News • 26.03.2019

Poor marketing personalization efforts means losing customers

Marketing leaders strive for one-to-one personalization, but fall short

Tailor cutting fabric and measuring tape on the table; copyright:...
Source: panthermedia.net/OlgaZakrevskaya

While most marketing leaders continue to strive for one-to-one personalization, achieving this type of tailored messaging falls short, causing most personalization efforts to fail, according to Gartner, Inc. The price of getting personalization wrong is steep. In a survey of more than 2,500 customers, more than half report they will unsubscribe from a company’s communications and 38 percent will stop doing business with a company if they find personalization efforts to be “creepy.”

“Creating personalized messages and experiences requires intimate knowledge of customer journeys, relevant content that drives action, and technology that helps deliver and measure experiences,” said Martha Mathers, managing vice president at Gartner. “Brands need to be extremely thoughtful in how they personalize their content today. Instead of utilizing every piece of customer data available, brands should focus on showing customers you can help them first, then layering in the right balance of data to boost message relevance, without making things too personal.”

Gartner research shows that the concept of providing “tailored help” to consumers offers a significant opportunity for brands to deliver tangible customer value in the forms and functionalities consumers seek. “We define ‘tailored help’ as a message or messages designed to provide valuable assistance or support while using as few data dimensions as possible to thread the very tough needle between too inaccurate on one hand and too creepy on the other,” said Brent Adamson, distinguished vice president at Gartner.

The opportunity for improvement here is tremendous — 88 percent of surveyed consumers reported not receiving “tailored help.” And using “tailored help” messaging increases the predicted impact of the commercial benefit index (e.g., brand intent, purchase, repurchase and increased cart size) by 20 percent.

To overcome barriers to effective personalization, Gartner’s 2018 State of Personalization Report encourages marketing leaders to consider the following when creating “tailored help” content:

Develop personalization skills

Staffing challenges are a major impediment to personalization efforts. In fact, 74 percent of marketing leaders report they struggle to scale their personalization efforts. To personalize effectively, marketing leaders must hire, train and develop key competencies for personalization including: the ability to understand consumers’ microbehaviors; know individual consumer preferences for trigger-based messages; produce content that can be versioned to meet a wide variety of consumer profiles and triggers; learn to mine nontraditional data and apply creativity to analytics; and share decision making with other disciplines.

Atomize your content

Sixty-five percent of marketers indicate they “feel overwhelmed by the need to create more content to support personalization.” Meanwhile, two-thirds of B2C marketers report they are expected to show results from their personalization investments in less than a year. To effectively manage expectations and deliver on objectives, marketing leaders need to create personalized content that is broken down into smaller components based on defined messages or purpose that contributes to the larger experience.

Rethink your data strategy

Data is the currency of any personalization program. However, brands find themselves balancing the need for personalized marketing messages while consumers are increasingly concerned about privacy and data usage. To overcome this challenge, brands need to rethink their data collection, notification and deployment or risk losing consumer trust and attention. Leading companies utilize their brand sites as the primary method of data collection, maintaining control over customer datasets and enabling customers to consent to usage.

Learn to walk, before you run, with technology

Despite growing pressures to show results and generate returns on personalization investments, marketing leaders need to exercise caution when investing in personalization tools — especially if they lack the data foundation or internal resources to fully leverage the solution. Building the business case and organizing customer data to support the personalization tool will take time.

Source: Gartner

related articles:

popular articles:

Thumbnail-Photo: Footwear market expected to grow rapidly
15.03.2019   #trend research #brand management

Footwear market expected to grow rapidly

Application insights, latest trends, developments, and forecasts to 2021

Global Footwear Market is expected to grow at a significant CAGR in the upcoming years as the scope and its applications are rising enormously across the globe. Footwear is a garment worn on the feet to protect and comfort against adversities of the ...

Thumbnail-Photo: The new power of the consumer
20.03.2019   #customer satisfaction #trend research

The new power of the consumer

Trend Radar Study 2019: why shoppers love product ratings

A global study on the “rating economy” shows that product ratings are growing in importance, impacting shopping behavior and brand loyalty.Customers are relying less on marketing messages, and the balance of power is shifting toward the ...

Thumbnail-Photo: Holistic POS solutions in visual communication...
12.02.2019   #digital signage #Trade fair special EuroCIS 2019

Holistic POS solutions in visual communication

Product presentation and brand presence through signage

The effective placement of products at the POS is becoming increasingly difficult today due to the broad diversity of brands and the struggle for presentation area that goes along with it. Striking POS solutions are thus all the more important. ...

Thumbnail-Photo: The Guinness Storehouse in Dublin – a powerful customer magnet...
14.03.2019   #customer satisfaction #customer relationship management

The Guinness Storehouse in Dublin – a powerful customer magnet

Brand advertising with taps, creamy whitecaps, and hashtags

Just in time for Saint Patrick's Day, we turn our attention to arguably the favorite drink of the Irish: the iconic Guinness beer. Or, more precisely, the home of the stout: the Guinness Storehouse opened its doors in 2000 right in the heart of ...

Thumbnail-Photo: Retailers ask California to preserve customer loyalty programs...
28.03.2019   #customer relationship management #data protection

Retailers ask California to preserve customer loyalty programs

New privacy law becomes applicable in January 2020

The National Retail Federation and the California Retailers Association today asked state officials to preserve popular customer loyalty programs, protect businesses from potentially ruinous financial penalties and address other provisions of a new ...

Thumbnail-Photo: U.S. prestige beauty industry sales grow six percent in 2018...
07.02.2019   #brick and mortar retail

U.S. prestige beauty industry sales grow six percent in 2018

Artisanal fragrance was the fastest growing aspect of the market

The U.S. prestige beauty industry reached 18.8 billion dollar in 2018, a six percent sales increase over 2017, according to The NPD Group. The skincare category grew by 13 percent and contributed 60 percent of the industry’s total gains; ...

Thumbnail-Photo: The new world of retail(ing)
28.01.2019   #price optimization #pricing management

The new world of retail(ing)

Effects of price discrimination and dynamic pricing

Dynamic pricing is a pricing strategy that plays an important role in retail. Instead of setting prices over a specific period of time – as is common practice in traditional price management -, dynamic pricing means prices can change on a ...

Thumbnail-Photo: DOOH displays are engaging
01.04.2019   #digital signage #Digital Out-of-Home (DOOH)

DOOH displays are engaging

Consumers to seek out more information after seeing digital signage

The majority of U.S. consumers notice out-of-home digital video displays, according to “On-Site Insights,” a new study from Edison Research. In today’s media landscape where it is increasingly challenging for brands to reach ...

Thumbnail-Photo: Digital Sales Summit in Hannover
08.01.2019   #e-commerce #digitization

Digital Sales Summit in Hannover

The E-Commerce Event

The Digital Sales Summit will be held for the first time in Hanover on 21 February.An extraordinary location and a LineUp which you have never seen before in the eCommerce industry, this is the easiest way to describe the Digital Sales Summit.In his ...

Thumbnail-Photo: 2nd World Retail Forum, Amsterdam
07.03.2019   #event #artificial intelligence

2nd World Retail Forum, Amsterdam

The latest developments in the industry

World Retail Forum is a platform for retail professionals from across the globe to come together, share experiences and learn from top industry leaders and retail gurus. ...

Supplier

Westiform GmbH & Co. KG
Westiform GmbH & Co. KG
Kinzigtalstrasse 2
77799 Ortenberg