-BCq1Omgy"
/>

To attract and engage audiences, marketers employ various tools and formats. It's crucial for companies to stand out amidst competitors in the information flow and draw attention to themselves.

Thanks to marketing technologies, interactivity is now available. One of the real-time ways to conduct marketing communications has become quizzes. It's a simple and understandable format that serves marketing purposes. Advertising campaigns become non-trivial and more effective.

In this article, we'll discuss what quizzes are, how quiz marketing benefits businesses, and how it works.

## What is a quiz in marketing

A quiz in marketing is a promotional tool built on an interactive survey that provides a result at the end. The user answers questions one by one (usually in a multiple-choice test format), and at the end, they receive a description (for example, of their qualities) immediately or after providing an email address.

Quiz marketing works for selling products and services and is also used as a way to research the audience and gather feedback.

## What quizzes are: examples

<Table>
| Type | Description |
| ------ | ------ |
|Test | Needed to find the right product for the customer by identifying preferences through a series of questions. For example, it reveals what kind of dress will suit a girl according to her body type. Or the best model of a sofa for the user's interior is determined. |
| Survey | Used for audience research, gathering feedback or simply to support communication. The motivation for completing the survey is often a bonus at the end. |
| Quiz | A way to entertain and engage through gamification elements. The user answers questions to test their knowledge or to get a prize. Quiz quiz can set a competitive effect. |
</Table>

**Additionally, quizzes are divided into:**

- **Entertainment quizzes:** The goal of such quizzes is to evoke a smile and uplift mood rather than directly sell. These quizzes are created with humor, shared among friends, and their results are shared on social media. For example, after movie premieres, quizzes in the style of "which character from movie N are you?" appear. 

- **Educational quizzes:** These are knowledge checks where users learn new facts. This type of quiz is beneficial for educational platforms. For instance, a foreign language school will likely offer a test to determine the student's proficiency level. 

- **Sales-oriented (marketing) quizzes:** An alternative to traditional online advertising packaged in an engaging format. Instead of directly suggesting, for example, choosing a sofa, a brand may offer a quiz to determine which option best suits the customer.

Each type can be called engaging because the user interacts with the content and explores it.

## Advantages of quizzes

Quizzes are a full-fledged marketing tool that helps:

**Collect leads and expand the company's** [**customer base.**](https://altcraft.com/glossary/everything-about-the-customer-database) Users are more willing to leave their contacts to receive an answer after completing the quiz than just because.

**Present their product or service in a non-standard way.** A well-designed quiz is built around the brand's product, presenting it not directly like in standard advertising but more organically. This format irritates the audience less and also entertains because of its humorous questions.

**Explore potential or existing customers.** Quiz responses not only provide answers to the customer (for example, regarding product selection) but also gather data about the audience's preferences. Based on this information, segmentation is carried out.

**Assist the sales department.** Quiz advertising can perform managerial functions. The customer answers questions that a salesperson would typically ask to identify needs. However, this function is taken over by an online survey. Sales managers then use quiz data in their interactions with customers. [**Personalization**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) is also involved because initial information about the customer is already available.

**Save on customer acquisition.** The cost of a lead generated from a quiz is often lower than from standard advertising. Launching such a format is cheaper than, for example, targeting, and there is also a chance that your quiz or trivia will go viral.

**Engage users with content.** Quizzes and surveys are interactive and unusual types of content that motivate people to stay on the brand's page or in the application longer.

## Where quizzes are placed

Quizzes are considered universal tools because they can be embedded on various platforms.

### Website

The first option is to place the quiz on one of the web pages as a block or a separate window. The second option is to create the quiz in the form of a landing page that collects leads in an interactive format.

### Social Media

Usually, social media platforms are chosen as a way to promote the quiz, which users access via a link to an external resource (website). However, there are options where quizzes are launched within social media platforms through internal applications (e.g., VKontakte).

### Email Campaigns

Email serves as an advertisement for your quiz when users need to navigate to another page via a link or button. But with [**AMP technologies**](https://altcraft.com/blog/amp-emails-what-they-are-their-types-why-required), there is an opportunity to take the quiz directly in the email and receive the results immediately.

<Img
img="/uploads/example_of_a_survey_be5565573c.png"
alt="Example of a survey in an email newsletter"
src="Example of a survey in an email newsletter"
/>

## How to create your own quiz

**1. Set goals.** Determine the marketing objective for which you need a quiz: lead generation, brand or product recognition, gathering information about customers, and so on. It's essential to understand precisely why you're using this format to avoid wasting resources.

