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Personalization in Marketing: Benefits, Strategy, Examples and More

Discover how personalization in marketing improves customer engagement and drives sales. Learn strategies, benefits, and real-world examples in our guide.
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Published on
July 5, 2024

Introduction to Personalized Marketing

                                                                 Marketing Personalization
Introduction to Personalized Marketing

Personalized marketing is Changing  the way businesses engage with their customers. By leveraging customer data, companies can deliver tailored experiences that resonate with individual preferences and behaviors. This approach, known as personalization, has proven to be highly effective.

According to Epsilon, 80% of consumers are more likely to make a purchase when brands offer personalized experiences. Furthermore, personalized marketing strategies can significantly boost customer satisfaction and loyalty. Salesforce reports that personalized email marketing generates 20% more revenue than non-personalized campaigns. A successful personalized marketing strategy involves using a personalized solution to create personalized offerings that meet specific customer needs.

Companies like Amazon and Netflix exemplify the power of personalization strategy examples, showcasing how personalized marketing can drive engagement and sales.

Understanding the types of personalization and how to personalize marketing efforts is crucial for businesses looking to stay competitive. Personalized marketing strategies, including personalized information and content, not only enhance the customer experience but also provide a substantial competitive advantage. As the market continues to evolve, the importance of personalized marketing cannot be overstated. By adopting these practices, businesses can ensure they meet and exceed customer expectations.

What is Personalization in the Market?

                                                      What is Personalization in the Market?
What is Personalization in the Market?

In marketing, personalisation is the process of creating customised messages, offers, and interactions for each individual client by taking into account their preferences, actions, and information.

This strategy leverages personalized marketing techniques to enhance customer engagement and satisfaction.

With the increasing availability of customer data, businesses can now create highly personalized experiences that resonate with their target audience.

Benefits of Personalization in Marketing

                                                            Benefits of Personalization in Marketing
Benefits of Personalization in Marketing

Personalization in marketing offers numerous benefits that can significantly impact a business's success.

By utilizing personalized marketing strategies and leveraging customer and data analytics.

Companies can make digital ad buyers create more meaningful interactions with their customers.

Here are some key benefits of personalized marketing:

1. Enhanced Customer Engagement

Personalized marketing leads to enhanced customer engagement by providing relevant and timely content.

When the customers expect to receive personalized marketing important information that resonates with their preferences, they are more likely to interact with the brand.

  • Increased Interaction: According to HubSpot, personalized calls to action perform 202% better than generic ones.
  • Deeper Connections: Personalization helps build deeper connections with customers by addressing their specific needs and interests.

2. Increased Conversion Rates

Personalized marketing strategies can significantly boost conversion rates.

By using personalized marketing impact tailoring marketing efforts to individual preferences, businesses can more effectively guide potential customers through the purchase journey.

  • Higher Sales: Epsilon reports that personalized emails generate six times higher transaction rates than non-personalized ones.
  • Better Targeting: Using personalized marketing solutions helps in targeting the right audience with the right message, leading to higher conversion rates.

3. Improved Customer Satisfaction and Retention

A successful personalized marketing strategy not only attracts customers but also keeps them coming back.

Satisfied customers are more likely to become more loyal customers, repeat buyers.

  • Enhanced Experience: Salesforce found that 57% of consumers are willing to share personal data in exchange for personalized offers or discounts.
  • Loyalty Programs: Personalization in loyalty programs increases customer satisfaction and retention by rewarding customers based on their unique preferences and behaviors.

4. Optimized Marketing Spend

Personalized marketing helps optimize marketing spend by ensuring resources are allocated more efficiently.

Businesses can focus their efforts on high-value customers who are more likely to convert.

  • Cost Efficiency: Gartner states that brands that invest in personalized marketing solutions can reduce acquisition costs by up to 50%.
  • Better ROI: Personalization leads to a better return on investment by increasing the effectiveness of marketing campaigns.

5. Cross-Selling and Up-Selling Opportunities

Personalized marketing strategies create excellent opportunities for cross-selling and up-selling.

By the marketing team recommending products based on the customer's experience, preferences and purchase history.

  • Increased Revenue: According to McKinsey, personalized product recommendations can drive 10-30% of revenue.
  • Better Customer Fit: By leveraging customer data, businesses can suggest products that better fit the customer’s needs, increasing the likelihood of additional purchases.

