2018 Trends in Personalization - Donuts · 2019. 4. 16. · Personalization has seen wide adoption as a marketing tactic, with 92% of marketers reporting usage in some way. Three

2018 Trends in Personalization

ResearchscapeInternationalEvergage,Inc.

2SURVEY RESULTS PAGE 2

©2018RESEARCHSCAPEINTERNATIONAL

EXECUTIVE SUMMARY

Tohelporganizationsbetterunderstandthekeybenefits,currentusageandbarrierstoadoptionofpersonalization,alongwithmarketers’plansforthenext12months,EvergageandResearchscapeInternationalsurveyed300marketingprofessionalsfromfivecountriesin19differentindustries.TheonlinesurveywasfieldedfromFebruary22toMarch28,2018.Marketersoverwhelminglyagree(98%)thatpersonalizationhelpsadvancecustomerrelationships,with74%claimingithasa“strong”or“extreme”impact.Nearly9outof10(88%)statethattheircustomersandprospectsexpectapersonalizedexperience.However,thisyear,wefoundthatmarketersaremoreunsatisfiedwiththeircurrenteffortsandarelessconfidentintheirabilitytoachievesuccessfulpersonalizationtoday.Only12%ofmarketersare“very”or“extremely”satisfiedinthelevelofpersonalizationintheirmarketingefforts,while38%are“moderately”satisfied.Onereasonforthisdissatisfactionlikelystemsfromthechallengemarketersfaceinbringingcustomerdatatogether(55%ofmarketersdon’tfeeltheyhavesufficientdataandinsightsforeffectivepersonalization,whilemarketersstoretheircustomerdatainameanoffourdifferentsystems).Theyalsofacechallengestrackingcustomerjourneysandlinkinginsightsacrosschannels(e.g.web,mobile,emailandothers),as46%ofmarketershaveafewchannelsconnectedwhile27%havenoconnections.Asaresult,marketersgenerallyfeelthattheyhavefurthertogobeforereachingpersonalizationmaturity,as52%ratetheirorganization’spersonalizationmaturitylevelas“limited”whileonly8%rateitas“advanced.”Yet,marketersstatethattheyareexperiencingsuccesswithpersonalization.Themajority(87%)reportameasurableliftfromtheirpersonalizationefforts.Half(54%)experiencealiftofmorethan10%,while13%reportaliftofover30%.Thissuccessistranslatingtocontinuedsupportandinvestment.Thevastmajorityoforganizations(97%)plantomaintainorincreasetheirpersonalizationbudgetsthisyear.Inaddition,morethanthreequartersofrespondents(77%)believepersonalizationshouldbeabiggerpriorityintheirorganizationthanitcurrentlyis–up4pointsfromlastyearand13pointsfrom2016.



MARKETER ATTITUDES TOWARD PERSONALIZATION

Thevastmajorityofmarketers(98%)believethatpersonalizationhasatleastsomeimpactonadvancingcustomerrelationships,whilenearlythreequarters(74%)believepersonalizationhasa“strong”or“extreme”impactonadvancingcustomerrelationships.What is the impact, if any, of personalization on advancing customer relationships?

Sample Size: 300 (All Respondents)

56%

18%

17%

8%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Strongimpact

Extremeimpact

Moderateimpact

Slightimpact

Noimpact



Importantly,88%believetheirprospects/customersexpectapersonalizedexperience.

Do you think your prospects/customers expect a personalized experience?


88%

12%

Yes No



Yetmarketersdon’tfeelthattheindustryissuccessfullydeliveringpersonalizationtocustomers.Only31%believethatthemarketersarecurrentlygettingpersonalizationright.

Would you agree or disagree with the following statement: Marketers are getting personalization right.