**2. Decide on the quiz topic, type, and platform for placement** (see above for more details). The options should align with the goals you've set. It's illogical to create just an entertaining text if you want to quickly acquire new leads because such an option is likely to work for virality.

**3. Create content for each quiz block**, which includes:

- Catchy headline and description. It's crucial to grab the person's attention and appeal to their interests because there won't be a second chance. Don't be afraid to get creative. 

- Questions for the test/survey/quiz. Make them simple, understandable, and not time-consuming for the user. Illustrate them with pictures if appropriate.

<Note>
Important! Don't make the quiz too lengthy for people to complete it.
</Note>

- **Result form.** Plan the content of the response after completing the quiz and the options for obtaining it: immediately on the screen or after the person leaves their email or phone number. To increase the quiz's virality, it's useful to add the option to share the results on their social media page.

**4. Create the quiz in a reliable service.** There are various options available that differ in features and price. For example, Marquiz, Flexbe, Madtest, Envybox, "Konversus," and so on. These services offer sets of templates, interactive elements, design customization, and integration with analytics systems. There are free trial tariffs.

**5. Test the quiz.** Everything should work correctly, and errors in the text are unacceptable. A small technical issue can ruin the impression and make the user abandon the test.

**6. Launch the quiz and analyze the results.** Evaluate the effectiveness of the advertising campaign. For example, the number of leads added to your customer database. It's also useful to assess user actions within the quiz itself: how many people started but didn't finish, how many reached the middle and quit, and how many users successfully completed it. This is important for refining the content and future campaigns.

## Mistakes in creating quizzes

**Too many questions and their complexity.** Your quiz should not tire the user or steal their time. Remember that it's not an exam, so make the questions simple but not primitive.

**Lack of benefit for the individual.** If it's unclear why someone should take the test, they simply won't. It's important to explain in the description what users will gain in the end: new self-knowledge, a beneficial offer, or a bonus from the company.

**Lack of a result.** Even if you're gathering feedback for yourself, provide a symbolic description of the user's status. For example, assign them a level in your company's hierarchy like first, second, and so on.

## Summary

A quiz is an interactive format of tests, surveys, and quizzes that works in marketing to attract new customers, engage users, study the audience, and increase sales. Such formats are placed on the brand's website, a separate landing page, on social media, and offered to subscribers via email. Quizzes can be entertaining, educational, and sales-oriented. Each type addresses different business objectives.

Quiz marketing is a simple way to make content non-trivial. Tests are created in specialized services and added to brand platforms. To create a quiz, you need to set a goal, come up with a catchy headline and description, plan the content (questions and their quantity). Then, check the questionnaire's correctness and launch it for the audience.

Quizzes in marketing engage users, boost sales. They appear on websites, social media, emails. Creation involves goal-setting & content crafting.

medium_quiz-marketing.png

small_quiz-marketing.png

thumbnail_quiz-marketing.png

quiz-marketing.png

About what a quiz is, how quiz marketing is useful for business and how it works.

Quiz as a Tool in Digital Marketing: Definition & Advantages

Quiz as a Tool in Digital Marketing

<Video
url="https://www.youtube.com/embed/rAupz2rJSlQ?si=a9UHisSz1YvS33LD"
/>

In today's rapidly changing business world, it's crucial for businesses to look ahead and plan for the future. This is necessary to maintain stability, plan resource utilization, and develop growth strategies. Nowadays, companies turn to technology for "predicting the future," specifically to predictive analytics tools.

At the core of the method lies the use of big data and complex IT systems. Predictive analytics is essential for decision-making leading to increased operational efficiency, sales, and other business improvements.

In 2023, [**the predictive analytics market reached $14.71 billion**](https://www.fortunebusinessinsights.com/predictive-analytics-market-105179), and by 2032, this figure is projected to grow to $95 billion. Software for predicting future events based on data is being implemented in various business sectors and is becoming part of our daily lives.

<Img
img="/uploads/forecast_analytics_market_growth_6bd6b80d78.png"
alt="Popular methods of predictive analytics"
/>

In the article, we'll discuss what predictive analytics is, its benefits, and how this information analysis direction works.

## What is predictive analytics

Predictive analytics is the creation of forecasts of future events in business through working with existing (historical) data using statistical, mathematical, and [**machine learning**](https://altcraft.com/blog/methods-and-techniques-of-machine-learning) methods. As a result, the company obtains estimates of probabilities that may occur and impact the business.

Forecasting is a branch of data analytics. There are also descriptive, diagnostic, and prescriptive types of working with information.

