How Marketers Can Overcome the Biggest Barriers to Personalization
Customers make decisions each day, many of which impact a company's bottom line. The opportunity for marketers is to capitalize on every decision that a customer makes by targeting the optimal experience that creates individual customer value and drives better campaign performance.
Today's CMOs know that optimizing customer experiences at scale unlocks opportunities to drive new revenues and retention. Yet when it comes to personalization, it's often the traditional campaign process that stands in the way. To discover and then deliver optimal customer experiences in a way that drives systematic performance improvement, marketers must overcome a number of barriers.
Testing and Analysis Bottlenecks
The traditional campaign process places limitations on what can and can't be tested and analyzed. Marketers also face challenges with how they run and analyze campaigns. Frequently marketing campaign performance is measured based on the response rate to an offer. This measurement can often produce a "false positive" meaning that while a campaign seemed to produce good results, it may have had a negative consequence in the overall customer relationship e.g., cannibalizing existing revenue. The difficulty of optimizing customer experience against long-term performance indicators is a barrier to targeting experiences that maximize customer lifetime value.
There's also the sheer number of campaigns to consider. A comprehensive product catalog combined with all the potential upsell and cross-sell opportunities increases the probability of overlapping campaigns that the customer frequently interprets as spamming. The unintended spamming leads not only to lower customer engagement and brand loyalty but makes the optimization of the targeting much more difficult as relevant offers may be ignored.
For most marketing teams, the demand for optimization is constantly outstripping the supply of skills and resources. Consequently, missing resources severely limit the discovery and targeting of optimal experiences. Valuable resources are tied to the labor-intensive process of extracting, formatting and analyzing existing campaign results rather than investigating and innovating new retention and growth campaigns.