Journey to Personalization
To identify a framework that will help structure the journey to personalization with an average industry wide ROI.
Our research on the journey to personalization and its ROI revealed insights. Here are key pieces of information we found:
Journey to Personalization
- A study by Epsilon found that 80% of customers were more likely to do business with a company if it offered well targeted, meaningful, and personalized experiences, and more customers are demanding and have come to expect personalization.
- A framework that can structure the journey to personalization for potential customers is to focus on the three key areas of: Awareness, Consideration, and Convincing that is tailored to the wants, needs, and expectations of the customer.
- During the Awareness phase, a brand will introduce themselves to potential customers. During the Consideration phase, a brand has the opportunity to inform them about their product/service and industry. During the Convincing phase, a brand has the opportunity to convince them that they are the best option to meet their wants, needs, and expectations.
- A framework that can structure the journey to personalization for existing customers is to focus on the three key areas of: Recency, Frequency, and Monetary. Recency focuses on when a customer last shopped with a brand or company, Frequency focuses on how often a customer shops, and Monetary focuses on how much a customer spends.
- When using email marketing on the personalization journey, a best practice per industry experts is to segment the customer base by utilizing behavioral tracking and other relevant data to ensure that customers understand that you care about their personal needs. According to Campaign Monitor, segmenting the customer base resulted in a 39% increases in open rates, a 28% decrease in opt-out and unsubscribe numbers, and a 24% increase in better email delivery rates, better leads, and increased revenue.
- Rewarding customer loyalty of highly engaged individuals by offering rewards, discounts and other unique benefits on the personalization journey is also considered a best practice, as 41% of sales are generated by the top 8% of customers.
- According to McKinsey, personalization can deliver five to eight times the ROI on marketing spend and can increase sales by 10% or more.
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We recommend continuing our research to now focus on: identifying 3-4 challenges that arise due to personalization to determine what the challenges are, why they are considered challenges, and 1-2 solutions that can help to overcome these challenges for a comprehensive report.
We also recommend additional research for 5-7 insights on the marketing concept of hyperpersonalization for a more in-depth report.