Why should you put personalization
on top of your marketing agenda?

Personalization has become the key to e-commerce success. Breaking down ROI, on personalization investment using KPI, we see that businesses with the greatest results are truly customer focused and have documented personalization strategy.

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Let’s look at the facts!

In 2018, nearly ¾ of businesses that exceed revenue expectation have a dedicated budget for personalization marketing. The data furthermore shows that 86% of companies that were getting the highest ROI reported that personalization made up to 21% or even more of their marketing budget, and over 14% of the same group reported that 40% or more was allocated to personalization, according to the Gartner’s survey.

By 2020, personalization technology will enable e-commerce to increase profit by 15% and 90% of brands will practice at least one form of marketing personalization. (Gartner)

WITH PERSONALIZATION STRATEGY IN 2018:

77% of Companies had Revenue Growth
86% of Companies got high ROI (2x or greater)
1.5% of Companies reported the loss

WITHOUT PERSONALIZATION IN 2018:

52.5% of Businesses experienced Revenue Loss
45.4% of Businesses experienced Revenue Growth

(Gartner)

Socital’s Personalization Strategy

Since adopting Socital’s online solution for personalization our client, a beauty retailer, has drastically grown email database size and increased average cart value.

Results:

116.67% Increase email database post GDPR
53.3% Increase in open rate on Personalized emails
23% CTR on recommendations
6.77% Increase in Avg. Cart Value
We have implemented different personalization strategies to create a customer-centric experience that matches the brand:
  1. On-site personalization
  2. Email personalization
personalization strategy onsite personalization

Companies that have personalization as a part of their marketing strategy
have experienced at least one benefit from this technology:

An increase in sales by
74%
An increase in online traffic by
58%
An increase in profit by
61%
Increase in customer loyalty by
55%

Users’ data collected on different channels enables e-commerce to personalize every touch point of the customer’s journey. According to the Gartner’s findings, email, social, and website visits lead the way.

94.2% of all businesses are currently personalizing on email. But brands are also experimenting with cross-channel interaction in supporting channels such as chatbots, point of sale (POS) system, call center, and in-store sales associates.

(Infosys)

Personalized product recommendations’ effects on conversion rates

Without personalization, you are losing approx. 40% of your customers to other retails, according to Barilliance. Implementing personalized product recommendations can reduce cart abandonment up to 4.35% and get 5.5 higher conversion rate. Even personalized CTAs convert 202% better than default versions (Hubspot).

According to SalesForce findings, buyers who clicked on recommendations are 4.5x more likely to add items to cart, and 4.5x more likely to complete their purchase.

93% of companies see an uplift in conversion rates from personalization.
35% of Amazon’s revenue is generated by its recommendation engine.
74% of customers feel frustrated when website content is not personalized.
59% of consumers who experienced personalization say that it significantly influenced what they purchased.

Do buyers really enjoy when their online shopping journey is personalized?

In a survey of more than 7,000 consumers, SalesForce found that were willing to share personal data for:
Personalized offers or discounts
57%
Personalized product recommendations
52%
Personalized shopping experiences
53%
Buyers who have experienced personalization during their purchase journey:
86% say that personalization influences what they purchase to some extent
86%
67% Are highly in favour of personalized coupons
67%
62% on personalized offers and promotions based on previous experience
62%
58% on product recommendations based on previous purchases
58%
56% say personalization significantly influences what they purchase
56%
31% wish their shopping experience was more personalized than it currently is
31%
Nowadays, buyers are highly in favour of personalization in:
groceries
56%
entertainment
53%
health and beauty
51%
electronics
50%
clothing
47%
pharmaceuticals
42%
furniture/gardening/DIY
41%
(Infosys)

Do buyers really enjoy when their online shopping journey is personalized?

With Socital you’ll improve your customer’s experience and get impressive results.
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