How to Implement an Omnichannel Personalization Strategy using Identification and Zero-Party Data Software

Karthik: Hello everybody, welcome to yet another episode of Inbox Invaders. Today, I have the pleasure of hosting Noah Rahimzadeh, who is Head of Partnerships at Digioh. Welcome, Noah!

Noah: You pronounced both of those amazingly correctly. I'm surprised. Most people miss Rahimzadeh and Digioh. So we're off to a good start.

Karthik: It's so easy. I mean, it sounds so familiar. Welcome to our audience to yet another episode of Inbox Invaders. We're really excited to host Noah today. It's been a long time since I wanted to host Noah because he's so energetic. You bring so much fun to our conversations. But before I hand it over to you for introductions, I want to tell our audience that I've been in D2C for not too long, but from what I've seen, Digioh is one of the smartest companies.

If you guys aren't following them on social media, LinkedIn, or YouTube, you should. They produce awesome content. One aspect of Digioh that I really found exciting is behavioral targeting. Not a lot of companies have understood this in the D2C space. D2C is all about customer preferences, behaviors, patterns, and demographics. I think the Digioh team has cracked it. So do follow them. With that, over to you, Noah, for your introductions. Tell us more about yourself.

Noah: Thank you so much, Karthik. I'm so pumped to be here. I'll get into my background, but Magnet Monster is something I'm super excited about. We hit the ground running with some of your content, talking about the great things you're seeing Digioh do. We're going to feature you guys next week in our first big agency piece. I'm excited to return the favor there. I've been following you guys for years, and I'm excited to be here and appreciate you having me.

Karthik: Awesome! Let's dive into your background.

Noah: Sure! Quick background: I've spent my career as an entrepreneur and Martech partnerships leader. I co-founded a health IT startup out of college and then went on to help enterprise Martech organizations like Return Path, Airship, and Movable Ink scale through partnerships. Just before Digioh, I spent two years building the partnerships program from scratch at Malomo, a Shopify order tracking platform that many D2C listeners will be familiar with. Now, I'm just over two months into my role here as Head of Partnerships at Digioh, where our goal is to drive conversions everywhere. We'll get into that in a minute.

Karthik: We will, we will. You already sound like a pro. You've been doing partnerships all your life. You're an entrepreneur with so much experience. Thank you for that introduction, Noah. So, with that, let's move on to our first question and keep the conversation flowing.

My first question to you today is, Digioh talks a lot about behavioral targeting, guided selling, and customer preferences. These are key terms in your content, videos, blogs, and customer case studies. Could you tell us what behavioral targeting in marketing is and why it is important for DTC brands and entrepreneurs?

Noah: Yeah, sure. I think of behavioral targeting as marketing to customers and moving them down the funnel based on their actions across various channels. It can be as simple as a browse abandonment email or as sophisticated as a fully dynamic website based on user behavior. For example, a browse abandonment email is sent when I browse a product on a site but don’t purchase or add it to my cart. A highly effective tactic is sending an email reminding me about that item I showed interest in.

Dynamic websites, on the other hand, personalize the entire on-site experience based on past behavior. Think about a travel booking site that tracks your previous searches and shows promotions for those destinations when you return. One challenge in today's marketing environment is the "cookie apocalypse," the deprecation of third-party cookies, and other privacy regulations. This makes it crucial to capture first-party and zero-party data.

Behavioral targeting is shifting towards what I like to call full customer journey targeting. We need to target customers based on much more than just their behavior across channels.

Karthik: I see where you're heading. You're talking about targeting customers across their journey, moving towards an omnichannel approach, which we will discuss shortly. Those were excellent points about behavioral targeting, from advanced levels like dynamic websites to simple actions like gathering zero-party data and personalizing it at scale. We'll dive deeper into this throughout the podcast.

No matter how smart the tools and software get, it's impressive how Digioh understands the needs of DTC entrepreneurs and their customers. I think many in the market haven't yet grasped behavioral targeting as you have. Could you explain how it differs from traditional marketing methods?

Noah: Sure, I've got a couple of examples that I'll share later, but to keep it brief: traditional marketing targets broad audiences in a batch-and-blast manner, such as sending an email to your entire list or customer base. It might consider general demographic data like location or age, but that’s about as sophisticated as it gets.

Behavioral marketing, as we discussed, is dynamic and personalized across every channel and touchpoint of the customer journey. It’s all about creating a tailored experience that responds to individual customer actions and preferences, making every interaction more relevant and engaging.

Karthik: Got it. Awesome. Yeah, it's really dynamic, and you probably are going to scale it. That's a great point there.

