Nearly two thirds (64%) of retailers consider personalization a top-three priority within their business strategies, but only 15% admit to being fully implemented, according to a study from Periscope by McKinsey conducted at the 2017 World Retail Congress.
Many retailers are hurrying to close this gap: 43% of surveyed retailers said personalization efforts and initiatives are on their roadmaps for 2017-18, citing a range of reasons:
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46% see personalization as a way to provide a more customer-centric approach;
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36% say it is necessary to keep up with changing consumer expectations and demands; and
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10% believe it will play a key role in helping them use their marketing budget more efficiently.
Personalization Boosts The Bottom Line
A recent Evergage study revealed that 88% of marketers say they see a measurable sales lift from personalization, and the Periscope report likewise shows that increased personalization can generate additional revenue streams.
When asked how they would rate the impact of “personalized” versus mass promotion in creating the potential for additional revenue streams, 15% of retailers said that they saw a 100%-300% increase, especially with regard to new customer conversions. Another 41% of respondents stated that they experienced a high impact (50%-100%) to their revenue streams, especially in cross-sell conversions.
Personalization has an impact on customer visits to a web site as well:
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80% of respondents felt that switching to personalized promotions was having a direct impact on the volume of customer visits they were receiving compared to the previous year;
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59% said they saw a 25%-50% increase in customer visits; and
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21% saw their customer visits double.
CMS Necessary For Optimal Personalization Delivery
When it comes to delivering personalized marketing campaigns, 67% of respondents said they relied on their content management system as the most important piece of technology to manage creative assets and copy. The CMS was followed by automated campaign management systems (56%) to trigger retargeting, email campaigns, targeted promotions and “next best action” analysis, followed by a distribution platform (53%) for pushing out notifications, emails and other communications.
