Most organizations realize the value of personalized and targeted marketing going forward and understand the strong linkage between marketing and revenue. But the majority has yet to utilize true targeted and or personalized marketing techniques, according to report presented at this month’s iMedia Summit by Denise Garcia, GartnerG2’s principal analyst, media and advertising.
The study was designed to identify trends in mass, targeted and personalized marketing. Gartner G2, along with iMedia Communications and the Wharton School of the University of Pennsylvania, surveyed 212 U.S. marketing professionals from B2B and B2C companies of various sizes, with marketing budgets ranging from $1 million to $50 million plus. The marketers’ strategies were split between being brand and sales focused.
Garcia said the survey found that personalized marketing is increasing in importance, as represented on the following chart, which maps responses to the statement “Personalized marketing initiatives will be important to our organization in the future.”
The survey also showed that advertising and marketing initiatives are critical to these companies’ revenue and sales growth. In the table below, they were asked to respond to: “Advertising and marketing are critical to meeting our organizations sales and revenue goals.”
“A third finding is that the majority of these marketers don’t believe that concerns about customer/prospect complaints have slowed their use of personalized marketing,” Garcia said. “Indeed, most report benefits to personalization that include increased customer retention and reduced costs.”
Some of those benefits include:
 |
|
|
| More efficient use of customer/prospect time |
44% |
| Increased customer retention |
43% |
| Overall increases in revenue |
43% |
| Increase average time spent at site by prospects/clients |
42% |
| More efficient use of employee time |
38% |
| Increased number of Web site visitors |
37% |
| Shortened sales cycle |
35% |
| Improved Web site registration rate |
34% |
| More efficient use of partner time |
33% |
| Reduced costs |
26% |
| Increased margin of average sale |
25% |
| |
|
They know it works, but what’s next? Garcia says there are numerous techniques for personalization that, although not being utilized today by a large number of marketers are slated for use this year:
|
|
|
|
NOT IN USE |
2004 PLANS |
| Clickstream data to dynamically change Web site content |
73% |
23% |
| Collaborative filtering to classify visitors and serve content |
72% |
25% |
| Keyword query to change content |
67% |
25% |
| Give Web site visitors control over content from set preferences |
62% |
35% |
| Demographic personalization to tailor online messages |
62% |
31% |
| Geographic personalization to tailor online messages |
60% |
29% |
| Registration data to change Web site content |
59% |
37% |
| Geographic personalization to tailor messages in traditional media |
54% |
34% |
| Demographic personalization to tailor messages in traditional media |
51% |
35% |
| Address customers/prospects by name in electronic communication |
38% |
49% |
| Address customers/prospects by name in print communication |
32% |
44% |
| |
|
Garcia told the audience, “Based on the findings, I recommend advertisers focus in the short- to medium-term on targeted marketed rather than personalized marketing, using personalization and customization techniques to gain a competitive edge, differentiate brand and strengthen customer relationships. Of course, they also should initiate ROI measures to evaluate their various marketing strategies.
“CRM and personalized marketing vendors, on the other hand, need to realize the minimal understanding in business that’s currently out there about personalized and targeted marketing strategies and be prepared to educate potential customers prior to evaluating sales potential of prospects. They should assume that early targeted and personalized marketing efforts will target existing customers.”