6. Manage Customer Data

Effective personalization relies on managing and analyzing customer data.

Understanding customer behavior and preferences is essential for both the personalized shopping experience and personalized customer experience, and marketing impact delivering tailored and personalized experiences is.

  • Data Utilization: Salesforce reports that 57% of consumers are willing to share personal data in exchange for personalized offers and discounts.
  • Enhanced Insights: Using a customer data platform (CDP) helps in gathering and analyzing data to create personalized marketing strategies.

7. Adaptation to Customer Lifecycle

Personalized marketing adapts to the different stages of the customer lifecycle, ensuring relevant and personalized interactions at each phase.

  • Lifecycle Marketing: Companies using personalized lifecycle marketing strategies can achieve 30% higher customer lifetime value (CLV), according to Forrester.
  • Tailored Messaging: By delivering the right message at the right time, businesses can nurture relationships and guide customers through their lifecycle effectively.

8. Competitive Advantage

Implementing a successful personalized marketing strategy can provide a significant competitive advantage.

Businesses that excel in personalization stand out in a crowded market.

  • Brand Loyalty: Accenture found that 91% of consumers are more likely to shop with brands that provide relevant offers and recommendations.
  • Market Differentiation: Personalized marketing helps differentiate brands by creating unique, memorable experiences that competitors cannot easily replicate.

Steps to Create a Successful Personalized Marketing Strategy

                                      Steps to Create a Successful Marketing Personalization strategies
Steps to Create a Successful Personalized Marketing Strategy

Creating a successful personalized marketing strategy involves a series of well-defined steps.

By focusing on these steps, businesses can ensure their personalized marketing efforts are effective and yield significant results.

Here’s a comprehensive guide to help you get started:

1. Define Your Goals

The first step in any marketing strategy is to define clear and measurable goals.

Without specific objectives, it’s challenging to determine the success of your personalized marketing efforts.

  • Set Specific Targets: Identify what you want to achieve with your personalized marketing strategy. This could be increasing customer engagement, improving conversion rates, or boosting customer satisfaction.
  • Measure Success: Use key performance indicators (KPIs) to measure the success of your efforts. For instance, track metrics like open rates, click-through rates, and sales conversions.

2. Understand Your Audience

To personalize your marketing effectively, you need to understand your audience deeply.

Knowing your customers’ preferences, behaviors, and needs is crucial for delivering relevant content.

  • Customer Segmentation: Divide your audience into specific customer segments based on demographics, purchase history, and behavior. This allows you to tailor your messages more precisely.
  • Customer Data Utilization: Leverage customer data to gain insights into your audience. According to Salesforce, 57% of consumers are willing to share personal data in exchange for personalized offers and discounts.

3. Collect and Analyze Data

Data is the backbone of any personalized marketing strategy.

Collecting and analyzing customer data enables you to create more accurate and effective personalized marketing strategies.

Customer Data Platforms (CDPs): Use CDPs to gather data from various sources, providing a comprehensive view of your customers to create personalized experiences.

  • Behavioral Data Analysis: Analyze behavioral data to understand how customers interact with your brand. This can inform your personalized marketing efforts and improve targeting accuracy.
  • Data-Driven Decisions: Make decisions based on data analysis to enhance the effectiveness of your personalization marketing strategy.

Forrester reports that data-driven marketing strategies can improve customer retention by 10-20%.

4. Develop Personalized Content

Creating personalized content is at the heart of any successful personalized marketing strategy.

Tailored content resonates more with customers and drives higher engagement.

Tailored Messaging: Develop personalized messages that address the specific needs and preferences of different customer segments.

This could include personalized emails, product recommendations, and custom video messages.

  • Content Relevance: Ensure your content is relevant to your audience. According to HubSpot, personalized calls to action perform 202% better than generic ones.
  • Dynamic Content: Use dynamic content that changes based on user data and behavior, providing a more personalized experience.

5. Choose the Right Channels

Choosing the right channels to deliver your personalized content is crucial for reaching your audience effectively.

Different channels and social media networks can offer varying levels of personalization and engagement.

Utilize personalized email marketing to reach customers directly.

Personalized emails have been shown to generate six times higher transaction rates than non-personalized ones (Epsilon).

