For many marketers, having department budgets of more than $1 million would be an absolute dream. Imagine all the fantastic possibilities for direct marketing programs with segmentation, attribution and so on? Yet "63 percent of those with marketing budgets exceeding $1 million do not send out personalized email offers, and the same is true for 76 percent of marketers with less than $1 million budgets," according to Santa Monica, Calif.-based marketing software provider Retention Science.
In research to be released next week, Retention Science surveyed nearly 140 executives at retail and e-commerce companies about personalization, testing and optimization. What Retention Science found was most of even the big businesses haven't grasped the concepts.
"We would assume that most big e-tailers would be far ahead in personalization, metrics tracking and campaign optimization," says Jerry Jao, CEO of Retention Science, in the research announcement. "But our survey findings show that's not necessarily the case."
More findings include:
- 31 percent of marketers with more than $1 million budgets don't personalize their websites "in any way," and of the 69 percent who do, 21 percent give visitors personalized offers;
- 25 percent don't A/B or multivariate test; and
- More than half of marketers with $1 million-plus budgets, and 77 percent of marketers with sub-$1 million budgets don't actively track customer lifetime value.
Jao provides these personalization, testing and optimization tips to Target Marketing on Thursday:
- "The go-to offer used to entice repeat purchases is percentage discounts (10 percent off). Instead, you can increase order margins by offering a free 2-day shipping upgrade to your most loyal customers who are going to purchase regardless of the offer sent."
- "Advanced marketing metrics, such as churn rate, customer lifetime value and per-visit value are used by leading e-commerce companies to ensure their marketing programs are operating optimally, yet are ignored by the majority of marketers. Invest in tracking these metrics as well to stay ahead of the competition."
- "Most marketers know that A/B testing email subject lines and content is an easy way to make your marketing smarter. Up your game by also A/B and multivariate testing website content and offers as well, particularly on your home page and landing pages."
- "Personalization, whether on a website, email or other channels, has been shown to greatly increase the effectiveness of marketing campaigns. Go the extra step by creating campaigns with personalized offers depending on what customers have responded to in the past."
Why are so few marketers surveyed adept at personalization, testing and optimization?