Gartner Survey Shows Brands Risk Losing 38 Percent of Customers Because of Poor Marketing Personalization Efforts

Marketing Leaders Strive for One-to-One Personalization, But Fall Significantly Short in Most Cases

STAMFORD, Conn.--()--While most marketing leaders continue to strive for one-to-one personalization, achieving this type of tailored messaging falls short, causing most personalization efforts to fail, according to Gartner, Inc. The price of getting personalization wrong is steep. In a survey of more than 2,500 customers, more than half report they will unsubscribe from a company’s communications and 38 percent will stop doing business with a company if they find personalization efforts to be “creepy.”

“Creating personalized messages and experiences requires intimate knowledge of customer journeys, relevant content that drives action, and technology that helps deliver and measure experiences,” said Martha Mathers, managing vice president at Gartner. “Brands need to be extremely thoughtful in how they personalize their content today. Instead of utilizing every piece of customer data available, brands should focus on showing customers you can help them first, then layering in the right balance of data to boost message relevance, without making things too personal.”

Gartner research shows that the concept of providing “tailored help” to consumers offers a significant opportunity for brands to deliver tangible customer value in the forms and functionalities consumers seek.

“We define ‘tailored help’ as a message or messages designed to provide valuable assistance or support while using as few data dimensions as possible to thread the very tough needle between too inaccurate on one hand and too creepy on the other,” said Brent Adamson, distinguished vice president at Gartner.

The opportunity for improvement here is tremendous — 88 percent of surveyed consumers reported not receiving “tailored help.” And using “tailored help” messaging increases the predicted impact of the commercial benefit index (e.g., brand intent, purchase, repurchase and increased cart size) by 20 percent.

To overcome barriers to effective personalization, Gartner’s 2018 State of Personalization Report encourages marketing leaders to consider the following when creating “tailored help” content:

      1)  

Develop personalization skills: Staffing challenges are a major impediment to personalization efforts. In fact, 74 percent of marketing leaders report they struggle to scale their personalization efforts. To personalize effectively, marketing leaders must hire, train and develop key competencies for personalization including: the ability to understand consumers’ microbehaviors; know individual consumer preferences for trigger-based messages; produce content that can be versioned to meet a wide variety of consumer profiles and triggers; learn to mine nontraditional data and apply creativity to analytics; and share decision making with other disciplines.

2)

Atomize your content: Sixty-five percent of marketers indicate they “feel overwhelmed by the need to create more content to support personalization.” Meanwhile, two-thirds of B2C marketers report they are expected to show results from their personalization investments in less than a year. To effectively manage expectations and deliver on objectives, marketing leaders need to create personalized content that is broken down into smaller components based on defined messages or purpose that contributes to the larger experience.

3)

Rethink your data strategy: Data is the currency of any personalization program. However, brands find themselves balancing the need for personalized marketing messages while consumers are increasingly concerned about privacy and data usage. To overcome this challenge, brands need to rethink their data collection, notification and deployment or risk losing consumer trust and attention. Leading companies utilize their brand sites as the primary method of data collection, maintaining control over customer datasets and enabling customers to consent to usage.

4)

Learn to walk, before you run, with technology: Despite growing pressures to show results and generate returns on personalization investments, marketing leaders need to exercise caution when investing in personalization tools — especially if they lack the data foundation or internal resources to fully leverage the solution. Building the business case and organizing customer data to support the personalization tool will take time.

 

This research will be made available during Gartner’s Essential Guide to Marketing Personalization event, throughout the week of March 11, 2019, with a new piece of research unveiled each day, as well as tools to help execute your strategy. Gartner for Marketers clients can access additional details and best practices on personalization in the reports Rethinking Personalization for Maximum Impact, 2018 State of Personalization Report, Gartner L2 Intelligence: Data & Targeting 2018 and Crawl, Walk, Run: Define Your Vision, Strategy and Roadmap for Personalization.

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Contacts

Kelly Blum
571-303-5745
kelly.blum@gartner.com

Contacts

Kelly Blum
571-303-5745
kelly.blum@gartner.com