  • Social Media: Leverage social media platforms to deliver personalized marketing messages. Social media marketing allows for real-time interaction and engagement.
  • Website Personalization: Implement personalized solutions on your website to enhance user experience. This can include personalized landing pages and product recommendations based on browsing history.

6. Implement Marketing Automation

Marketing automation plays a vital role in scaling your personalized marketing efforts.

By automating repetitive tasks, you can focus on creating more meaningful interactions with your customers.

  • Efficiency and Consistency: Automation tools help deliver personalized content consistently and efficiently across various channels.
  • Segmentation and Targeting: Use automation to segment your audience and send targeted messages based on customer data and behavior to increase customer satisfaction.
  • Personalized Campaigns: Automate personalized marketing campaigns, such as personalized emails and retargeting ads, to maintain continuous engagement with your audience.

According to HubSpot, 63% of companies outgrowing their competitors use marketing automation.

7. Test and Optimize

Testing and optimizing your personalized marketing strategies are essential to ensure their effectiveness.

Regularly analyze the performance of your campaigns and make necessary adjustments.

  • A/B Testing: Conduct A/B tests to compare different versions of your personalized content and identify what resonates best with your audience.
  • Performance Metrics: Monitor key metrics such as open rates, click-through rates, and conversion rates to gauge the success of your personalized marketing strategy.
  • Continuous Improvement: Use insights from testing to refine and optimize your personalized marketing efforts.

According to Adobe, companies that optimize their marketing efforts can see up to 30% more effective campaigns.

8. Maintain Data Privacy and Compliance

With the increasing focus on data privacy, maintaining compliance with data protection regulations is crucial.

Ensuring data privacy builds trust with your customers and protects your brand reputation.

  • Regulatory Compliance: Adhere to regulations such as GDPR and CCPA to ensure your personalized marketing strategies comply with data protection laws.
  • Transparent Data Practices: Be transparent about how you collect, use, and store customer data. According to Deloitte, 91% of consumers value transparency from businesses.
  • Secure Data Handling: Implement robust data security measures to protect customer data from breaches and misuse.

9. Continuously Improve

The landscape of personalized marketing is constantly evolving.

To stay ahead, continuously improve your personalized marketing strategies by staying updated with the latest trends and technologies.

  • Stay Informed: Keep up with the latest developments in personalized marketing to adapt your strategies accordingly. According to Forrester, 89% of digital businesses are investing in personalization.
  • Customer Feedback: Regularly gather and analyze customer feedback to understand their preferences and expectations better.
  • Innovate: Experiment with new personalized solutions and technologies to enhance your marketing efforts and provide better customer experiences.

10 Examples of Personalized Marketing Campaigns

Personalized marketing campaigns have become a cornerstone for brands looking to engage customers on a deeper level.

Here are ten examples that showcase successful personalized marketing strategies.

1. Amazon Product Recommendations

                                                    Amazon Product Recommendations
Amazon Product Recommendations

Amazon uses personalized marketing by leveraging customer data by  customer relationship management software, to recommend products based on browsing history, purchase behavior, and preferences.

  • Increased Sales: According to McKinsey, 35% of what consumers purchase on Amazon comes from product recommendations.
  • Customer Retention: Personalized recommendations help in retaining customers by continually suggesting relevant products.

2. Spotify Wrapped

                                                              Spotify Wrapped
Spotify Wrapped

Spotify’s Wrapped campaign provides users with personalized insights into their listening habits over the past year.

  • Engagement Boost: The campaign generates high levels of user engagement, with millions sharing their Wrapped results on social media.
  • User Loyalty: Spotify Wrapped enhances user loyalty by offering a personalized reflection of their music preferences.

3. Netflix Personalized Watch Lists

                                                 Netflix Personalized Recommendations
Netflix Personalized Watch Lists

Netflix uses algorithms to create personalized watch lists for users, recommending shows and movies based on viewing history and preferences.

  • User Satisfaction: According to Netflix, personalized recommendations account for over 80% of the content watched on the platform.
  • Reduced Churn: It measure personalized marketing efforts  which help in reducing churn by keeping users engaged with relevant content.

4. Coca-Cola “Share a Coke” Campaign

                                                     Coca-Cola “Share a Coke” Campaign
Coca-Cola “Share a Coke” Campaign

Coca-Cola’s “Share a Coke” marketing campaign replaced the brand’s logo with popular names on bottles, creating a personalized connection with consumers.

