Fourth annual survey reveals half of retailers that personalize across the entire customer lifecycle earn 300% ROI or more
Kibo announced the results of their fourth annual Personalization Study, which compared multichannel personalization return on investment across shopping and marketing customer touchpoints. The survey found that brands that offer “personalized commerce” are more likely to achieve the highest ROI. These retailers are also in the best position to quickly pivot the business to meet changing customer behaviors and deliver personalized messaging to accompany.
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Personalized commerce is a three-part personalization strategy that drives the highest return.
- 70% retailers that used advanced personalization achieved ROI of 200% or more.
- Retailers that personalize across as many touchpoints as possible across marketing and shopping channels are more likely to achieve 300% ROI or more.
- Retailers with a marketing-led cross channel personalization strategy are most likely to earn ROI of 400% or more.
“Personalized commerce prioritizes a one-to-one customer experience across every touchpoint including shopping, fulfillment and marketing channels. This research shows a holistic personalized commerce approach earns retailers significantly higher ROI than personalization in only marketing or only shopping channels,” said Lisa Kalscheur, CMO at Kibo. “The good news is that overall we are seeing more personalization, and more advanced personalization strategies, which is a sign that many more retailers will reach higher ROI in the near term.”
Additional findings from Kibo’s Personalization Study include the following:
- Advanced personalization use is now common throughout most marketing channels, with the 75% of marketers using it across mobile app, on-site and in-store channels.
- 56% of retailers selected Personalized Messaging as the tactic that yielded the highest ROI.
- 34% of North American retailers cited increasing AOV/sales as their top goal.
- The top goal for the EMEA retailers was increasing customer lifetime value, at only 20%, indicating a wide range of goals being used.
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“As retailers navigate through an uncertain climate in 2020, it’s important to map a strategy for maximizing customer experience and revenue, especially as we move closer to the important Q4 holiday season. This research provides retailers with a roadmap for improving their personalization efforts across many parts of the ever-changing customer journey, increasing the chance for positive returns in the process,” explains Kalscheur.
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