The ROI of Personalization
Investing in a personalized customer experience is a win-win situation, both for today’s businesses and for their customers. As marketers serve up seamless experiences that include personalized features such as the perfect article, product recommendation, discount, or email messages, consumers are responding with more meaningful engagements, quicker conversions, increased spending, and most importantly, ongoing loyalty.
So where else does the ROI come in? Nine out of ten consumers say that personalization has some impact on their purchasing decisions, so it is no coincidence that nearly 80% of high-performing marketers indicated that personalized strategies have boosted their revenue.
In fact, a recent survey from Kibo found that:
- Personalized home page promotions influence 85% of consumers to make a purchase
- Personalized shopping cart recommendations influence 92% of shoppers to complete a purchase
- Loyalty discounts influence 55% of customers to complete a purchase
- Targeted recommendations on product pages influencer 44% to make a purchase
Tommy Hilfiger is one great example of a brand who has embraced personalization in their customer experiences across channels. Here’s their story:
Tommy Hilfiger already offered a personalized experience for their military customers with an in-store discount, but did not provide the same experience in their online shop. In order to help unite their e-commerce site and their stores with personalized discounting messages, Tommy Hilfiger implemented SheerID’s eligibility verification into their shopping cart so that their military customers could qualify for the discount no matter what channel they wanted to shop through.
In addition to bringing their military discount online, the team at Tommy Hilfiger also established two new evergreen offers of exclusive discounts for teachers and students online.
Associate Manager of Online Marketing at Tommy Hilfiger, Catherine Weiss, said “the biggest benefit we’ve seen from SheerID’s eligibility verification services are that it allows us to align Tommy.com with our in-store discounting messages and segment our email communications.”
The two most noticeable results that Tommy Hilfiger saw were:
- The ability to capture the affiliations (student, teacher, military) of their customers so they can provide more personalized offers and relevant messaging in the future.
- An average of $15 ROI from their personalized campaign.
Long story short, personalization = ROI. Brands are comprised of all the interactions with their customers throughout each of their channels. It’s essential that they create a customer experience that is not only unified throughout every channel, but also personalized in order to make the best experience possible.