Retailers Still Struggle with Personalization 

And failure can be costly

Author: Rimma Kats

January 11, 2018

Retailers have been racing to crack the personalization code for some time.

For most, personalization is a key to success. In fact, more than nine in 10 US retailers surveyed by RIS News said personalization capabilities are at least somewhat important to their company's business goals. And 39% of respondents said personalization was extremely important.

Many respondents employ personalization in hopes of increasing sales, improving overall loyalty, and of course making sure customer engagement levels are high. Improving these capabilities, however, isn’t always an easy task for retailers. 

Nearly seven in 10 (69%) of those polled said a lack of advanced technologies is holding them back from making progress with their personalization efforts, and another 47% said managing personalization capabilities across channels was an obstacle.

Others found the inability to measure effectiveness to be an obstacle.

It’s important for retailers to get personalization right, because the price of personalization failure is costly. According to a survey from Accenture, 41% of US consumers said they ditched a company because of "poor personalization and lack of trust." Speaking in financial terms, that equates to $756 billion in lost retail and brand sales in 2017 in the US alone. Globally, that figure is $2.5 trillion, Accenture reported.