2017 trends in personalization - evergage filewhen asked about the importance of various marketing...
TRANSCRIPT
2017TrendsinPersonalization
ResearchscapeInternational Evergage,Inc.
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©2017RESEARCHSCAPEINTERNATIONAL
EXECUTIVESUMMARY
Tohelporganizationsbetterunderstandhowpersonalizationisbeingusedtoday,keybenefits,barrierstoadoption,andplansforthenext12months,EvergageandResearchscapeInternationalsurveyed206organizationsofallsizesabouttheirmarketingoperationsandimplementationofpersonalization.
Thisyear,respondentstothisannualsurveyalmostunanimouslybelievethatpersonalizationhelpsadvancecustomerrelationships(96%),andthattheirprospectsandcustomersexpectapersonalizedexperience(88%).However,onlyaminority(45%)agreethatmarketersaregettingpersonalizationright.Andwhiletheproportionsatisfiedwiththelevelofpersonalizationintheirownorganizationsislowat30%,thereisstillgoodnews:thisrepresentsaconsiderableimprovementfrom2016’s18%.
Respondentscontinuetoreportsubstantialimprovementor"lift"fromtheirreal-timepersonalizationefforts,with88%statingtheyseemeasurableimprovementsduetopersonalization,and23%reportinganimprovementabove20%.Thissuccessleadstoincreasedinvestment,as46%ofrespondentsexpecttheirbudgetsforpersonalizationtoincreaseinthecomingyear.
Echoinglastyear’sresults,emailpersonalizationhadthehighestusageamongthosesurveyed(72%),followedbywebsites(57%).Mobilestillrepresentscomparativelylowerusageatonly28%formobileweband18%formobileapps.
Two-thirdsofrespondentsapproachedpersonalizationwithrule-basedtargetingtosegments(67%)versusthemoreadvancedalgorithmic1-to-1approach(13%),with20%usingboth.Ofthosemarketersnotusingmachinelearning/algorithmicpersonalizationtoday,43%arenotsurewhethertheyareplanningtouseitthisyear,suggestingthatmanymarketersarestillunfamiliarwithmachinelearning.
Thefindingsfromthisyear’ssurveyindicatethatmarketersbelievethatpersonalizationisavaluabletactic,buttheycontinuetostrugglewithexecution.Thereisroomforimprovementinimplementingcross-channelpersonalizationstrategies,leveragingmachine-learningalgorithms,andrelyingondeeperdatafortargeting.
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DETAILEDRESULTS
Whenaskedabouttheimportanceofvariousmarketinginitiatives,71%ofrespondentsratedemailmarketingveryorextremelyimportant,followedbySEO(68%),contentmarketing(67%),customercommunity/loyalty(64%)andpersonalizationofalltypes(63%).
Pleaseratethefollowingmarketinginitiativesinorderofimportanceforyourorganization.
SampleSize:204(99%ofRespondents)
PersonalizationUsageandPlansThemajority(72%)ofrespondentsreportedusingpersonalizationforemail.Amongwebandmobilepersonalization,websitepersonalizationismostcommonwith57%ofrespondentscitingusageinthatchannel.Mobilewebpersonalizationishalfascommon(28%),whilewebapplications(20%)andmobileapps(18%)trailbehindinusage.
Areyouusingpersonalizationinanyofthefollowingchannels?
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Ofthosewhoarenotcurrentlyusingwebsiteorin-apppersonalization(webormobile),justoverhalf(55%)haveplanstobeginusingthiswithinthenextyear.
Doyouhaveplanstousewebsiteorin-apppersonalization(webormobile)withinthenextyear?
SampleSize:66(32%ofRespondents)
Thosewhodonotintendtobeginpersonalizationinitiativeswithinthenextyearmostoftensaythattheyhaveotherhigherpriorityinitiatives(50%)orthattheircompanyisnottechnologicallysavvyenough(33%).
Whynot?
SampleSize:30(15%ofRespondents)
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PersonalizationConfidenceandSatisfactionThereisoverwhelmingagreementthatpersonalizationhelpstoadvancecustomerrelationships(96%).Wouldyouagreeordisagreewiththefollowingstatement:Personalizationhelpsadvancecustomerrelationships.
SampleSize:177(86%ofRespondents)
Almostasmanybelievethattheirprospectsandcustomersexpectapersonalizedexperience(88%).Doyouthinkyourprospects/customersexpectapersonalizedexperience?
SampleSize:177(86%ofRespondents)
96%
4%
AgreeDisagree
88%
12%
YesNo
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Asolidmajority(70%)believethattheirmarketingtoolshelpthemunderstandandactoncustomerdata. Doyoufeelyourmarketingtoolshelpyouunderstandandactonyourcustomerdata?
SampleSize:180(87%ofRespondents)
However,thereismuchlessagreementthatmarketersaregettingpersonalizationright,withmoredisagreeing(55%)thanagreeing(45%)withthisstatement.
Wouldyouagreeordisagreewiththefollowingstatement:Marketersaregettingpersonalizationright.
