Personalization in Retail: The Latest Trends and Challenges - eMarketer

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Personalization in Retail: The Latest Trends and Challenges

eMarketer Report

By: eMarketer

Published: April 04, 2017

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Most retailers have embarked on some form of personalization strategy. As they seek to expand beyond entry-level tactics, they often run into structural obstacles that keep data and teams in silos. Getting past these barriers will allow for full personalization of the customer experience.

  • Personalization is effective: According to one study, 48% of US marketers reported that personalization on their websites or apps lifted revenues in excess of 10%. Only 11% reported no lift.
  • A recent survey found that 55% of US internet users ranked Amazon as the digital platform having the best personalized customer experience. As Amazon and other companies, such as Netflix and Google, have built customer experiences around customized recommendations and content, other retailers are struggling to keep up. The retailer challenge is amplified by the move to mobile shopping, where consumers browse far fewer products and expect relevant suggestions.
  • Integration of data across devices, channels and functions is essential, but most companies lack this capability. Data from customer relationship management (CRM) systems is often the hardest to tap for personalization purposes.
  • Personalization is as much about the right moment as it’s about the right offer or information.
  • Email remains the most common channel that retail marketers personalize. One study found that two-thirds of US marketers personalized email content, followed by 56% that personalized elements of their website.

"Personalization is widespread, but techniques remain relatively basic. Roughly 90% of senior marketers worldwide are implementing personalization strategies, but only 6% rate their strategy as advanced."

Table of Contents

Why Personalization Matters

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Data Available for Personalization

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Personalization Touchpoints

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18 charts are included in the full report:

Personalization in Retail: The Latest Trends and Challenges

Implementation of Personalization Strategy According to Senior Marketers Worldwide, Dec 2016 (% of respondents)

Why Personalization Matters

Digital Platforms that Provide the Best Personalized Experience According to US Internet Users, Oct 2016 (% of respondents)

How Effective Is Personalization?

Percent Lift Attributable to Website or In-App Personalization Efforts According to US* Marketers, May 2016 (% of respondents)

Consumer-Related Capabilities at Their Company According to Marketers in North America, March 2016 (% of respondents)

Change in Likelihood of Purchasing from an Ecommerce Site if It Offers a Personalized Experience* According to US Internet Users, May 2016 (% of respondents)

Extent to Which Personally Relevant Content from Brands Increases US Internet Users' Purchase Intent, Oct 2016 (% of respondents)

Roadblocks to Effective Personalization

Reasons that US Mobile Phone Users Are Concerned About Companies Knowing How, When and How Often They Use Products, Jan 2016 (% of respondents)

Usage of Cross-Device Behavior Data Among Marketing Executives in North America, by Company Performance, Oct 2016 (% of respondents)

Data Available for Personalization

Criteria Used by US* Marketers for Targeting Visitors/Delivering Personalized Experiences, May 2016 (% of respondents)

Approaches to Personalized Marketing at Their Company According to Senior Marketers in the US and Western Europe*, Jan 2016 (% of respondents)

Types of Data that US Internet Users Expect Companies to Use to Personalize Marketing/Advertising Emails, Aug 2016 (% of respondents)

Local Info

US Mobile Local Ad Spending, Location-Targeted vs. Non-Location-Targeted, 2015-2020 (billions, % change and % of total)

Personalization Touchpoints

Channels Where US* Marketers Are Using Personalization, May 2016 (% of respondents)

Personalization in Marketing

Marketing Professionals in Europe and the US Who Use Dynamic Email Marketing Based on User Behavior, Feb 2017 (% of respondents)

Leading Email Marketing Tactics Used by Retail Marketing Executives Worldwide*, Oct 2016 (% of respondents)

Growth Drivers for Digital Video Advertising According to US Publishers, May 2016 (% of respondents)

Current vs. Planned* Customer Experience Personalization Tactics Used by Their Company According to US Retail Executives, April 2016 (% of respondents)

Location-Based App Features that Their Company Uses for Its Indoor Positioning Systems (IPS) According to Marketers Worldwide, July 2016 (% of respondents)