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Advanced Personalization ROI is $20, Liveclicker/Relevancy Group Report Shows

Advanced Personalization Report Cover

We always knew personalization, especially advanced personalization tactics, helps email marketers make more money. Now we have the numbers that show it.

A new report from The Relevancy Group, sponsored by Liveclicker, finds that marketers who move up from basic personalization to advanced tactics such as real-time data, stream-based click data and dynamic offers based on send could see upwards of an additional $20 for every $1 spent.

That’s on top of the ROI marketers already earn on their email efforts, which range from $32 to $44 for every $1 of investment.

“Retailers who use Advanced Personalization Tactics drive upwards of 17% more revenue than marketers who rely on more basic methods,” researchers David Daniels and Nicholas Einstein conclude in the report, The Value of Personalization Optimization for Retailers.

“These numbers are why we work so hard to bring our customers personalization at scale, in real-time in email,” says Kenna Hilburn, VP of Account Development and Partnerships at Liveclicker. “Using data to personalize emails in real time can make a big difference to marketing results, and also to business results and processes. The benefits start with revenue and go far beyond.”

Personalization has become table stakes for marketers for many reasons, the report says. “Consumers of all ages and genders agree that a lack of relevance [or a repetitive send button] makes them less receptive to engage.”  The result: They opt out or go inactive.  

4 top findings

We’ll share a quick look at results below. Download your own copy to find out how marketers use and budget for personalization, how advanced personalization can increase revenue, and what’s keeping them from stepping up their personalization efforts.

  1. Where did that $20 ROI come from

The Relevancy Group first found that revenue data reported to the researchers showed an $18.70 average return. From that, they figured marketers who use advanced personalization more effectively can earn $20 back on every $1 invested in personalization, and even more than that when they optimize for best performance.  

  1. Basic personalization is the most common.

More than 8 in 10 retail and ecommerce marketers use some personalization in email marketing, from first-name personalization (86% use it) to subject-line personalization (72%) and email body content (66%). 

What do marketers aspire to boost their personalization efforts? Real-time data and personalized retargeting and website personalization lead the pack. 

  1. Monthly revenue from click behavior, inventory level and real-time data beats either basic or purchase-based tactics.

Advanced personalization generates almost 14% more monthly revenue than personalization based on purchases and 17% more monthly revenue than basic personalization.  

Although all three advanced tactics produce more revenue, one of them generates the most. Download the report to find out which tactic leads them all!

  1. Lack of IT support and worries about platform security and budget hold back retailers from moving to advanced personalization.

It’s easy to talk about using advanced personalization, but marketers fear it can be a challenge. The Relevancy Group reassured marketers about two of their concerns, saying that today’s personalization platform don’t need significant IT support and have appropriate security and encryption. 

The report is more concerned about the 22% of marketers who say their personalized recommendations rely on merchandiser assortments rather than the complete inventory, which can limit relevant recommendations.

Download the report to find out more

There’s much more in the full report, including a detailed look at how retail marketing executives are tackling the Amazon challenge and a case study of a retailer who uses advanced personalization to overcome challenges with up-to-date content and sold-out inventory.

Download your copy of The Value of Personalization Optimization for Retailers and see how Advanced Personalization Tactics could help you make more money with your email program!