2019 Trends in Personalization Researchscape International Evergage, Inc. 2 SURVEY RESULTS PAGE 2 ©2019 RESEARCHSCAPE INTERNATIONAL AND EVERGAGE, INC. EXECUTIVE SUMARY To help organizations better understand the prevailing attitudes, key benefits, current usage and future plans related to personalization, Evergage and Researchscape International surveyed 314 marketing profesionals acros industries and countries, although predominantly in the U.S. The online survey was fielded from February 21 to March 21, 2019. Additional details about the survey respondents can be found in the firmographics section of the report. Marketers overwhelmingly agre (98%) that personalization helps advance customer relationships, with 70% claiming it has a “strong” or “extremely strong” impact. And 85% state that their customers and prospects expect a personalized experience. When asked what drives personalization within their own organizations, marketers cite delivering beter customer experiences (8%), increasing loyalty (59%) and generating measurable lift/ROI (50%) as top motivating factors. Email remains the most personalized chanel (78%) this year, folowed by website (58%), in-person (42%), online advertising (35), mobile ap (28%) and web application (19%). While marketers are certainly dealing with some chalenges pertaining to personalization (only 16% are “very” or “extremely” satisfied with the level of personalization in their marketing eforts), they are becoming more sophisticated in their aproach. Usage of machine learning/algorithmic personalization is up from 26% last year to 40% this year. The use of emails trigered based on a persons on-site behavior is up from 35% last year to 45% this year. And cros-channel connections have improved: the percentage of marketers who say their company has “no channels conected” declined from 27% to 21%, while the percentage of those who say they have “a few channels connected” rose from 46% to 53%. Importantly, marketers continue to se results from personalization. The majority (90%) report a measurable lift from their personalization eforts. More than half (58%) experience a lift of more than 10%, while 15% report a lift of over 30%. This success is translating to continued suport and investment. The vast majority of organizations (97%) plan to maintain or increase their personalization budgets this year, with 48% saying they plan to increase their investments (up 11 points from 37% last year). In addition, thre quarters of respondents (74%) believe personalization should be a bigger priority in their organization than it is currently. 3 SURVEY RESULTS PAGE 3 ©2019 RESEARCHSCAPE INTERNATIONAL AND EVERGAGE, INC. ATTITUDES TOWARD PERSONALIZATION The vast majority of marketers (98%) believe that personalization has at least some impact on advancing customer relationships, while 7 in 10 (70%) believe personalization has a “strong” or “extremely strong” impact on advancing customer relationships. What is the impact, if any, of personalization on advancing customer relationships? Sample Size: 314 (Al Respondents) Total does not ad up to 10% due to rounding. Among marketers who employ machine learning (which this report will cover in more depth later on), 78% described personalizations impact on customer relationships as “strong” or “extremely strong.” 2%6%23%52%18%0% 25% 50% 75% 100%No impactSlight impactModerate impactStrong impactExtremely strong impact4 SURVEY RESULTS PAGE 4 ©2019 RESEARCHSCAPE INTERNATIONAL AND EVERGAGE, INC. Additionaly, the majority of marketers (85%) think their prospects or customers expect a personalized experience. Do you think your prospects/customers expect a personalized experience? Sample Size: 314 (Al Respondents) 85%15%YesNo5 SURVEY RESULTS PAGE 5 ©2019 RESEARCHSCAPE INTERNATIONAL AND EVERGAGE, INC. However, marketers dont fel that the industry is delivering personalization to customers as efectively as it should just yet. Only 32% believe that the marketers are currently getting personalization right. Would you agre or disagre with the folowing statement: Marketers are getting personalization right. Sample Size: 314 (Al Respondents) 68%32%Disagre Agre6 SURVEY RESULTS PAGE 6 ©2019 RESEARCHSCAPE INTERNATIONAL AND EVERGAGE, INC. PERSONALIZATION USAGE & SATISFACTION Just over three quarters of marketers (78%) use personalization in their emails, making it the most popular digital channel for personalization. Six out of ten (58%) use personalization on their websites, while four out of ten (42%) use it for in-person experiences. Personalization in online advertising (35%), mobile aps (28%), and web aplications (19%) is less frequent. In which of the folowing digital channels are you using personalization? Sample Size: 314 (Al Respondents) Respondents could select multiple options 78%58%42%35%28%19%7%0% 25% 50% 75% 100%EmailWebsiteIn-personOnline advertisingMobile apWeb aplicationNone of the above7 SURVEY RESULTS PAGE 7 ©2019 RESEARCHSCAPE INTERNATIONAL AND EVERGAGE, INC. The main reason busineses leverage personalization is to deliver beter customer experiences (88%). Increasing loyalty (59%), generating measurable lift/ROI (50%), and driving more leads (4%) are also top drivers for organizations. Also noteworthy is that while 85% of companies acknowledge customers or prospects expect personalization, only about half as many (43%) are driven to implement it because of that expectation. What are the drivers of personalization in your organization? Sample Size: 271 (86% of Respondents) Respondents could select multiple options 88%59%50%44%43%25%2%0% 25% 50% 75%100%Deliver beter customer experiencesIncrease loyaltyGenerate measurable lift/ROIDrive more leadsCustomers/prospects expect itCompetitive presuresOther (please explain):8 SURVEY RESULTS PAGE 8 ©2019 RESEARCHSCAPE INTERNATIONAL AND EVERGAGE, INC. B2C companies are more driven to use personalization to generate measurable lift/ROI (61%) than B2B companies (48%) and hybrids (50%), which market to both consumers and busineses. B2B companies are more likely to use personalization to drive more leads (52% compared to 36% of B2Cs and 4% of hybrids). Crostab: What are the drivers of personalization in your organization? Sample Size: 271 (86% of Respondents) 8945324855528639336158368441205058440%25%50%75%100%DeliverbetercustomerexperiencesCustomers/prospectsexpectitCompetiivepresuresGeneratemeasurablelift/ROIIncreaseloyaltyDrivemoreleadsB2BB2CBoth9 SURVEY RESULTS PAGE 9 ©2019 RESEARCHSCAPE INTERNATIONAL AND EVERGAGE, INC. Marketing profesionals sem to lack confidence in their personalization strategies. Less than a fifth (18%) report they are very or extremely confident that they have a successful strategy for personalization. Four in ten (40%) are moderately confident they have a sucesful strategy, while just as many (41%) have no or only slight confidence about their personalization plans. How confident are you that you have a sucesful strategy for personalization? Sample Size: 272 (87% of Respondents) Total does not ad up to 10% due to rounding. 15%26%40%15%3%0% 25% 50% 75% 100%Not confidentSlightly confidentModerately confidentVery confidentExtremely confident10 SURVEY RESULTS PAGE 10 ©2019 RESEARCHSCAPE INTERNATIONAL AND EVERGAGE, INC. When loking to marketers satisfaction levels with the level of personalization in their marketing eforts, just a sixth (16%) are very or extremely satisfied. Half (50%) say they are not satisfied or only slightly satisfied, while a third (34%) say they are moderately satisfied. Overall, how satisfied are you with the level of personalization in your marketing eforts? Sample Size: 272 (87% of Respondents) 21%29%34%14%2%0% 25% 50% 75% 100%Not satisfiedSlightly satisfiedModerately satisfiedVery satisfiedExtremely satisfied