Every time you fail to engage a potential buyer, you are losing revenue.
Yet, only 20% of companies are using a strategy that's PROVEN to be one of the most effective for keeping buyers engaged. Are you one of them?
What You'll Learn from this Article:
Here’s a crazy statistic.
Personalization improves conversion and engagement for 87% of companies,
yet only 20% of companies are using web personalization to improve engagement.
Many companies, especially those with smaller teams or budgets, think personalization is too complicated, or that they don’t have the resources to manage it.
In reality, the Return on Investment (ROI) for web personalization, even for companies with limited resources, is often higher than other, more traditional marketing programs. Let’s look at why it’s so effective.
One to One Marketing for Presidents
The Presidential arena, with its massive budgets and resources, is a test case for personalization at its most ambitious levels. Both Hilary Clinton and Donald Trump’s campaign teams leveraged vast amounts of voter data, combined with sophisticated ad and email targeting to hyper-target their message to voters.
The scope and complexity of one to one marketing in political campaigns is growing at a staggering rate. In 2012, Obama’s campaign employed 50 data scientists who developed 9 predictive models for voter segments. This was ground-breaking data science in 2012.
Just four years later, the Ted Cruz campaign used 1,809 predictive models. According to Chris Wilson, CEO of WPA Research and head of Data & Analytics for Ted Cruz for President, “In 2012 there were a few hundred piece of data you could append to a voter file. By 2016, it was a few thousand. In some states, we had more than 10,000 pieces of information available to append to the voter file.”
Trump’s team tested 175,000 different message variations on Facebook to prepare for his third presidential debate with Hilary Clinton.
Political candidates are willing to make enormous financial and resource investments in personalization because hyper-targeting drives huge payoffs in user engagement, conversion, and ROI.
The August 2016 Jivox Benchmark Report analyzed performance data from over a billion ad impressions. They determined that personalized digital ads perform 3.3x better than Google’s display ad benchmark. Personalized digital ads also deliver measurably better Return on Ad Spend (ROAS). Autopilot found that a personalized offer quadruples the likelihood that a consumer will engage.
Personalization for Real Marketers
Trump spent $15M on data and personalization in the last 4 months of the Presidential race, and it’s rumored that Hilary Clinton employed close to 1,000 data scientists. If you’re a mid-market company, you don’t have the resources to develop and manage thousands of segments and multivariate tests.
Are mid-market businesses doomed to lose market share to Enterprise businesses with deeper pockets? Not necessarily.
Venture capital firms have invested nearly $300M in personalization tools in the last 18 months. Many of these companies are developing sophisticated AI and machine-learning platforms that reduce the overhead costs of employing personalization. Other companies offer personalization as a value-added service.
Automation and value-adds are the key to mid-market businesses remaining competitive in web personalization. Below are the results of our research on the best companies building smart and affordable platforms in this area.
Click a logo to jump to a platform review:
Could be a fit for growing businesses, but not entirely clear:
Optimizely: Optimizely has built a stellar reputation on its testing & experimentation platform, which changed the testing market by putting variation design right into the hands of marketers. In October 2016 Optimizely announced the launch of Optimizely X, which “allows experiments and personalized marketing across any platform, device, or channel” (even TV.) What landed Optimizely in this category of providers was the lack of information available on how much personalization work Optimizely is able to automate, or what types of professional services are available to make personalization an option for the typically resource-strapped growing business. While Optimizely does appear to be focusing more on larger business recently, it was reported in Oct. 2016 that Optimizely X pricing starts at $999/mo. Worth investigating, based on the strength of their brand.
Watch Category: These personalization companies received significant funding in 2015 / 2016:
Now it’s your turn.
Have you starting using behavioral targeting or web personalization already? What were your challenges in getting started? What were your results?
Please share your recommendations, frustrations, strategies and wisdom with all of us via comments below.
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Attributions: Trump supporters - CC image courtesy of jbouie on Flickr
Trisha Merriam is VP of Demand Generation at SWOPtimize, focused on helping companies optimize their digital marketing strategy for higher volume and better quality leads. We are Your Partner in Awesome.