Revenue Increases for Retailers with Advanced Personalization
New Research from LivecLicker and the Relevancy Group Shows Real-Time Personalization Drives the Highest Return
Liveclicker, a global provider of real-time email personalization solutions for B2C marketers released a new research report entitled The Value of Personalization Optimization for Retailers, in partnership with The Relevancy Group. The report, which shares findings of a survey with 147 retail marketers finds that while nearly 90% employ some form of personalization, few are using advanced methods. Those who are investing in Advanced Personalization Methods realize upwards of $20 revenue in return for very $1 spent, a significant improvement over basic methods. Advance personalization retailers enjoy 17% more revenue than do retailers using less sophisticated methods. In particular, retailers received the highest returns from real-time personalization tactics.
“Customers have come to expect basic personalization. To be truly compelling, retailers have started to step up their game with real-time advanced personalization, and math-based personalization using click behavior and inventory data,” said David Daniels at Relevancy Group. “Our research finds that these advanced tactics absolutely pay off in the form of real revenue for the company.”
The report finds that many retail marketers are planning to invest an appropriate amount to achieve more advanced personalization, and so it is a matter of time before more retailers reap the benefits. However, many marketers cited concerns about roadblocks that could hamper their efforts. More than a quarter (26%) have concerns about getting appropriate IT help, and another 26% are concerned with privacy around the effort.
Advanced personalization is not only a way to drive revenue with customers. It also offers retail brands a chance to differentiate from Amazon. When asked, more than half (52%) said that the primary way they differentiate from Amazon is with a more relevant and enriching customer experience.
“Great personalization is often invisible to the consumer. If a brand gets advanced personalization right, it serves to make messages more compelling, images more relevant, and shopping more intuitive,” said Kenna Hilburn, VP Account Development & Partnerships at Liveclicker. “This research proves that those efforts drive customer sales and brand differentiation, even if they can go undetected when they work best.”