Retailers have warmed up to personalization, with 86% now using it, according toThe Value of Personalization Optimization for Retailers, a study from Liveclicker done in partnership with The Relevancy Group. But most of the retailers are stuck at a rudimentary level.
All 86% use first name and 66% utilize subject-line personalization — " 'table stakes' that do little to move the needle and drive business objectives," the study says.
The numbers go down for more sophisticated applications:
Overall personalization usage varies by product category. At 78%, the grocery/food/beverage field is the least likely to deploy personalization,
The music/media/movies is first with a 96% usage rate, and the arts and crafts and gardening categories are tied for second with 95% apiece.
Tied for third, with 91% each, are the baby/child/toys and hiking/outdoor segments.
What’s delaying personalization adoption? The biggest challenges are security and IT issues:
The research shows that “these advanced tactics absolutely pay off in the form of real revenue for the company,” Daniels adds.
Clearly, they have to do better, given the threat from Amazon. Retailers are using these tactics to compete with the behemoth:
The study asserts that firms using advanced personalization methods pull in $20 in revenue for every $1 spent, and 17% more than firms that are not at that level.
The data is based on survey input from 147 retailers.