The Compound Value of Personalization

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Ideas and Strategies for Real-Time Personalization
The Compound Value of Personalization

June 7, 2016 by

As someone who’s worked in digital marketing for more than a decade, I’ve used my share of tools to manage content, distribute email campaigns, monitor web analytics, and deploy digital ads. And where each solution has been important to the companies I’ve worked for, once implemented, they tend to offer rather modest ROI gains.

To be fair, these solutions do accrue value – like a utility service accrues value – in that companies need to share content, send emails, run ads, and monitor results, but, over time, it’s rare to expect a significant uptick in performance. For instance, the open or clickthrough rates for an email campaign may increase slightly (over the previous campaign) whereas tweaking keywords might result in a slight refinement in PPC optimization.

In that respect, I would argue that the aforementioned solutions are similar to investing in a CD or bond where an initial investment will yield stable, predictable returns at a low rate within a given timeframe. This is true for most marketing technologies, except for real-time personalization.

In keeping with the investment analogy, utilizing a personalization platform is like investing in an aristocrat dividend stock, defined as a type of stock with stable betas and a proven track record of both paying and increasing dividends. If reinvesting dividends, it’s not uncommon for investors to realize 10-12% or more in annualized returns (over time) on their principal value. For those seeking higher returns, it’s a better choice than a 10-year CD, currently yielding around 2.3%.

With Evergage, companies can start slowly by personalizing experiences based on a visitor’s geography, industry, referring source, or campaign. Though simple, these campaigns are proven to show lift – the kind of lift you might expect when you first introduce a PPC or email campaign. When ready, marketers can then use the same platform to deliver cross-channel personalization and/or introduce machine-learning tactics to dynamically promote content, deliver 1:1 product recommendations, or personalize onsite search for each visitor.

One of a growing list of customers benefiting from Evergage is Gardener’s Supply Company. After first realizing lift with rule-based campaigns several years ago, today the company also leverages automated techniques and 1:1 recommendations to increase conversions. Read up on how Gardener’s has used Evergage to capitalize on the value of personalization to generate compounding returns year after year in our newly updated case study.

There are countless ways Evergage can be used to increase value across a company’s digital properties...with each incremental improvement – like aristocrat dividend stocks – delivering compounding returns for marketers.

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