Noah: From a Magnet Monster perspective, you have all these amazing use cases and client examples. How much traditional marketing are you really doing these days? Is it still something you leverage from time to time, or is it completely irrelevant for you?

Karthik: We do a lot of behavioral marketing, but not to the extent you guys have cracked it. The depth to which you have personalized websites, for example, is something many brands understand the need for but haven't fully implemented. Maybe about 30-40% of our clients engage in in-depth behavioral marketing. They understand retargeting and the need for zero-party or first-party data. However, when it comes to building personalized websites and guiding customers through a selling journey, that's still not fully realized. This means there's a huge untapped market, and kudos to you and your team for figuring that out.

Noah: Yeah, we're trying to solve that challenge. There are so many brands that aren't fully educated on the benefits of the tactics we're discussing today. Hopefully, this helps.

Karthik: Absolutely. The awareness is surely the problem. When people understand the benefits, they will see the value. Looking through your case studies, the way you're personalizing customer experiences is impressive. When people buy products like hygiene products, personal care products, hair care, and skincare, they share a lot of personal information. Guided and personalized selling comes into play here. Scaling this approach changes the equation versus traditional marketing.

Noah: Yeah, absolutely.

Karthik: That brings us to the next query I wanted to ask. We talked about the lack of awareness and knowledge among D2C brands and entrepreneurs. What do you think are the biggest challenges in personalizing these campaigns? Everyone understands the need for email and SMS channels to be in sync, but what are the biggest challenges DTC brands face in implementing a multichannel personalization strategy?

Noah: That's a great question because there are many challenges. From my perspective, there are three core challenges: user identification, data collection, and data utilization. Identification and collection are irrelevant if you can't act on the data you have about your customers.

Karthik: Let's break it down.

Noah: User identification is simply knowing who your users are across the customer journey. It's not just behavioral targeting but full customer journey targeting. We need to provide personalized experiences every step of the way to drive customers down the funnel, including post-purchase, to drive repeat purchases or subscription signups. For example, whenever I visit your site, you should know if I'm a first-time visitor, a repeat customer, or a multi-time visitor who hasn't purchased. This helps personalize my experience based on where I am in the funnel.

Data collection is the second core challenge. This has been made more challenging by the third-party cookie issue, Google and Apple privacy changes, and new laws. It's crucial to collect zero-party data, which is explicitly provided by customers, versus first-party data, which is captured without their knowledge. Zero-party data involves customers willingly sharing their information, such as through gamified on-site experiences like a spin-to-win game that collects email addresses for a discount. This tactic is great for explicit list growth.

Karthik: Keeping in mind the earlier point about cookies, knowing you can't use cookies to gather information is a big challenge you solve here.

Noah: Exactly. Without a solution like Digioh, it's impossible to know who I am. You need technology to enable identification. Data collection is essential, especially with privacy changes. Capturing zero-party data is more crucial than ever. Gamified on-site experiences help with this.

Imagine if you could target a customer who has purchased four times in the last four months with a subscription offer to save money and avoid repurchasing. Now, you've got their recurring revenue, and they're happier because they saved money and became more loyal.

Karthik: That's a fantastic example. Do you have any other tactics for capturing zero-party data?

Noah: Yes, there's more to discuss on that, but I want to pause here. Any thoughts or questions, Karthik?

Karthik: Yeah, the last point you made was really interesting. If I've purchased four products in four months from your website and the DTC brand identifies me as a repeat purchaser, there's a lot of loyalty and recall factor happening from the customer angle. It's a smart move because the customer saves money and it’s convenient for them. You’re winning the battle against your competition by showing you truly care for your customers through zero-party data.

Imagine collecting all these customers' behaviors, their four-month purchases, and then funneling them into a subscription with a discount. That's what smart DTC brands should do. If they aren’t, they’re missing out on building loyalty. Loyalty works both ways; it’s about brands being loyal to their customers too. And tools like Digioh can help streamline this process.

Noah: Exactly, and that's a big misconception. It sounds complex, but in theory, it’s not. We’re just looking at your email service provider (ESP) data, like Klaviyo or Yotpo, and your Shopify or eCommerce platform data. We marry those two data sets to know where you are in the funnel and then target based on that. Many brands get intimidated, thinking this will be a long project, but a platform like Digioh can set it up in weeks.

Karthik: Right. And I know you don't want to make this a Digioh pitch, but we did talk about the lack of awareness among DTC brands and founders. From their perspective, they’ve got a lot on their plate. They need to reduce CAC, increase LTV, and push sales via emails and SMS. When you tell them they can do it smartly, they might get overwhelmed, worried about data gathering and legal issues. This perception needs to be broken down. It’s simple and smart; they just have to play by the rules.

