Further evidence that Gartner was barking up the wrong tree when it predicted personalisation would be dead by 2024 comes in a new study which claims brands that prioritise practice across the entire customer lifecycle can achieve an ROI of over 400:1 from their activity.
Late last year, Gartner’s prediction was widely ridiculed, and it seems, new research from Kibo reinforces the view that personalisation is here to stay, even though many brands have yet to see the full benefits.
Kibo’s fourth annual report reveals that nearly three-quarters (70%) of companies which use advanced personalisation – that delivers multiple personalised experiences across the customer journey – achieve an ROI of 200:1 or more as a result.
However, marketers in the EMEA region remain on the back foot in implementation, with only a fifth (20%) using advanced personalisation across the entire customer lifecycle, compared to over a third (34%) of North American marketers.
A quarter (26%) of EMEA marketers are using personalisation technology only on marketing channels, and just 1 in 10 are implementing it as part of the shopping and purchase experience.
Those who offer personalised commerce are not only more likely to achieve the highest ROI, but are also the retailers that are best positioned to quickly pivot the business to changing customer behaviours.
The meltdown sparked by Covid-19 means this flexibility will be crucial, as retailers scramble to adapt to changes in shopping, fulfilment, and communications, says Kibo.
Kibo chief marketing officer Lisa Kalscheur said: “We’ve already seen a record drop in UK retail sales in March – with clothing stores in particular seeing sales slump by 34.8% in March – highlighting that now, more than ever, there is a need to deliver seamless, efficient, yet meaningful experiences to customers.”
She added that those who personalise across as many touchpoints as possible – including shopping, fulfillment and marketing channels – are more likely to achieve a higher ROI; over a third (38%) are likely to see an ROI of 400:1 or more.
Over half of retailers (56%) find that they get the most return from personalised messaging, personalised mobile app or website content (47%), and personalised product recommendations (45%).
Implementing these features allows for a wide range of flexibility giving retailers the freedom to personalise everything from location to past shopping behaviours to recent search keywords or origination channels.
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