69%

31%

Disagree Agree



Thesentimentofdissatisfactionbecomesmorepronouncedwithinlargecompanies,as83%ofmarketersatorganizationswith$1billionormoreindicatethatmarketersarenotgettingpersonalizationrightcomparedtoanaverageof63%ofmarketersatsmallerorganizations.Cross tab: Would you agree or disagree with the following statement: Marketers are getting personalization right. By company size

33%

67%

39%

61%

37%

63%

38%

63%

39%

61%

17%

83%

0%

25%

50%

75%

100%

Agree DisagreeLessthan$1million $1-9million$10-49million $50-99million$100-499million $1billionormore



PERSONALIZATION USAGE AND SATISFACTION

Personalizationhasseenwideadoptionasamarketingtactic,with92%ofmarketersreportingusageinsomeway.Threeoutoffourmarketers(77%)areapplyingpersonalizationtoemails–andoneoutoftwoarepersonalizingtheirwebsites(52%).Lessthanathirdareutilizingitwithamobileapp(31%)orwebapplication(24%).

In which of the following digital channels are you using personalization?


77%

52%

31%

24%

8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Email

Website

Mobileapp

Webapplication

Noneoftheabove



Companieswhomarkettoatleastsomeconsumersaremorelikelytopersonalizetheirmobileapps(45%ofB2Ccompaniesand38%ofhybridB2B/B2Ccompanies)thanarethosewhomarketexclusivelytobusinesses(13%ofB2Bcompanies).B2Bsarealsolesslikelytopersonalizewebapplications(13%comparedto25%ofB2Ccompanies)andmorelikelytofavoremailpersonalizationthananyothergroup(80%).

Cross tab: In which of the following digital channels are you using personalization? By B2B vs. B2C

50%

13% 13%

80%

7%

45%

25%

45%

73%

10%

49%

28%

38%

76%

12%

0%

10%20%

30%40%

50%

60%70%

80%90%

100%

Website Webapplication Mobileapp Email Noneoftheabove

B2B B2C Both



Manymarketersseeroomforimprovementinthecurrentlevelofpersonalizationintheirmarketingefforts.While70%aremoderatelyorslightlysatisfied,18%arenotsatisfiedatall.Asmallerportion(12%)ofrespondentsareveryorextremelysatisfiedwithcurrentefforts.

Overall, how satisfied are you with the level of personalization in your marketing efforts?

Sample Size: 241 (80% of Respondents)

Respondentsnotsatisfiedwiththeircurrentlevelofpersonalizationoftenfeeltheyareintheearlystagesoftheirpersonalizationjourney.Whilesomesimplydon’tyethavethetoolsortheexpertise,othersfeeltheyhavemoreworktodototrulydelivereffectivepersonalization.

Marketerscitedvariousfactorsthatimpededtheirsatisfactionwiththelevelofpersonalizationintheirmarketingefforts.Feedbackincludes:

• "Wearestillselectingtherighttoolsandtryingtooptimize."• "Wedon'thavethepeopleinplacetomakepersonalizationhappen.

We'veinvestedinthetools,butnotthepeople."• "Thepersonalizationwedoisquitelimitedtoahandfulofcampaigns.

Personalizationshouldbedoneand/orbeapplicabletothemajorityofemailcampaigns."

18%

32%

38%

10%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Notsatisfied

Slightlysatisfied

Moderatelysatisfied

Verysatisfied

Extremelysatisfied



• "Barelyscratchingthesurfaceofwhatcouldandshouldbedone.We'rejustinthefirstinning."

• "Needmoreexperiencetoconnectwithfuturecustomersonapersonallevel."

Furtherreflectingthesentimentthatmarketersfeeltheystillhavemoreworktodo,whenaskedtogradetheircurrentpersonalizationefforts,nearlyhalfofrespondents(46%)gavethemselvesaC,while29%gavethemselvesaB.

What grade would you give your current personalization efforts?


6%

29%

46%

17%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

A

B

C

D

F



Gooddataisessentialforsuccessfulpersonalization.Bringingtherightdatasourcestogetherisaconstantstruggleformarketersacrossindustries.Reflectingthischallenge,morethanhalfofmarketers(55%)feeltheydon’thavesufficientdataandinsightstodriveeffectivepersonalization.Do you feel you have sufficient data and insights for effective personalization?


