7 Things to Know about the Future of Personalized Marketing

Press enter to search
Close search
Open Menu

7 Things to Know about the Future of Personalized Marketing

By Joe Skorupa - 09/15/2015
9/15/15

By Joe Skorupa
 
The myopic view centered exclusively on sales KPIs, the dominant force in retail today, will be replaced by a business model that measures the profit of social influence, relevant interactions and personal relationships. These are some of the major conclusions reached in the recently released Second Annual RIS/EKN Customer Engagement Tech Trends Study, which debuted in a live presentation by the authors, EKN's Gaurav Pant and me, at the recent Engage! 2015 conference hosted by RIS News.

Here are 7 key takeaways from the study you need to know about the future of personalized marketing and long-term loyalty.
 
  1. Three quarters of retailers say they are developing a personalization strategy and it will be ready within two years. This group includes a fifth (22.5%) who say they already have it in place, another fifth (22.5%) that plan to have it within the next 12 months, and a third (32.5%) who say they will have it within two years.
  1. Today, just 18% of retailers have both a single view of their customers and a common digital content repository, the two foundational elements of a personalization strategy. Retailers that have these systems in place will be the first to experiment with new marketing techniques and learn which ones produce the highest conversion rates and engagement.
  1. Getting to this stage will not be easy and many obstacles will need to be overcome, such as limitations caused by current software/solutions and toolsets (47.5%), which head the list. Customer privacy (35%) was second and integrating data from multiple sources (32.5%) as third.
  1. The greatest performance impact of personalization will be felt in sales associate enablement of customer information on mobile devices and direct in-store offers.
  1. When personalization strategy is fully implemented the median increase in in-store basket size will be 16.8%.
  1. When a unified personalization strategy is fully implemented across channels the expected overall sales increase will be 5.6%.
  1. Today, 85% of retailers believe they must have a unified personalization strategy in place but only 23% actually have one now.
Creating memorable bonds with customers begins with good products and good prices, but these are not nearly enough when shoppers have so many options at their fingertips. Good service is also required through user-friendly technology and well-trained, well-informed associates. The final step, and the most difficult challenge to solve, is personalized marketing, the ability to reach customers on an individual basis with a relevant information stream that creates bonds and trust.
 
But there is a legitimate question many retailers are asking: Can personalized marketing truly be done and if so, is it desirable? Does Nordstrom or Best Buy or Macy’s really want to create marketing campaigns that reach large segments of their shoppers on a one-to-one basis?
 
On a one-to-one basis? No. What they want is to create personalized campaigns that can scale up to a national or large regional level. By identifying contextual factors that carry emotional weight retailers can create memorable bonds that build loyalty and lifetime value.
 
To learn more about these findings and conclusions, as well as to review a complete set of charts and insights, you can download the Second Annual RIS/EKN Customer Engagement Tech Trends Study by clicking here.

More Blog Posts In This Series

NRF 2019: Dawn of Experiential Shopping

​​​​​​​Exuberance and a superabundance of innovative technologies were defining characteristics of the just completed 2019 NRF Big Show. Here is my take on all the hottest trends, technologies and breaking news that came out of the amazing NRF Big Show!

Why Is There a Robot in My Store?

Robots are no longer science-fiction fantasies. On the contrary, they have already transformed supply chain operations and entering the store is the next logical step. For some retailers it is happening today.

Digital Transformation

Where Boots Hit the Ground for Digital Transformation

The most successful retailers today – the ones enjoying the largest revenue gains – began making substantial investments in digital transformation several years ago and are now reaping the rewards. Find out where they invested and why.