Chart of the Day: Ecommerce businesses share their ROI from personalization for the Retail, Travel and Financial services sectors
There are now many options for website personalization tools, but we know from our member research that many businesses have yet to implementation personalization for different reasons.
I'm sharing these figures from a new research report since it may help as part of putting together a business case for investment in a tool. In the report, Personalization is defined as:
"the ability to interact with each individual, at any moment, across touch points based on everything known about them, and includes testing, segmentation, and individualization approaches".
The first chart shows that across all three sectors reported, the vast majority - between 70 and 70% - do report a positive ROI. I was surprised that the proportion of businesses who don't or can't wasn't higher since many smaller businesses haven't fully implemented personalization. This perhaps reflects the larger businesses surveyed.
The second chart shows how travel and hospitality respondents reported receiving the highest return on their personalization investment, with 18 percent of respondents seeing 3x their investment (compared to 13 percent for retail and only 8 percent for financial services). In general, financial services self-report as the least mature in personalization implementation, with only six percent of respondents, noting their organization has an advanced personalization strategy in place.
The report also shows a link between profitability and a documented personalization strategy. According to the data, more than 70 percent of those who experienced profitability increases in the last 12 months have a documented personalization strategy, compared to fewer than 20 percent for those with decreased profitability.