  • Increased Sales: The campaign led to a 2% increase in U.S. sales, according to Coca-Cola.
  • Social Media Buzz: The personalization solution aspect of the campaign generated significant social media buzz, encouraging users to share photos of their personalized bottles.

5. Nike By You Custom Shoes

                                                                   Nike By You Custom Shoes
Nike By You Custom Shoes

Nike allows customers to personalize their shoes through the Nike By You program, offering a unique product tailored to individual tastes.

  • Enhanced Customer Experience: Personalized products lead to higher customer satisfaction and brand loyalty.
  • Increased Revenue: According to Nike, their customization options have significantly contributed to their direct-to-consumer revenue growth.

6. Starbucks Personalized Rewards Program

                                                   Starbucks Offer Personalization
Starbucks Personalized Rewards Program

Starbucks leverages customer data to offer personalized rewards through its loyalty program, enhancing the customer experience.

  • Increased Loyalty: Starbucks' loyalty program boasts 16.8 million active members in the U.S., each receiving personalized offers based on their purchase history.
  • Higher Spending: Members of the program tend to spend more, with personalized rewards driving repeat purchases.

7. Sephora Personalized Beauty Profiles

                                                Sephora Personalized Beauty Profiles
Sephora Personalized Beauty Profiles

Sephora uses personalized beauty profiles to recommend products tailored to individual customer preferences and beauty routines.

  • Enhanced Customer Experience: Customers receive personalized product recommendations and beauty tips, increasing satisfaction.
  • Increased Sales: Personalized marketing efforts have contributed to Sephora’s strong sales growth, with personalized emails generating higher open and click-through rates.

8. Spotify Discover Weekly

Spotify’s Discover Weekly feature creates a personalized playlist for each user based on their listening habits and preferences.

  • User Engagement: This personalized offering has led to over 2.3 billion hours of music being streamed from Discover Weekly playlists.
  • Retention: Personalized music recommendations keep users engaged and coming back to the platform.

9. Amazon Prime Personalized Deals

                                                       Amazon Prime Personalized Deals
Amazon Prime Personalized Deals

Amazon Prime members receive personalized deals and recommendations based on their shopping behavior and preferences.

  • Customer Retention: Personalized deals enhance the value of Prime membership, contributing to high retention rates.
  • Increased Spending: Personalized marketing strategies, such as targeted deals, encourage more frequent purchases from Prime members.

10. Airbnb Customized Travel Recommendations

                                                                         Airbnb Customized Travel Recommendations
Airbnb Customized Travel Recommendations

Airbnb uses customer data to provide customized travel recommendations, improving the user experience.

  • Enhanced Booking Experience: Personalized recommendations help users find accommodations that match their preferences, increasing booking satisfaction.
  • Higher Engagement: Personalized emails and notifications keep users engaged and inspire future travel plans.

Types of Personalized Marketing Strategies with Statistics 

                                                    Types of Personalized Marketing
Types of Personalized Marketing Strategies with Statistics 

Personalized marketing strategies are essential for businesses looking to connect with their audience on a deeper level.

By utilizing various types of personalization, companies can enhance customer engagement, drive sales, and improve overall satisfaction.

Here are two key types of personalized marketing strategies, supported by relevant statistics.

1.  Social Media Marketing

Social media platforms offer excellent opportunities for personalized marketing.

By leveraging customer and data analytics, brands can create tailored content for specific customers interests and create personalized campaigns to personalize messaging that resonates with their audience.

  • Targeted Ads: Personalized social media ads can significantly increase engagement and conversion rates. According to eMarketer, personalized social media ads have a 30% higher click-through rate than non-personalized ads.
  • Content Customization: Brands can personalize content based on user preferences and behaviors. This approach increases user interaction and brand loyalty.

2. Custom Video Messages

Custom video messages are an effective way to engage customers on a personal level.

These videos can be tailored to individual customers, addressing their specific needs and preferences.

  • Higher Engagement: According to HubSpot, personalized video messages can increase email click-through rates by up to 300%.
  • Improved Conversion Rates: Custom videos create a more engaging experience, leading to higher conversion rates.
  • Vidyard reports that personalized video marketing campaigns can boost conversion rates by up to 10 times.