Predictive analytics began to take shape in the 1940s during World War II. British mathematician Alan Turing and his team attempted to crack the German Enigma cipher machine. The algorithm changed daily, complicating the process, and it was necessary to "predict" the principles behind these changes. In the end, Turing managed to guess the commonality in the new combinations. It turned out to be a recurring phrase, through which they deciphered the principle of operation.

Later, IT technologies were incorporated into predictive analytics. Initially, the field where such algorithms were used was limited to financial departments. However, with the development of tools and changes in company needs, Big Data analytics became available to other business areas and employee categories. It began to play a role in decision-making for line managers and top executives. Now, not only historical data but also real-time information is used. This increases the efficiency and speed of forecasts.

## Methods of predictive analytics

Popular methods of predictive analytics include:

**Regression** — assessing the relationship between variables and the influence of one on another. It is used when processing large data sets. For example, this method determines how changes in price will affect sales.

**Decision trees** — classifying data based on specified variables. It is applied to predict what decision a person will make. The name is explained by the type of model, which resembles a tree. A branch represents a possible choice, and the leaves indicate the results.

**Neural networks** — a machine learning-based model used for tasks involving complex interactions. Neural networks are useful in situations where there are no specific formulas for processing data.

<Img
img="/uploads/popular_methods_of_predictive_analytics_107495b905.png"
alt="Popular methods of predictive analytics"
/>

## Benefits of predictive analytics for business

**Making objective and accurate decisions based on data** instead of relying on the experience of managers and guesswork. This reduces risks and avoids unnecessary resource expenditures on incorrect actions. For example, predictive analytics is needed for dynamic pricing.

**Maintaining competitiveness in the market.** The more information you obtain about future events, the better prepared you will be for changes. Then your offerings will be more precise than those of competitors.

**Increasing profits.** Forecasting indicates changes in demand, delivery times for goods, and can even predict when equipment essential for business operations will fail. Knowing the "future" helps the company adapt to the situation, hedge risks, and continue operating efficiently. Thus, the business will maintain and even increase its income by increasing LTV (customer lifetime value), as forecasting contributes to retaining customers longer through targeted marketing communications.


## What industries use predictive analytics

<Table>
| Sphere | How it is applied | 
| ------ | ------ |
| Sales | Estimation of supply and demand for up-to-date stocking of goods. Competitive pricing is also established and options for cross-selling are compiled based on customer preferences (user data is used for this). Retail predicts changes in demand based on seasonal and even climatic factors. | 
| Finance | In banking, risk predictions are important for loan disbursement. Machine learning algorithms are used to analyze the probability of whether a customer will be able to repay a loan or not. Predictive analytics also helps fight fraud in the financial sector. | 
| Marketing | Creating offers that hit the exact needs of customers. Precise advertising campaigns are created on the basis of the data, i.e. personalization through different communication channels works. This improves the quality of service, because people are not offered unnecessary content and promotions. | 
| Manufacturing | Predicting the timing of wear and tear and equipment failure in order to make repairs in time. It also predicts the volume of output, what factors may affect the output of the product. In addition, forecasting is important for production safety and accident prevention. | 
| Medicine |Patient history and observation data are used to develop disease variants and prevent them. Forecasting also works in organizing the work of clinics: on the basis of the data, the necessary amount of drugs is ordered and an optimal schedule is formed. | 
| Personnel Management | Predictive analytics "predicts" the compliance of employees with the company's values, calculates the possibility of employee dismissal and their reasons. Based on qualification data, lists of skills required for effective work are generated. |
| Logistics | Forecasting is important to build up sufficient stock levels in warehouses and to assess situations for deliveries at the right time. | 
| Cybersecurity | Potential methods of information theft are identified. This is how companies can minimize them or protect data storage completely. Cyberattacks are [**an urgent problem**](https://www.comnews.ru/content/231183/2024-01-29/2024-w05/1010/kolichestvo-kiberatak-2023-g-vyroslo-11) that companies face. Therefore, prediction in this matter is very important. |
</Table>

## Risks in predictive analytics

Despite significant advantages, predictive analytics is not a panacea.

- Firstly, there is always a risk that even the most advanced algorithm will make mistakes. Therefore, it is not advisable to fully rely on forecasts. 

- Secondly, predictive analytics may not consider all factors if there is insufficient data for analysis or if the data turns out to be inaccurate. 

- Thirdly, the emergence of a "black swan" event in the future is not excluded, rendering all forecasts unreliable. This is an unexpected and previously unknown factor. For example, the COVID-19 pandemic in 2020 turned out to be such an event for many business sectors, necessitating urgent process adjustments.

