Digital Marketing Services - Data and Personalization

Goals

To have a broad understanding of how customer data and personalization is driving digital marketing for services in the United States. An ideal response would include industry research and/or case studies of how brands use customer data and personalization for their digital marketing campaigns.

Early Findings

  • According to data from McKinsey, "personalization will be the prime driver of marketing success within five years." Today’s personalization leaders have found proven ways to drive 5 to 15 percent increases in revenue and 10 to 30 percent increases in marketing-spend efficiency, predominantly by deploying product recommendations and triggered communications within singular channels.
  • Optimizing the customer experience has been deemed one of the most exciting opportunities that marketers have. However, research from Ascend2 reveals that improving the customer experience (CX) is also one of the most critical challenges to the success of a data-driven personalization strategy.
  • Marketers are utilizing various types of customer data for personalization. More than half (55%) of the respondents to Ascend2’s survey say that one of the most important types of data they use for personalization is website activity. Another 47% of respondents say they use transaction activity, while 37% say that one of the most important types of marketing data they use is campaign activity. Respondents also say they use demographic information (32%), names (26%), company/employment (24%) and title or purchasing roles (19%).
  • Personalization is becoming more prominent in digital marketing, offering an improved user experience by providing information or targeting ads based on an individual’s activities and interests. In fact, according to a new report from SmarterHQ, 72% of consumers say they now only engage with marketing messages that personalized and tailored to their interests.
  • Amazon is the most trusted retailer when it comes to customer data, with 48% of consumers saying it is the brand or industry they trust most to use their data responsibly. Among Gen Z and Millennials, this trust for Amazon is even greater, with consumers trusting the retail giant 2.1 times more than their banks.
  • Ninety percent of consumers are willing to share their behavioral data with brands if it means a cheaper and easier shopping experience, so the drive for personalization is there.
  • When it comes to the reasons that consumers share their data, the most popular reason is to receive discounts on products, with 90% of respondents selecting this reason. This could be the form of an email sign-up, with many e-commerce sites offering an immediate discount in return for a newsletter sign-up.

Summary Of Our Early Findings Relevant To The Goals

  • Our initial hour of research provided some industry research in the form of surveys and thought leader data surrounding how customer data and personalization is driving digital marketing. We also did a scan to ensure that there were publicly available case study examples of brands that use customer data and personalization for their digital marketing campaigns.
  • We focused on the United States, but we did notice some interesting data from the UK, as well. If expansion to the UK would be of interest, that would clearly have to be communicated in any reply. We would still prioritize the United States, though.
  • Please check this box if we should proceed with this research.

Proposed next steps:

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