Study: How Personalization Across All Elements of the Customer Lifecycle Improves ROI

April 27, 2020
 

The Rise of Personalized Commerce Study reveals that companies that leverage a personalization strategy across all elements of the customer lifecycle not only see higher ROI (300% or more), they are in the best position to quickly pivot their business to meet changing customer behaviors.

This study from Kibo Commerce, Monetate, and Certona marks the fourth year we’ve surveyed companies about their personalization efforts, and we’re seeing that half of retailers (51%) that have instated an end-to-end personalization strategy are receiving robust returns.

Some Key Takeaways

The survey found that brands that offer “personalized commerce” are more likely to achieve the highest levels of ROI. Personalized commerce is a three-part personalization strategy that drives the highest return.

  • 70% retailers that employ advanced (AI-driven) personalization achieved ROI of 200% or more.
  • Retailers that personalize 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.

 Some other things to note:

  • Companies that don’t have centralized ownership of personalization are 3X more likely to see negative ROI or small ROI
  • Only 20% of EMEA companies use advanced personalization across the entire customer lifecycle, compared to 34% of NA companies.​

A Holistic Personalized Commerce Approach

Our findings indicate that ROI is much higher for companies that philosophically believe that personalization belongs in both marketing and shopping touchpoints, rather than only on one or the other.

“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.

Fortunately, many retailers already have many of the elements in place to advance this approach.

“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.”

Kibo Commerce CMO

Who We Surveyed

In mid-Q1 2020, with the help of WBR Research, we surveyed 400 ecommerce executives across North America and EMEA. 50% of the participants are headquartered in North America, the other 50% in EMEA. More than a third of responses (38%) were from enterprise level, $1B-plus corporations and 50% were from companies earning $10MM to $1B in 2019. Their seniority levels broke down as follows.