Re­search Re­veals Rev­enue- Gen­er­at­ing Power of Per­son­al­iza­tion

WWD Digital Daily - - In Focus: Market Insights - BY ARTHUR ZACZKIEWICZ

Per­son­al­iza­tion pays off. Ac­cord­ing to new re­search from Har­vard Busi­ness Re­view An­a­lytic Ser­vices spon­sored by Master­card, au­thors of the re­port noted that “per­son­al­iza­tion has be­come crit­i­cal to im­prov­ing busi­ness per­for­mance.”

The re­port, “The Age of Per­son­al­iza­tion: Craft­ing a Finer Edge,” found that 25 per­cent of re­spon­dents ex­pe­ri­enced rev­enue gains via per­son­al­iza­tion tac­tics of be­tween 1 and 9 per­cent. Thir­teen per­cent had top-line gains of 10 to 25 per­cent, and 6 per­cent ex­pe­ri­enced rev­enue gains of more than 25 per­cent.

The re­searchers said 44 per­cent of re­spon­dents said “their or­ga­ni­za­tion’s top line has in­creased over the past two years specif­i­cally due to their com­pany’s abil­ity to cre­ate per­son­al­ized cus­tomer ex­pe­ri­ences.”

Su­san Gross­man, ex­ec­u­tive vice pres­i­dent of re­tail and com­merce at Master­card, said that it’s “no se­cret that tai­lor­ing your ap­proach — to deliver the most rel­e­vant prod­uct, ser­vice, or ex­pe­ri­ence to the right cus­tomer seg­ment — is good for you and your cus­tomers.”

But for com­pa­nies look­ing to re­fresh their cus­tomer en­gage­ment strate­gies, “per­son­al­iza­tion drives deeper cus­tomer re­la­tion­ships, pos­i­tive brand loy­alty and, ul­ti­mately, bet­ter fi­nan­cial re­sults,” ac­cord­ing to the re­sults of the re­port. “Based on feed­back from international, multi-in­dus­try ex­ec­u­tives, 8 in 10 re­spon­dents say per­son­al­iza­tion is im­por­tant to their or­ga­ni­za­tion’s strat­egy, and more than half say it is an im­por­tant driver of their rev­enue and their prof­its,” Gross­man said. “Even more, 81 per­cent stated per­son­al­iza­tion will sig­nif­i­cantly in­flu­ence fi­nan­cial per­for­mance in 2020.”

Gross­man said the re­port iden­ti­fied some op­por­tu­ni­ties that com­pa­nies — across sev­eral in­dus­try seg­ments — can use to “power up their per­son­al­iza­tion ef­forts.” This in­cluded us­ing the right tools and mak­ing sure mea­sure­ment and bench­mark­ing is top of mind as per­son­al­iza­tion tac­tics are deployed.

She also said com­pa­nies can “push per­son­al­iza­tion be­yond mar­ket­ing” — mean­ing us­ing per­son­al­iza­tion across var­i­ous touch­points with con­sumers, such as cus­tomer ser­vice.

More­over, Gross­man said con­sumers ex­pect more per­son­al­ized ex­pe­ri­ences with brands and com­pa­nies. She noted that 90 per­cent “of re­spon­dents in­di­cated that cus­tomers ex­pect or­ga­ni­za­tions to know their in­ter­ests and an­tic­i­pate their needs.” Us­ing the “right tools” is also needed to cull in­sights into data, which is then used to bet­ter en­able per­son­al­iza­tion.

Au­thors of the re­port also noted that not ev­ery “re­gion of the world is equally ad­vanced in its use of per­son­al­iza­tion strate­gies.”

“Over­all, sur­vey re­spon­dents in

North Amer­ica are more likely to be us­ing per­son­al­iza­tion tech­niques than their coun­ter­parts in Europe, while or­ga­ni­za­tions in both re­gions tend to use per­son­al­iza­tion more than or­ga­ni­za­tions in the Asia-Pa­cific re­gion,” re­searchers stated. “Fifty-six per­cent of North Amer­i­can or­ga­ni­za­tions en­gage in per­son­al­ized email mar­ket­ing, for ex­am­ple, ver­sus 47 per­cent of Euro­pean or­ga­ni­za­tions and 42 per­cent of Asi­aPa­cific or­ga­ni­za­tions.”

The re­port was spon­sored by Master­card and con­ducted by Har­vard Busi­ness Re­view An­a­lytic Ser­vices.

True Fit pow­ers fit­ting and per­son­al­iza­tion fea­tures for ma­jor re­tail­ers and brands, such as Levi’s.

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