By 2025, 80 per cent of marketers who have invested in personalisation will abandon their efforts due to lack of ROI and the risk of customer data management according to Gartner. 

The Gartner report, Predicts 2020: Marketers, They’re Just Not That Into You, noted 27 per cent of marketers believe data is the key obstacle to personalisation — revealing their weaknesses in data collection, integration and protection.

Charles Golvin, senior director analyst in the Gartner for Marketers practice said, “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. 

“However, this quest has failed to meet marketers’ ambitions and, in some cases, has backfired, as consumers both directly and indirectly reject brands’ overtures.”

There are other impediments marketers face when it comes 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 per cent of the marketing budget, more than one in four marketing leaders cite technology as a major hurdle to personalisation, according to the analysts. 

Golvin said, “Consumers have developed an increasingly jaundiced eye toward marketers’ efforts to embrace them.  

“Their increasingly cluttered email inboxes and mobile phone notification centres 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.
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