Predictive analytics streamlines business operations, but currently, this method cannot fully bear the responsibility for business decisions.

## How predictive analytics works

Predictive analysis relies on large volumes of data. Machine learning algorithms and complex algorithms are applied to process the information.

**The stages of data analysis for forecasting include:**

1. **Goal definition:** A specific business task is set that needs to be solved with data-driven predictions. For example, "determine the demand for product N in the future year." 

2. **Selection of forecasting methods** that will lead to the goal. It is important to identify the correct sources and types of data. 

3. **Data collection:** Information from various sources is integrated into a single system (e.g., [**CDP**](https://altcraft.com/en)). The specific data to collect depends on the sphere of analysis and project goals. For example, marketing channels provide information about user actions on the website, completed conversions, gender data, and so on. It is important that large volumes of data are required for accurate forecasting. 

4. **Information processing**, including data cleansing. At this stage, unreliable and incomplete data are removed. This is usually a lengthy but crucial process that affects the accuracy of forecasts. 

5. **Model building and validation:** Analysis parameters are set, based on which artificial intelligence provides forecasts. Model parameters may be adjusted as needed. 

6. **Result retrieval and implementation:** Based on the forecasts, customers (who may be managers) make strategic and other decisions.

## Summary

Predictive analytics is a data-driven approach where future events are forecasted based on past information. This method improves business metrics as managers make informed decisions, leading to increased profitability and market competitiveness.

Machine learning and methods such as regression, decision tree, and neural networks are utilized in predictive analytics. This approach is applied across various sectors including sales, marketing, finance, manufacturing, healthcare, human resources management, and logistics.

To make forecasts, goals are set, data is collected and processed, and predictive models are built. As a result, clients receive scenarios of future developments and make business decisions accordingly.

Predictive analytics forecasts future events from past data, enhancing business metrics and decision-making for higher profitability and market competitiveness.

medium_predictive-analytics.png

small_predictive-analytics.png

thumbnail_predictive-analytics.png

predictive-analytics.png

About what predictive analytics is, what benefits it has and how this area of information analysis works.

Predictive Analytics: Definition, Where Used & How Works

Predictive Analytics: What It Is and How It Works

<Video
url="https://www.youtube.com/embed/S05GIKUSKZ8?si=pu6OsTW-wKWB4wpR"
/>

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

<Video
url="https://www.youtube.com/embed/-XoY_TEXDpE?si=3AV0SX-gFo2lX9WA"
/>

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

<Video
url="https://www.youtube.com/embed/R_l6jKw1aBQ?si=1TGyHFhGQIxuL_6V"
/>

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

<Video
url="https://www.youtube.com/embed/b3hytUeWoqU?si=sot_VFPRvuOnBX_6"
/>

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

<Video
url="https://www.youtube.com/embed/686w8f9QLI0?si=2Wk33NMgfQ4n3wZV"
/>

[**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/developing_a_customer_journey_map_b8fe85c84e.png"
alt="Developing a Customer Journey Map with Unspecified Needs"
/>

Marketers create customer journey maps (CJMs) to understand how consumers behave from the moment they first realize the need for a product to the point of purchase. But what if the product can solve problems that potential customers haven't even thought about yet?

## Why customer needs are essential for creating a CJM

Chances are, everyone has encountered a situation where a company offered exactly what they were thinking: "This is just what I need!" even if they didn't realize it before. Those distant from marketing may dismiss it as mere coincidence. Experienced marketers, however, recognize it as a powerful [**sales funnel**](https://altcraft.com/glossary/sales-funnel-what-it-is-its-types): identifying customer pain points at the right time and place based on their goals, motivations, emotions, and past experiences.

A customer journey map (CJM) helps marketers identify the problems customers face and develop corresponding offers and solutions.

Here's an example of a CJM for a fitness club client without an explicit need at the beginning of the customer journey:

<Img
img="/uploads/example_of_a_cjm_e0716dc898.png"
alt="Example of a CJM for a fitness club client"
/>

The most important thing here is for the customer journey map to always remain customer-centric. It's necessary to gather essential data about customers to understand their needs, preferences, disappointments, and reasons for problems.

To ensure that you truly need all the information you receive, pay attention to how you formulate questions. For example, if you provide email marketing services, you can ask questions like:

- "How did you realize you needed email campaigns?" 

- "What goals did you want to achieve with them?" 

- "Were you able to achieve these goals?" 

- "What difficulties hindered you in solving the problems?"

## What to do if customer needs are undefined

If you're unsure about what customers want, analyze other data and focus on overcoming small challenges they may potentially encounter on the path to purchase and, consequently, on the path to becoming loyal brand customers.

