Digital transformation

Be the internal champion that drives meaningful change in your organisation

Start here Digital transformation
Explore our E-commerce and Retail Digital Marketing Toolkit

What is the ROI of website personalization?

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.

By Dave Chaffey

Digital strategist Dr Dave Chaffey is co-founder and Content Director of Smart Insights. Dave is editor of the 100+ templates, ebooks and courses in the digital marketing resource library created by our team of 25+ Digital Marketing experts. Our resources are used by our Premium members in more than 100 countries to Plan, Manage and Optimize their digital marketing. Free members can access our sample templates here. Please connect on LinkedIn to receive updates or ask me a question. For my full profile and other social networks, see the Dave Chaffey profile page on Smart Insights. Dave is a keynote speaker, trainer and consultant who is author of 5 bestselling books on digital marketing including Digital Marketing Excellence and Digital Marketing: Strategy, Implementation and Practice. In 2004 he was recognised by the Chartered Institute of Marketing as one of 50 marketing ‘gurus’ worldwide who have helped shape the future of marketing.

Start the discussion on our community and social networks

Turbocharge your results with our

E-commerce/retail Toolkit

Get FREE marketing planning templates

Start your Digital Marketing Plan today with our Free membership.

  • FREE fast start guides to review your approach
  • FREE digital marketing plan templates
  • FREE alerts on the latest developments

Need help with your Ecommerce?

Get more from your digital marketing with in-company or remote training and consultancy from Smart Insights

Get FREE marketing planning templates

Start your Digital Marketing Plan today with our Free membership.

  • FREE fast start guides to review your approach
  • FREE digital marketing plan templates
  • FREE alerts on the latest developments

Recommended Blog Posts

Popular Blog Posts