SampleSize:177(86%ofRespondents)
70%
30%
YesNo
55%
45%DisagreeAgree
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Whenitcomestotheirownpersonalizationefforts,onlyonethirdofrespondents(33%)areveryorextremelyconfidentthattheyhavethetoolstheyneedforpersonalization.Whilethemajorityofrespondentsarelessconfidentwiththeirpersonalizationtools,thepercentageofrespondentswhoareveryorextremelyconfidenthasimprovedsincelastyear,risingfrom24%. Howconfidentareyouthatyouhavethetoolsyouneedforwebsiteand/orin-apppersonalization?
SampleSize:124(60%ofRespondents)
Justunderonethirdofrespondents(30%)areveryorextremelysatisfiedwiththelevelofpersonalizationintheirmarketingefforts.Thisfigurealsorepresentsasignificantimprovementfromlastyear’s18%.B2CrespondentsweremorelikelytobesatisfiedwiththeireffortsthanB2Bmarketers–53%ofB2Cmarketerswereveryorextremelysatisfiedcomparedwithonly21%ofB2Bmarketers. Overall,howsatisfiedareyouwiththelevelofpersonalizationinyourmarketingefforts?
SampleSize:116(56%ofRespondents)
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Respondentsweremostsatisfiedwithweb-applicationpersonalization(52%wereveryorextremelysatisfied).Interestingly,email–themostpersonalizedchannel–wastiedwithmobilewebforthelowestsatisfactionrates,withonly39%ofrespondentsfeelingveryorextremelysatisfied.Satisfactionhasimprovedforallchannelssincelastyear. Howsatisfiedareyouwiththelevelofpersonalizationforeachofthefollowingchannels?
SampleSize:154(75%ofRespondents)
Whenaskedtogradetheircurrentpersonalizationefforts,44%gavethemselvesaB,themostpopularchoice.Whilethe46%ofrespondentswhogavetheireffortsaCorlowersuggestsroomforimprovement,itdoesalreadyrepresentanimprovementover2016’sresults–where55%gavethemselvesaCorlower,andCwasthemostpopulargrade(39%).Whatgradewouldyougiveyourcurrentpersonalizationefforts?
SampleSize:116(56%ofRespondents)
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UsageMovingintospecificpersonalizationtactics,themostcommonpersonalizationformatamongrespondentswasinlinecontent(textorimagesinserteddynamicallywithinthepagecontent)at59%,withpop-ups(48%),surveyquestions(44%)andinformationbars(messagesacrosstoporbottomofpage)at42%alsocommonlyused. Whatpersonalizationformatsdoyouuse?
SampleSize:110(53%ofRespondents)
Emailcampaignsarethemostcommontypeofpersonalizedexperience,usedby65%ofrespondents,withpersonalizationofthehomepage(58%),recommendations(58%)andinteriorpages(50%)alsocommon.Whattypesofpersonalizedexperiencesdoyouuse?
SampleSize:110(53%ofRespondents)
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Personalizedcampaignscanbetargetedviarulerulesand/ormachine-learningalgorithms.Themajorityofrespondents(67%)useonlyrule-basedtargetingtosegments,while13%useonlymachine-learningalgorithmsand20%usebothapproaches. Whichapproachtopersonalizationdoyouutilize?
SampleSize:110(53%ofRespondents)
Nearlyathird(32%)ofthosenotusingmachinelearning/algorithmicpersonalizationintendtostartdoingsointhenextyear.While24%havenosuchplans,asubstantialminority(43%)arenotsure,suggestingalevelofunfamiliaritywiththetechnique.Doyouhaveanyplanstobeginusingmachine-learning/algorithmicpersonalizationinthenextyear?
SampleSize:74(36%ofRespondents)
Whenitcomestotargetingvisitorswithpersonalizedcampaigns,anumberofdifferentcriteriacanbeused.Themajorityofrespondentsuselocation(60%),demographics(56%),andpages/contentviewed(54%)fortargetingtheircampaigns.
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Whichofthefollowingcriteriadoyouusefortargetingvisitorsorusersinordertopersonalizetheexperience?-Top10
Note:Showingonlythetop10mostselectedoptions.
SampleSize:109(53%ofRespondents)
MeasurementMostrespondentshavevariouscriteriathattheyuseforassessingthevalueoftheirpersonalizationefforts.Liftinconversionrateisthemostpopularbyfar(68%),withimprovementsintheclickthroughrate(50%),timeonsite(39%),andrevenue(39%)alsocommon. Doyoumeasurethevalueofpersonalizationbyimprovementsin…?-Top10
Note:Showingonlythetop10mostselectedoptions.
SampleSize:105(51%ofRespondents)
68%
50%
39%
39%
33%
31%
30%
26%
17%
14%
0% 25% 50% 75% 100%
Conversionrate
Clickthrough rate
Timeonsite
Revenue
Retention/renewalrate
Customersatisfactionrates
Pageviews
Bouncerate
Averageordervalues
Profit
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88%ofmarketersreportimprovementinresultsduetopersonalization.Themajority(53%)ofrespondentstypicallyseealiftofover10%fromtheirpersonalizationefforts,while36%typicallyseeliftof1-10%orless.Aremarkable10%ofrespondentssawaliftofgreaterthan30%. Whatpercentageimprovementor“lift”areyougenerallyseeingfromyourwebsiteorin-apppersonalizationefforts?