Let's consider which parts of the CJM need special attention when working with such customers and how to organize this process.

### Creating customer personas

A customer persona is how you envision the ideal customer: their characteristics, preferences, and so on. The number of such personas depends on the brand's specifics. To understand who your ideal buyer is, use qualitative and quantitative research, surveys, and other audience analysis methods.

Start by dividing your audience into [**primary segments**](https://altcraft.com/blog/how-and-why-to-segment-target-audience) and formulate hypotheses about the characteristic features of your customers. Then, confirm these hypotheses by thoroughly surveying representatives of various segments. This way, you'll have up-to-date information about customers' goals and motivations, understanding what your customers think and feel at each stage of the journey.

Save this information in the customer persona profile and attach a photo (you can generate them based on typical customer characteristics using artificial intelligence). It's best if you create separate customer journey maps for each persona.

For example, it might look like this:

<Img
img="/uploads/example_of_customer_profile_e5c18fbc4b.png"
alt="Example of customer persona profile"
/>

This approach requires a lot of effort, but it will be much more effective than just creating customer journey maps based on your assumptions.

## Describe communication channels

When you know who your customers are, you can easily select the appropriate communication channels to start sending them information about products or services right from the start through the right channel. For example, Generation Z representatives respond better to product promotion on social media and listen to the opinions of bloggers and celebrities they follow. Conversely, older generations gather information about products and services from all over the internet: they watch reviews, read [**customer feedback**](https://altcraft.com/blog/how-to-use-customer-feedback-to-increase-sales), etc.
Once you've chosen the primary communication channels, consider how you'll convey information to the user: through videos, email newsletters, contextual marketing, blog articles, and more.

Here's an example of communication channels for CJM:

<Img
img="/uploads/examples_of_communication_channels_83eefcf79d.png"
alt="CJM: examples of communication channels"
/>

### Describe the stages of the customer journey

The number of stages may vary, but typically six steps are identified in the customer journey towards becoming a brand advocate:

1. Need;
2. Interest;
3. Research;
4. First purchase;
5. Loyal customer;
6. Brand advocate.

Record the goals and expectations of customers at each stage of the journey - this will help address minor challenges at any of the steps.

For example, here are the goals and expectations of a fitness club's customers at different stages of the customer journey:

<Img
img="/uploads/examples_of_goals_0622aa8d56.png"
alt="Examples of goals at CJM stages"
/>

### Identify barriers along the customer journey and find ways to overcome them

Barriers hinder people from making a purchase: high prices, poor customer service, negative reviews, etc. These difficulties may not always be obvious: for example, inconvenient parking or an unpleasant customer service representative. Such details are often extremely difficult to predict, so it's important to learn about them directly from your actual customers.

For each stage of the journey, find several ways for customers to overcome obstacles and become loyal patrons.

In the example below are potential barriers along the fitness club's customer journey:

<Img
img="/uploads/barriers_71489b5bb4.png"
alt="Barriers within a customer journey map: examples"
/>

### Create marketing driving forces

Driving forces help people move to the next stage of the customer journey map: discounts, customer reviews, bonuses, and so on. They can vary depending on the customers' goals at each stage: for example, if someone wants to save money, the main driving force will be cost. And if someone wants to join a community, then exclusive club events for members will work in the right direction. To understand what's important to customers, send email surveys, SMS, [**push notifications**](https://altcraft.com/blog/mobile-marketing-101-push-notifications), use social media, and other tools to gather customer feedback.

Here are possible driving forces for a fitness club customer:

<Img
img="/uploads/driving_forces_within_a_cjm_3d50d5e88b.png"
alt="Marketing driving forces within a CJM"
/>

## Conclusion

If a potential customer hasn't yet realized whether they need the product, start creating a customer journey map by identifying the customer persona.

Analyze your audience, determine who your customers are, and which communication channels are best to use to attract them. Use these channels to send information that will help future customers solve their problems.

For each stage of the customer journey map, think about:

- the obstacles customers may encounter; 

- ways to overcome these problems; 

- possible driving forces that will move customers to the next level of the customer journey map.

When all communication components with potential customers are added to the map, you'll see the weak points in the customer's journey. CJM will show you what you're doing right and what can be improved to help customers realize their needs, make informed decisions, and take action.

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)

Create a customer journey map to guide uncertain customers, addressing obstacles and employing driving forces to advance them through each stage.

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In this article we will talk about the customer journey map and how to build it if the needs are unknown.

CJM with Undefined Needs: How to Build It & Examples

Developing a Customer Journey Map with Unspecified Needs

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