We know that advanced personalization techniques can earn upwards of $20 – or more – for every $1 invested in it. But coming up with that initial investment can be a challenge for many marketers.
You’ll increase your chances of getting a “Yes” from your boss or executives if you present a request that shows the clear benefits of advanced personalization. A new report from Liveclicker, Driving Value with Advanced Personalization, can help you do the legwork that’s required to build a successful case.
The new report highlights Chico’s, a high-end women’s clothing retailer with 600 boutiques around the U.S., who used live inventory updates to promote its new collections. The result: higher revenue generated from larger average order values.
The full report provides in-depth analysis and details such as the actual percentages of revenue growth and the kinds of advanced tactics each retailer used to generate its gains. Download it here.
How to make your case
Driving Value with Advanced Personalization builds on the groundbreaking findings from The Relevancy Group’s study, The Value of Personalization Optimization for Retailers, produced for Liveclicker, which first quantified the potential $20 ROI from using advanced personalization.
Note: That’s on top of the ROI you earn now from email, estimated at an average $44 on every $1 invested in email.
Although 22% of marketers surveyed for the report said lack of budget was their biggest challenge, the report found marketers spend an average $900,000 or more annually on personalization and recommendation technology.
That’s an appropriate budget amount for advanced personalization, The Relevancy Group reported. If it sounds daunting, consider that the report also found 69% of marketers said they spend $850,000 or less annually.
The report suggests three ways marketers can shave some dollars off the cost of adding advanced personalized technology such as recommendation engines:
- • Look for advanced personalization offerings that are priced on performance and/or clicks. These can cost far less but deliver high revenue.
- • Focus on vendors that can integrate via site tags/scripts as well as utilize open API standards to integrate to existing martech stacks such as inventory and CRM systems.
- • Seek technology vendors that have pre-existing partnerships with leading ESPs and email marketing agencies.
Finally, many of today’s cloud-based platforms that use real-time data to drive advanced personalization tactics integrate easily with databases and CRM systems and require less IT support and intervention, the report says. That’s another source of cost-saving and a point that can help you build a successful case for investment.