The 2022 Retail Personalization Index includes findings from three surveys:
- Consumer personalization survey: 5,014 consumers aged 18–84 based in the US and the UK in a split representative of the ratio of the national populations (4:1), surveyed in October 2021.
- Retailer personalization survey: 260 brands and retailers that have an online presence and are based in the US and the UK in a split representative of the ratio of the national populations (4:1), surveyed in October 2021.
- Consumer privacy survey: 1,002 consumers aged 18–84 based in the US and the UK in a 50:50 split, surveyed in December 2021.
What are the top traits of retailers that get personalization right? It seems the answer is a strong utilization of data-driven personalization and a truly integrated online and in-store experience.
A team of researchers calculated the scores of the Retail Personalization Index, which come from a checklist of 80 attributes that a retailer could implement to personalize and/or enhance a customer’s experience across site, email, mobile, other digital channels (which includes in-store, social, and traditional mail), offline, and privacy.
This year retailers were scored out of a possible 80 points. Thrive Market, the health-first membership for conscious living, and Sephora, global beauty retailer, tied for the top spot with a total score of 65.
With a combination of DTC start-ups and large brick-and-mortar companies at the forefront this year, top performers prove that every type of retailer can use the zero- and first-party data they collect to create highly successful personalization strategies that deliver more value for customers and higher returns for brands.
Email also proved to be a top performing channel for DTC and native digital brands, such as 1stDibs, Wayfair and Fashion Nova, which jumped from 69th in 2021 to 12th place in this year’s overall ranking. Ranked sixth, Fabletics scored highest in email for its advanced product filtering and curated product recommendations among many features.
“Over the past two years, brands have had to focus on short-term gains, whereas consumers have increased their expectations for meaningful personalization both online and in store,” said Jason Grunberg, general manager at Sailthru. “That means there is now a lot of work to be done in order for brands to meet these new customer expectations and see successful revenue generation at the same time. With more retailers turning to zero- and first-party data strategies to drive the future of marketing, it is more important than ever to create value-driven personalized engagement with customers to collect insights that offer continuously better experiences - and revenue opportunities - across every touchpoint.”
A study commissioned by Coresight Research and Sailthru as part of the 2022 Retail Personalization Index, found that 71% of consumers will shop more often with brands or retailers that personalize their communications. While the vast majority (98%) of retail marketers use some form of advanced personalization, many are not delivering personalized experiences that live up to consumer expectations. While 71% of retailers think they excel in personalization in marketing, only 34% of consumers agree. It is critically important for retailers to develop more value-driven personalization that encourages true consumer engagement across channels and supports zero- and first-party data collection to support personalized marketing and commerce in the future. There is ample opportunity for retail brands who rise to the challenge, as 80% of consumers noted that they would share data in exchange for deals and offers, while 70% would share data for loyalty points.
Below are the top five scoring brands in the 2022 Retail Personalization Index. For the full list click here.