3. Behavioral Targeting

Behavioral targeting uses third-party data about a customer's past behavior to deliver personalized marketing messages.

This account based marketing strategy for customer relationship management helps in the personalization of customer relationship management addressing the specific needs and interests of customers.

  • Increased Relevance: Behavioral targeting ensures that marketing messages are more relevant to the recipient. A study by Invesp shows that behavioral targeting can increase conversion rates by 25%.
  • Enhanced Customer Experience: Personalized marketing efforts based on behavioral data improve the customer experience, leading to higher satisfaction and loyalty.

4. Product Recommendations

Product recommendations are a powerful personalized marketing strategy used by e-commerce platforms to suggest products based on a customer's past purchases and browsing history.

  • Increased Sales: Amazon reports that 35% of its sales come from personalized product recommendations.
  • Customer Retention: Personalized recommendations help in retaining customers by continually suggesting relevant products, thereby enhancing the shopping experience.

5. Email Personalization

Email personalization involves tailoring email content to individual recipients based on their preferences, behaviors, and demographics.

This strategy can significantly enhance the effectiveness of email marketing campaigns and targeted emails.

  • Higher Open Rates: Personalized emails have higher open rates. According to Campaign Monitor, emails with personalized subject lines are 26% more likely to be opened.
  • Better Engagement: Personalization in emails leads to better engagement. Experian reports that personalized emails generate six times higher transaction rates compared to non-personalized emails.

6 Best Marketing Personalization Tools

In the digital marketing, leveraging personalized marketing strategies is crucial for engaging customers and driving conversions.

Here are five of the best marketing personalization tools that can help businesses achieve a successful personalized marketing personalization strategy:

1. HubSpot

HubSpot is a comprehensive marketing automation platform that offers a wide range of tools for personalized marketing.

  • Customer Data Integration: HubSpot integrates customer data from various sources, providing a unified view of each customer. This enables businesses to create personalized marketing strategies based on detailed customer profiles.
  • Personalized Emails: HubSpot's email marketing tool allows for highly personalized email campaigns. According to HubSpot, personalized emails can improve click-through rates by 14% and conversion rates by 10%.

HubSpot supports dynamic content, enabling marketers to personalize website content for different visitors based on their behavior and preferences.

2. Segment

Segment is a customer data platform (CDP) that helps businesses collect, clean, and activate customer data across various channels.

  • Data Centralization: Segment centralizes customer data from multiple sources, providing a single source of truth for customer information. This data can be used to create personalized marketing strategies.
  • Behavioral Data Analysis: Segment allows businesses to analyze behavioral data to understand customer actions and preferences, enabling more targeted marketing efforts.

Segment integrates with over 300 marketing tools, making it easy to use customer data to personalize marketing campaigns across different platforms.

3. Marketo

Marketo, part of Adobe Experience Cloud, is a powerful marketing automation tool that excels in more personalized marketing experiences.

  • Advanced Segmentation: Marketo offers advanced segmentation capabilities, allowing businesses to create highly targeted customer segments for personalized marketing campaigns.
  • Personalized Campaigns: Marketo enables the creation of personalized campaigns across email, social media, and other channels. According to Forrester, Marketo users see an average 23% increase in revenue.

Marketo's lead scoring feature helps businesses prioritize leads based on their behavior and engagement, enabling more effective personalized marketing strategies.

4. Salesforce Marketing Cloud

Salesforce Marketing Cloud is a robust platform that provides tools for creating and managing personalized marketing campaigns.

  • Customer Journey Mapping: Salesforce allows businesses to map out detailed customer journeys, personalizing interactions at each touchpoint. This leads to a more cohesive and engaging customer experience.
  • AI-Powered Personalization: Salesforce Einstein, the AI component of Salesforce Marketing Cloud, provides predictive insights and recommendations, enhancing personalized marketing efforts.

Salesforce offers comprehensive analytics and reporting tools.

It enables businesses to measure the success of their personalized marketing strategies and make data-driven decisions.

4. Optimizely

Optimizely is an experimentation and the next personalization platform solution and platform that helps businesses optimize their digital experiences through A/B testing and personalization.