45%

55%

Yes No



MarketersatB2BandhybridB2B/B2Ccompaniesfeelthisdatachallengemoredeeply–58%ofmarketersatB2Bcompaniesand60%ofhybridcompaniesfeeltheydon’thavesufficientdataandinsightsforeffectivepersonalizationcomparedto39%ofB2Cs.

Cross tab: Do you feel you have sufficient data and insights for effective personalization? By B2B vs. B2C

42%

58%61%

39%40%

60%

0%

25%

50%

75%

100%

Yes No

B2B B2C Both



Alackofcentralizedcustomerdataandinsightsmayimpedecompanies’progresstowardpersonalization:nearlyhalf(48%)storetheircustomerandvisitordatain4ormoredifferentsystems.Themedianandmostfrequentanswer(mode)was3systems,whilethemeanwas4.In how many different systems do you store customer and visitor data?


1%

8%

22% 22%

15% 16%

6%

1% 2%

5%

1% 1% 0%0%

5%

10%

15%

20%

25%

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20NumberofDataSources



PERSONALIZATION FORMATS AND TYPES

Themostcommonlyusedpersonalizationformatsarebanners(45%),call-outmessages(40%),inlinecontent(38%),andsurveyquestions(36%).Modalsaretheleastcommonlyusedformat(16%),and12%ofcompaniesdonotuseanyoftheoptions.What personalization formats do you use?


Toclarifytwooftheseterms,respondentswerepresentedwiththefollowingfootnotes:*Inlinecontentallowsyoutodynamicallyaddorinsertsectionsofcontentonapage/screen/email

**In-pageeditsallowyoutomodifyorremoveexistingtextorimagesonapage/screen/email

45%

40%

38%

36%

30%

29%

25%

16%

6%

12%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Banners

Call-outmessages

Inlinecontent*

Surveyquestions

In-pageedits**

Pop-ups

Informationbars

Modals

Other

Noneoftheabove



Asemailisthemostcommonchannelforpersonalization,it’snosurprisethat71%ofmarketersapplypersonalizationinemailcontent.Thewebpagesmostoftenpersonalizedarehomepages(45%)andlandingpages(37%),followedbyinteriorpages(28%)andproductdetailpages(27%).One-fifthofmarketerspersonalizetheirblogs(20%),whilenearlyasmanyprovidepersonalizednavigation(18%)andpersonalizedsearchexperiences(17%).

Where do you utilize personalized experiences? - Top 10

Note:Showingonlythetop10mostselectedoptions.


71%

45%

37%

28%

27%

20%

18%

17%

14%

13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Emailcontent

Homepage

Landingpages

Interiorpages

Productdetailpages

Blog

Navigation

Search

Pricing

Appscreens



Marketersmostoftenutilizerule-basedtargetingtosegments(68%)andtriggeredmessages/notifications(52%).Oneoutoffour(26%)usesmachinelearning/algorithmic1-to-1personalization.

Which approach to personalization do you utilize?


68%

52%

26%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Rule-basedtargetingtosegments

Triggeredmessages/notifications

Machinelearning/Algorithmic1-to-1



Amongthosenotyetusingmachinelearning,26%ofmarketersatB2Borganizations,55%atB2Corganizations,and49%atorganizationsthatarebothB2BandB2Cplantowithinthenextyear.

Cross tab: Do you have any plans to begin using machine-learning/algorithmic personalization in the next year? By B2B vs. B2C


26%

74%

55%

45%49% 51%

0%

25%

50%

75%

100%

Yes NoB2B B2C Both



Whenaskedhowtheyarepersonalizingtheiremailcampaignsinparticular,threeoutoffourcompanies(76%)indicatedthattheyincorporatecustomers’firstnamesand/orcompanies’namesintothemessageorsubjectlines.Halfpersonalizebytailoringmessagingorpromotionsbyaudiencesegment(52%),providingproductorcontentrecommendationsbyaudiencesegment(51%),orpersonalizingemailmessagesatsendtime(49%).Onlyaquarterofemailcampaigns(25%)arepersonalizeddowntotheindividuallevel,includingproductorcontentrecommendationsandtailoredmessagingorpromotions.Amereeighth(13%)ofrespondentsarepersonalizingemailsatopentime.

