Gartner Predicts 80% of Marketers Will Abandon Personalisation Efforts by 2025
By 2025, 80% of marketers who have invested in personalisation will abandon their efforts due to lack of ROI, the perils of customer data management or both, according to Gartner, Inc. In fact, 27% of marketers believe data is the key obstacle to personalisation — revealing their weaknesses in data collection, integration and protection.
“Personal data has long been the fuel that fires marketing at every stage of the customer journey, and the drive to find new forms of fuel and devise new ways to leverage them seems to be boundless,” said Charles Golvin, senior director analyst in the Gartner for Marketers practice. “However, this quest has failed to meet marketers’ ambitions and, in some cases, has backfired, as consumers both directly and indirectly reject brands’ overtures.”
Marketers face other impediments to personalisation success including the continuing decline in consumer trust, increased scrutiny by regulators and tracking barriers erected by tech companies. While personalisation comprises 14% of the marketing budget, more than one in four marketing leaders cite technology as a major hurdle to personalisation.
“Consumers have developed an increasingly jaundiced eye toward marketers’ efforts to embrace them,” said Mr. Golvin. “Their increasingly cluttered email inboxes and mobile phone notification centers may lead them to ignore even the most carefully personalised and contextualised message. Marketers must really adopt the basics when it comes to test and learn before investing in personalisation technology and new tactics.”
Gartner has a number of recommendations for marketing leaders evaluating their personalisation efforts, including:Leverage a pilot or proof of concept (POC) with a vendor before investing in a personalisation tool. Go back to the basics and test tailored recommendations at the segment level to avoid unnecessary or premature investment in a personalisation engine.
- Grow personalisation efforts from a set of tactics or tools to a capability by focusing on strategic planning, use case development and consent management as part of a personalisation roadmap.
- Collaborate with cross-functional teams to align personalisation efforts and increase momentum. Sharing control of personalisation efforts can lead to shared insight and expand collective impact and ROI.
- Adopt pertinent technology early specifically predictive personalisation technology.
Predictive personalisation software (PPS), like SwiftERM, was purpose built for ecommerce. Selecting products most pertinent to each individual consumer. It identifies products with greatest buying propensity for each individual, and then sends them details to provoke that purchase. It is the highest ROI in digital marketing.
What is most significant is that it is 100% automatic so site owners need not be involved with data-collection on indeed implementation of the analytics used to process these Big Data volumes, into what is the highest return in marketing.
Other Gartner predictions to help marketers adjust to rapidly evolving customer behaviors and plan accordingly include:
By 2023, chief marketing officer (CMO) budget allocation on influencer marketing will decrease by a third as consumers continue to lose trust in brands and entities they don’t personally know.
- By 2024, artificial intelligence identification of emotions will influence more than half of the online advertisements you see.
- By 2022, 25% of marketing departments will have a dedicated behavioral scientist or ethnographer as part of their full-time staff.