April 19, 2017
Monetate’s research shows that only 6% of organizations are advanced in implementing their personalization strategy. This is particularly frustrating because marketers acknowledge that personalizing communications is a worthy goal. We know it increases loyalty, drives higher conversions and grows revenue. Yet, when it comes to executing against this vision, the journey to personalization is deemed a challenging one.
In “Artificial Intelligence Delivers Mass Personalization in Commerce”Constellation Research analyst, R. Ray Wang, discusses four reasons personalization efforts don’t scale with today’s technology and knowledge, ultimately failing to deliver on expectations.
Stakeholders expect mass personalization - an omni-channel approach alone is insufficient to meet customer expectations
Lack of relevance leads to lack of engagement - contextual relevance is essential to driving impact. In fact, the report points out that marketing campaigns without content relevancy have an 83% lower response rate
Manual management of personalization overwhelms most organizations - being responsive to individuals requires automated processes at large scale
Static systems miss emerging market shifts - legacy systems fail to adapt to new trends & insights
But don’t fear, the report points out that, “AI driven smart services deliver on the promise of mass personalization at scale.” Solutions that leverage modern machine learning capabilities are constantly learning and adapting to consumer behavior providing context across all seven critical gates.
You can read the full study, which includes 10 ways to overcome personalization challenges, here.