How are you personalizing your email campaigns?


76%

52%

51%

49%

35%

25%

25%

20%

13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Firstnameand/orcompanynameinthemessageorsubjectline

Tailoredmessagingorpromotionsbyaudiencesegment

Productorcontentrecommendationsbyaudiencesegment

Emailmessagespersonalizedatsendtime

Triggeredemailssentbasedonvisitor/user/shopperbehaviors

Productorcontentrecommendationsperindividual

Tailoredmessagingorpromotionsperindividual

Triggeredemailssentbasedonproductorcontentcatalogchanges

Emailmessagespersonalizedandupdatedatopentime



Marketersmostoftenconsidercampaignsource(43%),location(39%),anddemographics(37%)whentargetingtheiraudiencetopersonalizethecustomerexperience.Athirdlookmorecloselyatindividualuserbehavior–includingproductspurchased(36%),clicks(33%),andpages/contentviewed(32%).

Marketerslessfrequentlyconsiderauser’sstageofthecustomerjourney(24%)andpreviousvisitbehavior(23%).Which of the following criteria do you use for targeting your audience in order to personalize the experience? - Top 10



43%

39%

37%

36%

33%

32%

27%

25%

24%

23%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Campaignsource

Location

Demographics

Productspurchased

Clicks

Pages/contentviewed

Company

Browser

Stageofcustomerjourney

Previousvisit(s)behavior



MEASUREMENT AND BUDGETS

Marketersgaugethevalueofpersonalizationbylookingatimprovementsinconversionrates(51%)andclickthroughrates(49%)mostoften.Marketersalsociteincreasedrevenue(37%)andpageviews(32%)asmeanstheircompanyusesformeasuringtheeffectivenessofpersonalization.

Do you measure the value of personalization by improvements in…? - Top 10



51%

49%

37%

32%

26%

19%

19%

19%

17%

13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Conversionrate

Clickthroughrate

Revenue

Pageviews

Timeonsite

Customersatisfactionrates

Retention/renewalrate

Profit

Bouncerate

Wedon’tmeasurethebenefits



Thetopfivebenefitsofpersonalizationthatmarketersarerealizingincludepositiveeffectsonthebrand-customerrelationship–suchasincreasedvisitorengagement(55%),improvedcustomerexperience(55%),andimprovedbrandperception(39%)–andontheorganization’sbottomline,intheformofincreasedconversionrates(51%)andincreasedleadgeneration/customeracquisition(46%).

What are the main benefits you see from personalization for your organization? - Top 10



55%

55%

51%

46%

39%

27%

25%

24%

20%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Increasedvisitorengagement

Improvedcustomerexperience

Increasedconversionrates

Increasedleadgeneration/customeracquisition

Improvedbrandperception

Increasede-commercerevenues

Increasedcustomerlifetimevalue/loyalty

Increasedvalueofothermarketingprograms

Reducedchurn/increasedretention

Makesme/myteamlookgood!



Themajorityofmarketers(87%)reportameasurableliftfrompersonalization.Half(54%)experiencealiftofmorethan10%,while13%reportaliftofover30%.What percentage improvement or “lift” are you generally seeing from personalization efforts?


13%

33%

27%

13%

7%

4%

2%

0% 25% 50% 75% 100%

None

1-10%

11-20%

21-30%

31-50%

50-75%

76-100%



Andthisyear,6%ofmarketersrespondedthattheyseealiftofover50%,upfrom2%fromlastyear.

Sample Size: 2017 – 104 (50% of Respondents)

2018 – 193 (64% of Respondents)



Themajorityofrespondents(97%)plantomaintainorincreasetheirspendingonpersonalization.Formostcompanies(60%),thebudgetforpersonalizationwillremainthesamein2018astheyearprior.

