Which personalization techniques work best?
According to Sailthru’s “2022 Retail Personalization Index,” the three most prevalent personalization tactics are predictive personalization, email send-time optimization and buyer journey-based personalization.
Those techniques are described as:
- Predictive personalization (cited by 50 percent of brands and retailers in Sailthru’s survey) — the ability to predict preferences and actions of users based on their past online behaviors and then customize current and future communications via the right channel at the right time.
- Email send-time optimization (47 percent) — a feature that enables marketers to send email messages at the most optimal time to each recipient, based on when they are most likely to engage.
- Buyer journey-based personalization (44 percent) — a tactic that caters to individual buyers’ entire shopping journey, from discovery to point of purchase.
Other popular personalized techniques used by the majority of larger retailers and brands surveyed in the study include channel-based personalization, personalized online landing pages, device-based personalization and click-based personalization.
The study found 71 percent of brands and retailers think they excel in marketing personalization, but that only 34 percent of consumers think the same.
A 2019 study from The Relevancy Group Research sponsored by Liveclicker based on a survey of 147 retailers found most retail marketers “leveraging relatively rudimentary personalization tactics.” The top-five tactics were: first name, used by 86 percent of retailers surveyed; followed by subject line, 66 percent; email body content, 62 percent; offers based on past purchase, 55 percent; and offers based on location/geography, 53 percent.
Relevancy Group wrote in the study, “While many marketers certainly realize some value from these tactics, far fewer are utilizing more sophisticated efforts such as dynamic pricing based on inventory levels, real-time data influence, and rules-based personalization that have the potential to drive more significant business impacts.”
A 2019 study from Kibo, formerly Monetate, found purchase history to be the data most used by retailers to support personalization efforts, cited by 94 percent. That was followed by email activity, 88 percent; website behavioral data, 72 percent; mobile actions, 67 percent; POS system, 42 percent; third-party data, 38 percent; and sales associate data, 37 percent.
- 2022 Retail Personalization Index Retailer & Consumer Survey – Sailthru
- The Value of Personalization Optimization for Retailers – Liveclicker/Relevancy Group
- Monetate Study Finds Brands Experiencing Highest Return on Personalization are Twice as Likely to Cite Customer Lifetime Value as Primary Goal – Monetate/Kibo
DISCUSSION QUESTIONS: What do you think are the most effective, most overrated and most underrated personalization techniques and related data-mining approaches? How do you see personalization tactics evolving over the next few years?