Noah: Exactly. It’s simpler than most brands believe. If you're working with a platform like Digioh, we do the heavy lifting. We're activating data you already capture, not adding bad email addresses or harming deliverability. We're using explicit opt-ins and the data collected after that to personalize the entire customer journey.

Another way to do this is through guided selling experiences, like a quiz on your site. This can ask about preferences, product knowledge, similar brands, flavor preferences, or t-shirt sizes, depending on the vertical. The data collected is used to drive conversions on-site and through retargeting if done right.

Utilization is key here. For example, a quiz completion can immediately offer product recommendations on-site, leading to higher conversion rates. But smart brands use this data to enrich email and SMS targeting as well. If I take a quiz and don’t purchase, the brand still has valuable data to retarget me. An email saying, "Hey, Noah, great job on the quiz! These items would be perfect for you," can be as effective as a browse abandonment email. It’s a win-win because the brand provides the best products, and the consumer feels confident.

You can further enrich other prominent flows with this data. A personalized welcome series based on quiz data makes the customer journey more engaging. It’s about driving on-site conversions and leveraging data across the entire customer journey and channels.

Karthik: Yeah, the stat you mentioned about someone who completes a quiz being three times more likely to make a purchase is fascinating. It opens a Pandora's box for brands, providing endless possibilities for using that data. Not just for retargeting or browse abandonment, but also in welcome flows. The platform is open to creative and thoughtful uses of the data gathered from customers.

Noah: I absolutely agree. The nice thing is that with access to the data and a tool like Digioh for simple targeting and data transformation, it takes a lot of the critical thinking out of it. Once you start capturing the data, it becomes clear what you need to do.

Karthik: I noticed one of the use cases you put out: when people provide this data, you can customize forms with their names and personalized discounts. It’s about how far you’re willing to go with the data. Awesome.

Noah: Exactly. It’s all about using the data to its full potential.

Karthik: That brings us to exploring a bit more about Digioh. Can you explain how Digioh helps with data segmentation and creating personalized content? It’s a genuine fear among DTC brands about segmenting data and creating personalized flows. They might get overwhelmed. How does Digioh make this easy?

Noah: I'd love to share an example. Everything we’ve talked about can be powered by our solution, from identification to data collection and utilization. It's not just about Digioh, but the power of our integrations. With over 250 integrations, we can pass data anywhere, ingest data, and provide on-site and retention marketing experiences.

Let's walk through an example. Andie Swimwear is a luxury swimwear brand optimized to provide customers guided buying experiences. Their site captures valuable data on shoppers, driving conversions up. As you can see, Andy has their style quiz as the first option in their nav bar. This shows how important capturing data and moving customers down the funnel is for them.

Karthik: That’s very smart, having the quiz right at the top. Not many DTC brands take such bold decisions. Knowing what behavioral software can do encourages these bold moves. Please go ahead.

Noah: We're seeing more brands put their quiz in the top nav, showing how critical this data is for driving results. Andie doesn’t stop with just one quiz; they have three different quizzes throughout the funnel. First, a style guide quiz educates customers on styles they might like. Then, a mini quiz captures zero-party data with a simple question about the occasion they’re shopping for. This guides customers to a relevant collections page, enhancing the user experience and providing more data.

Karthik: That’s a terrific personalization strategy. This podcast is about scaling personalization and targeting, and this is a perfect example of how a DTC brand can do it. When a customer provides data, you can immediately match their preferences and direct them to the right page.

Noah: Exactly. We’re not just driving on-site conversions; we’re sending data back to platforms like Klaviyo in real time for follow-up emails and other campaigns. At the bottom of the funnel, Andie has a fit finder quiz for swimwear, asking questions to help find the perfect fit. This builds confidence for both the brand and the consumer.

They capture email and SMS opt-ins and zero-party data, passing it to Klaviyo, Yotpo, Postscript, or any ESP in real time. This triggers automated emails and personalized campaigns, with triggered emails achieving over a 70% click-through rate. It shows how effective retargeting can be when personalized. The data captured can be used throughout the customer's life cycle, enhancing welcome series, browse abandonment flows, and more.

Karthik: Yeah, just on that point about 70 percent click-through rate, Noah.

Noah: Yeah, a click-through rate. I think I have a stat on conversions as well.

Karthik: Yeah, when you mentioned the 70 percent click-through rate, it indicates that people who take the quiz have a clear intent. Every click signifies a behavior and intent, and that’s where you get smarter about what they’re trying to achieve. You can then extend that data to platforms like Klaviyo and retarget them meaningfully across the funnel.