Compared to last year, how will your personalization budget/spending change this year?


60%

37%

3%

0% 25% 50% 75% 100%

Staythesame

Increase

Decrease



Companieswhomarkettoconsumersaremorelikelytoincreasespendingonpersonalizationin2018:53%ofB2Csand43%ofhybrids(B2CandB2B)willbumpupallocationsintheirbudgets,whilejust25%ofB2Bswilldothesame.Companieswhomarkettobusinessesonly(B2Bs)aremorelikelytokeepthingssteady:72%willmaintaincurrentspending,comparedto(44%and54%respectively)ofothercompanytypes.

Cross tab: Compared to last year, how will your personalization budget/spending change this year? By B2B vs. B2C

25%

72%

3%

53%44%

3%

43%

54%

3%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Increase Staythesame Decrease

B2B B2C Both



Overhalfoforganizations(52%)havepersonnelfocusedonpersonalizationin2018.

Do you have personnel focused on personalization?


52%

48%

Yes No



Companieswhouserecommendationsenginesand/orpersonalizationplatformsweremorelikelytoemployeepersonnelfocusedonpersonalization(87%and79%respectively)thanthoseusingothersolutions.

Cross tab: Do you have personnel focused on personalization? By tools used to execute personalization

58%

36%

6%

50%44%

7%

66%

25%

9%

79%

19%

2%

55%

39%

6%

87%

13%

54%

42%

4%

0%

25%

50%

75%

100%

Yes No DonotknowA/Btesting Emailpersonalizationtool Exit/bouncemessagingtool

Personalizationplatform Pushnotifications Recommendationsengine

Triggeredemailsolution



Moststaffworkingonpersonalizationdosoonapart-time(59%)ratherthanfull-time(41%)basis.Is this their full-time responsibility or their part-time responsibility?


59%

41%

Part-time Full-time



LEVEL OF CORPORATE ADOPTION

Threeoutoffourmarketers(77%)believepersonalizationshouldbeabiggerpriorityintheirorganizationthanitcurrentlyis–anumberthathasgrowneveryyearsince2016.

Do you believe personalization should be a bigger priority in your organization than it is currently?

Sample Size: 2016 – 165 (66% of Respondents)





Marketerssaidthegreatestobstaclestomakingpersonalizationabiggerpriorityintheirorganizationsinvolvelackingresources–primarilybudget(51%),personnel(49%),andknowledge/skills(40%).Aboutathirdpointedtotechnicalissues,suchaspoortechnologysolutions(34%),lowqualitydata(31%),andaccesstodata(31%).

Fewermentionedalackofexecutivesponsorship(24%)orcompanyculture(18%)ashindrances,suggestingenthusiasmforpersonalizationispresentinmanyorganizations.What are the greatest obstacles to making personalization a bigger priority in your organization? - Top 10



51%

49%

40%

34%

31%

31%

28%

28%

25%

24%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Lackofbudget

Lackofpersonnel

Lackofknowledge/skills

Poortechnologysolutions

Lowqualitydata

Accesstodata

Lackoforganizationalalignment

ITdepartmentconstraints

Toomanytechnologysolutions

Lackofexecutivesponsorship



Mostmarketersthinktheirorganizationshaveplentyofroomtogrowintermsofpersonalizationmaturity:half(52%)ratedtheirorganization’scurrentstageaslimited,whilejustoneoutoften(11%)felttheirswasadvancedorbest-in-class.

How would you rate your organization's personalization maturity?


52%

33%

8%

4%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Limited

Moderate

Advanced

Non-existent

Best-in-class



Theabilitytoconnectdifferentchannelsisessentialforomnichannelpersonalization.Aquarteroforganizations(27%)havehalformoreoftheirchannels’insync,butjustasmany(27%)don’thaveanychannelsconnected.Thelargestgroupofrespondents,nearlyhalf(46%),hasconnectedafewchannels.Which of the following describes your company's approach to omnichannel personalization?




