Presented by Sailthru
If you’re still not convinced that personalization can bring substantial benefits to the companies that adopt it, the results from a new survey by Boston Consulting Group just might persuade you. BCG queried more than 50 large companies and found that:
- True personalization spurs growth. Brands that create personalized experiences by combining digital technologies and proprietary data are growing two to three times faster than those that do not.
- Market share will shift to those who personalize. Over the next five years, in just three industries — retail, healthcare, and financial services — personalization will result in an $800 billion revenue shift to companies that get it right. BCG estimates that just 15 percent of companies will be among those who “get it right.”
The mechanism that enables these changes will sound familiar to anyone who knows what we’re about here at Sailthru. BCG found what we’ve long believed: that personalization allows brands to create individual user experiences, generating greater loyalty among customers.
Ecommerce company JustFab is one example of this: By personalizing their customers’ email and website experiences, JustFab boosted their revenue from email by 39 percent. Meanwhile, their customer churn rate sank by 46 percent.
While JustFab’s experience may sound exceptional, they’re not alone. Lifestyle company Alex and Ani, best known for its jewelry, used personalization to boost its email revenue by 73 percent. Over a three-month period, Betabrand increased its repeat purchase rate by 42 percent — again, thanks to personalization.
In its report, BCG stresses that personalization should go well beyond marketing. As the above results show, it’s simply too powerful to be corralled like that. Instead, says BCG, companies “need to put brand individualization at the forefront of their strategy agenda to influence everything they do, including marketing, operations, merchandising, and product development.”
Great expectations, impressive results
The 50 companies surveyed by BCG have big expectations for their personalization programs.
- Two-thirds of respondents said they expect personalization to drive a revenue lift of six percent or more.
- Several companies said they’d already seen top-line gains of ten percent or more.
- At half of the top performers, personalization efforts are overseen by the CEO and…
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