Marketing Personalization Boosts Profitability
Adding personalized communication to a firm’s marketing efforts can have a positive impact on its bottom line, says a new report. In an analysis of the practices of 130 senior marketers, marketing software provider Monetate found that the element of personalization can increase loyalty, drive higher conversion rates and grow revenue compared with not personalizing the experience.
Personalization, as defined by the company’s study, enables marketers to interact with individuals at any moment, across all touch points, based on everything known about them. Monetate’s research also shows, however, that many organizations find creating personalized experiences is challenging and opt instead for segmentation strategies.
“It’s no secret that personalization pays off and that it can be challenging. Organizations that are great at testing and segmentation need to learn to think differently and build new skills,” says Lucinda Duncalfe, CEO of Monetate. “This study shows that and provides a proven roadmap for success. It is invaluable for everyone developing personalization programs. At Monetate, we’ve been working on this shift for years, so we are excited to help our clients usher in the new era in truly relationship-driven customer interaction that will enhance business results.”
In its study, Monetate compared the practices of organizations that reported exceeding revenue expectations against those that merely met or altogether missed their revenue goals. It found that 95 percent of organizations that got a return on their investment of three times or more from their personalization efforts increased profitability in 2016, compared to 77 percent and 63 percent of those that got two times and one time the return on their ROI, respectively.
More details on Monetate’s study and methodology are available here.