Thetwotoolsmarketersusemostoftentoexecutepersonalizationacrossdigitalchannelsareemailpersonalizationtools(64%)andA/Btesting(55%).Triggeredemailsolutions(36%)andpersonalizationplatforms(26%)roundoutthetopfour.Lesscommonareexit/bouncemessagingtools(17%),recommendationsengines(17%),andpersonalizedsearchtools(8%).

What tools are you using to execute personalization across your own digital channels? - Top 10



64%

55%

36%

26%

18%

17%

17%

15%

8%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Emailpersonalizationtool

A/Btesting

Triggeredemailsolution

Personalizationplatform

Pushnotifications

Exit/bouncemessagingtool

Recommendationsengine

In-appmessaging

Personalizedsearchtool

Other



DEMOGRAPHIC QUESTIONS

Abouthalfofrespondentswereeitherdirectorsofmarketing(25%)ormarketingmanagersorteammembers(22%).AfewotherswereCEOs/GMs/divisionheads(7%),whileanother6%wereVPs/SVPsofmarketing,online/digitalwebmarketers,inmarketingoperations,ordataanalysts/datascientists.

Which of the following titles best reflects your role? - Top 10



25%

22%

7%

6%

6%

6%

6%

4%

2%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Directorofmarketing

Marketingmanagerorteammember

CEO/GM/Divisionhead

VP/SVPmarketing

Online/digital/webmarketer

Marketingoperations

Dataanalyst/datascientist

Online/digital/webmarketing

Merchandiser

Emailmarketing



Aboutfouroutoftenrespondentsworkedineithertechnology(21%)orfinance&insurance(18%).Othercommonsectorsincludedretail(9%),othermanufacturing(7%),education(6%),andotherservices(6%).

What is your organization’s industry? - Top 10



21%

18%

9%

7%

6%

6%

5%

5%

5%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Technology

Finance&Insurance

Retail

OtherManufacturing

Education

OtherServices

HealthCare

Media&Entertainment

Telecommunications

ConsumerElectronics



Morethanathirdofrespondents(36%)camefromorganizationswith$500millionormoreinannualsales(26%with$1billionormore).Another15%workedatorganizationswithannualsalesof$10-49million.

What are your organization's annual sales?


14%

9%

15%

12%

14%

10%

26%

0% 25% 50% 75% 100%

Lessthan$1million

$1-9million

$10-49million

$50-99million

$100-499million

$500-999million

$1billionormore



Forevery10companies,4wereB2Bs(41%),2wereB2Cs(20%),andtheremaining4werehybridsofthetwo(38%)in2018.Is your company B2B, B2C or both?


41%

38%

20%

0% 25% 50% 75% 100%

B2B

Both

B2C



Theoverwhelmingmajorityofrespondents(93%)werelocatedintheU.S.Another2%eachwerefromIndia,theU.K.,Canada,andGermany.(Totalexceeds100%duetorounding.)

What country are you located in?


93%

2%

2%

2%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

UnitedStates

India

UnitedKingdom

Canada

Germany

Austria

China

Switzerland

Other



APPENDIX A - RESEARCHSCAPE METHODOLOGY

OnbehalfofEvergage,Researchscapeconductedasurveyof300respondentsfrom5countriesinordertobetterunderstandthebehavior,usage,andattitudesofmarketingprofessionalstowardpersonalization.TheonlinesurveywasfieldedfromFebruary22toMarch28,2018.Thesurveyresultswerenotweighted.

Throughouttheresearchprocess,ResearchscapefollowedaTotalSurveyQualityapproachdesignedtominimizeerrorateachstage.TotalSurveyQuality,alsoknownasTotalSurveyError,recognizesthatmultiplesourcesoferrorcanreducethevalidityofsurveyresearch.

Documents

2018 Trends in Personalization - Donuts · 2019. 4. 16. · Personalization has seen wide adoption as a marketing tactic, with 92% of marketers reporting usage in some way. Three