  • Experimentation: Optimizely allows businesses to run experiments to determine the most effective personalized marketing strategies.
  • This data-driven approach ensures that personalization efforts are based on concrete results.
  • Personalization Engine: Optimizely's personalization engine uses customer data to deliver personalized experiences across websites, mobile apps, and other digital channels.
  • Increased Engagement: Companies using Optimizely have reported up to a 30% increase in engagement by implementing personalized marketing strategies based on experimental data.

6. Adobe Experience Cloud

Adobe Experience Cloud is designed to help businesses provide personalized customer experiences.

Data-driven insights and comprehensive marketing tools help you grow.

  • Customer Data Platform: Adobe's CDP aggregates data from multiple sources, providing a holistic view of customer interactions.
  • Personalized Content Delivery: The platform enables the creation and delivery of personalized content across various channels, ensuring consistent and relevant customer engagement.
  • Real-Time Personalization: Adobe Experience Cloud supports real-time personalization, allowing businesses to adapt their marketing messages based on current customer behaviors and preferences.

Mistake To Avoid During Strategizing Personalization In Market

                                 Mistake To Avoid During Strategizing Market Personalization
Mistake To Avoid During Strategizing Personalization In Market

Personalized marketing strategies can significantly enhance customer engagement and drive business growth.

However, there are several common mistakes that can undermine these efforts.

Here are the key pitfalls to avoid when developing a successful personalized marketing strategy:

1. Ignoring Data Privacy

One of the most critical mistakes in personalized marketing is neglecting data privacy.

With increasing regulations such as GDPR and CCPA, it's essential to handle customer data responsibly.

  • Compliance Issues: Ignoring data privacy can lead to legal repercussions and damage to your brand's reputation. According to Deloitte, 91% of consumers value transparency and expect brands to protect their personal information.
  • Customer Trust: Failing to prioritize data privacy can erode customer trust. Businesses must ensure they are transparent about how they collect, store, and use customer data.

2. Over-Personalization

While personalization is crucial, over-personalizing can backfire.

Customers may find overly personalized content intrusive and uncomfortable.

  • Customer Discomfort: Over-personalization can lead to customers feeling surveilled. According to Gartner, 38% of consumers will stop doing business with a company if they find personalization efforts too creepy.
  • Balance: Strike a balance between personalized and general content to avoid overwhelming your audience. Use customer data wisely to provide value without crossing privacy boundaries.

3. Lack of Data Integration

Effective personalized marketing strategies rely on integrating data from various sources.

A lack of data integration can lead to disjointed and ineffective campaigns.

  • Fragmented Data: Without integrated data, you can't get a complete view of your customer. This fragmentation can lead to inconsistent messaging and missed opportunities.
  • Unified View: Use customer data platforms (CDPs) to integrate data from multiple sources, providing a comprehensive view of your customers.

According to Salesforce, companies using integrated data are 23 times more likely to acquire new customers.

4. Insufficient Segmentation

Personalized marketing requires precise customer segmentation.

Insufficient segmentation can result in generic advertising and messaging that fails to resonate with your audience.

  • Generic Messaging: Broad segmentation leads to less effective campaigns. Personalized marketing strategies should cater to specific customer segments based on detailed data analysis.
  • Detailed Segmentation: Use advanced segmentation techniques to divide your audience into specific customer segments. This ensures your personalized marketing efforts are relevant and impactful.

5. Neglecting Mobile Optimization

With all the data points on rise of mobile usage, neglecting mobile optimization in your personalized marketing strategy can be a significant oversight.

  • Mobile Usage: According to Statista, over 50% of global web traffic comes from mobile devices. Ignoring mobile optimization means missing out on a large audience.
  • Seamless Experience: Ensure your personalized marketing efforts are optimized for mobile devices. This includes responsive design, mobile-friendly emails, and personalized mobile notifications.


Implementing a successful personalized marketing strategy is essential for businesses aiming to enhance customer engagement and drive growth.

By leveraging customer data, creating personalized offerings, and utilizing effective personalized marketing strategies.

Companies can significantly improve customer satisfaction and their customer loyalty.

Avoiding common mistakes, such as ignoring data privacy and over-personalization, ensures a balanced and respectful approach.

Embracing these personalized marketing solutions not only meets customer expectations but also sets businesses apart in a competitive market, showcasing the power and potential of personalized marketing in today’s digital landscape.

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