7 Things to Know about the Future of Personalized Marketing
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.
- 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.
- 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.
- 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.
- The greatest performance impact of personalization will be felt in sales associate enablement of customer information on mobile devices and direct in-store offers.
- When personalization strategy is fully implemented the median increase in in-store basket size will be 16.8%.
- When a unified personalization strategy is fully implemented across channels the expected overall sales increase will be 5.6%.
- Today, 85% of retailers believe they must have a unified personalization strategy in place but only 23% actually have one now.
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.