Personalisation can generate up to 20% ROI


The implementation of personalisation improves your return of investment (ROI) and guarantees positive results in any marketing strategy. However, its use needs a qualitative analysis of data and the behaviour of consumers who visit your website.

According to research conducted by The Relevancy Group, nine out of 10 retailers use personalisation in their marketing communications. This includes the name (86%), the subject (66%) and the content (62%) of the email. The results demonstrate how widespread this tactic is, but how little businesses take advantage of it.

Advanced personalization

Customising the relationship between a brand and a consumer should not be limited to calling it by its name in the email. Retailers that use CRM and behavioural data can generate 20% more ROI and up to 17% more profit.

For example, Sephora uses inventory data in real-time. They identified products that a customer is interested in. If the product was out of stock, they will send an “in stock” email when it becomes available again. Nordstrom alerts customers to new discounts on products and brands they like. The brand also informs them if there are any available to pick them up at the store near their location. This means that when it comes to analysing your ROI, the use of personalisation shows a positive impact.

Best practices

According to The Relevancy Group, two of the three main obstacles that retailers identify are related to IT resources. A quarter of respondents indicated that they did not have the support or technological infrastructure to extract the necessary data to implement advanced personalisation.

Others expressed not feeling completely confident in how to analyse and identify the data extracted, in addition to claiming that they have no budget to invest in the implementation of resources and the growth of their personalization initiatives. Terms such as “artificial intelligence” and “machine learning” raise doubts among smaller retailers.

More than half of retailers see Amazon as an invincible competitor in this field and believe their best opportunity is to offer more relevant and enriching experiences. Personalization has a potentially vital role in doing so, so in the next few years, advanced personalization capabilities could emerge as a critical differentiator among retailers.