Noah: Exactly. Not only does it give the brand confidence that the emails they send will likely be engaged with, but it also gives the consumer confidence. If I'm unsure about a swimsuit or any item for any reason, knowing that I've provided data to the brand helps them recommend the best fit or items for me. That’s why we're driving these results. For example, Andy saw a 55 percent increase in year-over-year revenue from their automated email flows leveraging zero-party data. They had a 71 percent click-through rate on these retargeting emails and an overall 343 percent increase in conversions. These are massive impacts from relatively simple use cases we've discussed.

Karthik: This is insane. Just by implementing a quiz, which involves a lot of creativity and effort, brands can see significant results. Imagine not implementing this quiz versus implementing it and experiencing a 55 percent increase in revenue, a 71 percent click-through rate, and a 343 percent conversion increase. It’s transformative for brands that have never tried behavioral software, customized pop-ups, or personalized websites. This is a very smart strategy.

Noah: Over time, it will become a no-brainer. Our goal at Digioh is to educate the market on why this is imperative today. Over time, we believe it will become essential for most, if not all, DTC merchants of a certain size. There’s still education to be done, and that’s on us, through initiatives like this podcast.

Karthik: Absolutely. I want to wind up this segment with a question for you. You were showing these quizzes and their impact. Do you have a library of quizzes that our viewers can use and plug into their websites?

Noah: Yes, we do. Let me share my screen again.

We have a landing page on our site with over 61 examples of quizzes we power. You can click any of these links to see how each quiz is customized to the brand. The questions, outcomes, and product recommendations are tailored specifically. You can see how pop-ups engage throughout the on-site experience. Sometimes we power those pop-ups, sometimes we don’t, but yes, we have a library of quizzes for you to explore. It’s actually fun to take some of these quizzes to understand the product and our customers better. I've even bought items I never thought I’d be interested in after taking the quiz. It's very effective.

Karthik: Yeah, very smart move there. People are interested.

Noah: You make them inquisitive with that tagline, "The best eCommerce brands grow with quizzes." Then you provide a library like Canva's design templates. It's like something intriguing that you want to explore more. You see the library and boom, you choose what you need.

Karthik: That brings me to one of the penultimate questions. It’s been a fabulous session so far, but imagine I'm the head of marketing, head of growth, or an entrepreneur starting off with four or five figures in revenue. How and where should I get started, Noah? What do you suggest?

Noah: The first thing we do when you come on board with Digioh is start identifying more site traffic. If we can increase the amount of site traffic you're identifying by 5X in a matter of weeks, that’s a huge win. Then we move on to something like a pop-up to start grabbing more explicit opt-ins while working on your quiz. Each quiz is custom to the brand, so it takes a few weeks to get up and running. But we'll turn on identification immediately and start working on the rest from there.

Karthik: Absolutely. Each quiz and brand is different. Just because Andy Swim did something doesn't mean it's an apples-to-apples comparison. That’s where Digioh's expertise comes in. You’ve seen about 2,200 DTC brands now, right?

Noah: Yes, 2,200 DTC brands. That’s a great point, Karthik. We need guidelines and brand assets to plug into the quiz. From there, it’s hands-off for the brand, and our team does all the work. We build the quiz, help with targeting, email flows, and triggers, and provide guidance every step of the way. It's a low lift for brands, but it does take a few weeks to do it right.

Karthik: It’s not an immediate result; you need to think it through. I uncovered a golden nugget in how you operate. It’s not just the tool but the personalized walkthrough your team provides. Understanding the brand and their challenges, implementing the quiz, and helping them see results. That combination of smart software and smart people is unbeatable. Many companies, like Luke, do a similar walkthrough to ensure DTC brands are comfortable.

Noah: I appreciate the kind words. The power of Digioh lies in seamlessly plugging into the rest of the stack, similar to our agency partners. When brands are connected with an agency, they tend to have outsized results because agencies have knowledge from all their merchants. I'm excited to continue partnering with agencies, especially in the Shopify ecosystem, to drive significant results from the tech stack.

Karthik: Absolutely. We’re almost out of time, but thank you so much. I enjoyed this. We had too much fun.

Noah: We did have too much fun!

Karthik: Just one last question, where can people find you?

Noah: Digioh is very easy to find at digioh.com, D-I-G-I-O-H.com. I'm very active on LinkedIn. It’s Noah Rahimzadeh. You can find me through Digioh's LinkedIn profile as well. I’d love to connect with any listeners, chat more about how this might fit their needs, or just connect with people in the DTC space. Always a pleasure. So hit me up if you want to chat.

Karthik: Absolutely. Thank you so much.

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