SampleSize:104(50%ofRespondents)
Themajorityofrespondents(63%)indicatethattheyseeincreasedconversionratesfromtheirpersonalizationefforts.Respondentsalsoseebenefitinotherareassuchasimprovedcustomerexperience(61%)andincreasedvisitorengagement(57%).Whatarethemainbenefitsyouseefromwebsite/in-apppersonalizationforyourorganization?-Top10
Note:Showingonlythetop10mostselectedoptions.
SampleSize:105(51%ofRespondents)
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InvestmentinPersonalizationNearlyhalfofrespondents(46%)expecttheirbudgetsforpersonalizationtoincreasethisyear,upfrom35%lastyear.Only4%expecttoseeadecreaseinbudget. Comparedtolastyear,howwillyourpersonalizationbudget/spendingchangethisyear?
SampleSize:104(50%ofRespondents)
Themajorityofrespondents(79%)expecttoseebudgetincreasesover10%,commonlyinthe11-20%range.
Respondentswereaskedabouttheirstaffingfocusedonpersonalization.Mostoftherespondentsdocurrentlyhavepersonnelfocusedonpersonalization(59%).
Doyouhavepersonnelfocusedonpersonalization?
SampleSize:104(50%ofRespondents)
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Thisis,however,moreoftenapart-timeresponsibility(57%)thanafull-timeone(38%). Isthistheirfull-timeresponsibilityortheirpart-timeresponsibility?
SampleSize:60(29%ofRespondents)
BarrierstoPersonalizationWhenthosewhowerenotcurrentlyusingpersonalizationwereaskedwhytheirorganizationshadnotadoptedit,budgetconstraints(48%),otherpriorities(44%),andlackofknowledge,skillsorpeople(41%)werecitedastopreasons.Norespondentsindicatedthattheyhadyettoadoptpersonalizationbecausetheybelieveditwasafad. Whyhasyourorganizationnotadoptedwebsite/in-apppersonalization?
SampleSize:61(30%ofRespondents)
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PersonalizationasaCorporatePriorityWhenaskedifpersonalizationshouldbeabiggerpriorityintheirorganizations,73%ofrespondentsanswered“yes.”Thisnumberisupfromlastyear’s64%,indicatingthatpersonalizationisgrowinginimportancetomanyorganizations. Doyoubelievepersonalizationshouldbeabiggerpriorityinyourorganizationthanitiscurrently?
SampleSize:165(80%ofRespondents)
DemographicsandFirmographicsAthirdofrespondentsaremarketingmanagersorteammembers.Theremainingrespondentshavemoreseniorroles(DirectorofMarketing,21%;CEO/GM/Divisionhead,13%;VP/SVPMarketing,5%;CMO.,4%),orarespecialistonline/digital/webmarketers(13%).Whichofthefollowingtitlesbestreflectsyourrole?
SampleSize:159(77%ofRespondents)
Whilerespondentsrepresentedabroadrangeofindustries,Technology(26%)hadthehighestrepresentation.TheothercommonindustrieswereRetail(12%),Finance&Insurance(10%),andTravel&Transportation(8%).
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Whatisyourorganization’sindustry?-Top10
Note:Showingonlythetop10mostselectedoptions.
SampleSize:159(77%ofRespondents)
ThesamplewasmadeupofbothSMEsandlargecorporations,with48%havingsalesoflessthan$50millionand23%havingsalesof$1billionormore. Whatareyourorganization'sannualsales?
SampleSize:159(77%ofRespondents)
ThemajorityofcompaniesareintheB2Barena,eithersolely(43%)ortogetherwithB2C(41%).Only16%areentirelyB2Cfocused.
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IsyourcompanyB2B,B2Corboth?
SampleSize:159(77%ofRespondents)
ThemajorityoftechnologycompaniessurveyedareB2Bcompanies(78%).
ThesamplewasfocusedontheUnitedStates(78%),butwithrepresentationfromanumberofothermarkets,principallyCanada(6%),theUnitedKingdom(3%),andIndia(3%). Whatcountryareyoulocatedin?-Top10
Note:Showingonlythetop10mostselectedoptions.
SampleSize:157(76%ofRespondents)
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RESEARCHSCAPEMETHODOLOGY
OnbehalfofEvergage,Researchscapesurveyed206respondentsfrom19countriesusinganonlinestudyfieldedfromFebruary16toMarch28,2017,tobetterunderstandcurrentadoptionofmarketingpersonalization.Thesurveyresultswerenotweighted.
Throughouttheresearchprocess,ResearchscapefollowedaTotalSurveyQualityapproachdesignedtominimizeerrorateachstage.TotalSurveyQuality,alsoknownasTotalSurveyError,recognizesthatmultiplesourcesoferrorcanreducethevalidityofsurveyresearch.