Yesterday, I was speaking with a member of the press about Monetate’s newly-published Personalization Development Study which I really love, mostly because studies like this are often full of surprises. We published a similar study annually while I was at Iron Mountain and it was one of my favorite assets we developed.
The report details the outcomes of a study Monetate conducted to understand what it takes to turn personalization goals into measurable ROI. It details results of over 130 senior marketers who had shared their challenges and success. Companies that were studied include those who reported to have exceeded revenue expectations over the last 12 months against those that met or missed their revenue goals.
There were interesting insights:
- Those that succeeded in personalization saw improvement in profitability: 95 percent of those that got 3x (or more) ROI from their personalization efforts increased profitability last year
- Successful organizations have a number of shared qualities, including:
- A documented strategy: 79 percent of organizations that exceeded their revenue goals also have a documented personalization strategy in place, compared to 31 percent of those that met revenue goals, and 8 percent of those that missed revenue goals.
- A dedicated—and growing—budget: those that exceeded revenue goals reported a dedicated budget for personalization 83 percent of the time. The vast majority (88 percent) of that group plans to increase budget for personalization in 2017, compared to 21 and 33 percent of those that met or missed revenue goals, respectively.
- Tools to measure success: 88 percent of those that exceeded revenue goals have a measurement system in place, compared to 45 percent of those that met or missed goals.
One of the most interesting things (for me, at least) were the responses around personalization focus. The study suggests that the most successful organizations have made personalization an integrated part of their operations and charter for all staff, not a siloed project that is managed by a single person. This runs counter-intuitive to the often repeated tactic of trying to elevate the importance of something by making it someone’s job. Yet, at the same time, it makes sense that personalization needs to be how you do what you do, rather than someone’s job.
As someone who works in the personalization technology market, I LOOOOOOOVE the idea of personalization being woven into the fibers of a company! I guess that is product marketing nirvana, right? That what your product does becomes how your customers do what they do.
Of course, now that’s got me thinking- what kinds of things can marketers do to elevate your product to a status of “how you do what you do” versus “something you do?” This is gonna be fun…