The Three Stages Of Marketing Personalization
At Jivox, we’ve loosely translated the collected experience with multiple customers in the retail and CPG industry into three stages of personalization – Stage I, II and III. Each stage addresses a combination of how sophisticated your personalization is along with the amount of data you have on your target audience. Some brands have only just started personalizing ads to individual consumers (Stage I) while others have a personalized customer journey locked down across the entire spectrum of marketing channels (Stage III). Irrespective of which stage brands are in, they’ll need KPIs that allow them to grow to the next stage, not ones that expect too much of one metric or not enough of another.
An important point to note here, is that while these metrics are a great starting point, they will vary across brands as every brand is unique. There are always outliers that will need to be more discerning about the KPIs they use as they may have different objectives and how campaign performance aligns with business goals..
In part 1 of our Mastering Metrics series, we’re focusing on the KPIs we’ve seen grow successfully across the marketing funnel and at each stage of personalization, in the retail, e-commerce and CPG industries within our customer base.
Ask yourself these questions
Which stage of personalization describes my brand?
At this stage, what are my marketing campaign’s objectives?
What KPIs are relevant for measuring success against these objectives?
By the end of this blog, you should have answers to the above questions with which you’ll be able to check the health of your personalization strategy effectively and how these KPIs are helping your brand grow their marketing ROI.
Marketing KPIs For Retail & E-Commerce
Brands in this space are fortunate to have access to a lot of data on their customers.
This will help move along their personalization efforts as more granular data points mean more precise insights into a broad range of metrics that can help identify where to advance their personalization strategy further. And that benefit will aid the conversion-centric metrics that retail and e-commerce brands typically focus on.
At this stage, brands might be running simple prospecting campaigns and basic retargeting campaigns due to lack of data. Brands are running prospecting campaigns to gather more data to fuel their retargeting campaigns. The main focus here is driving traffic to the brand’s website to capture data for more advanced retargeting campaigns. Brands will need to establish enticing offers in their ads to convince consumers to come back to their site.
CTR is important at this stage for brands to assess the quality of their ads and landing page visits help brands understand whether the page has sufficient information and is designed in a user-friendly manner for consumers to make buying decisions.
Essential KPIs: Clickthrough rate, website or landing page visits, basic conversions.
After brands have gathered a sufficient amount of data, they’re able to run more advanced retargeting campaigns. At this stage, brands are deep into personalizing ads with more relevant assets and messaging to the consumer. Conversion rates will be climbing as the brand’s ads hit the right audience with the right message.
Brands will have to make sure they’ve established a sufficient workflow with updated product feeds to make sure they’re only retargeting consumers with products that are relevant, in stock, or on offer. They’ll also need constant updates on pricing so that the ads can reflect the most relevant promotions or brick and mortar pricing accurately.
Campaigns running at this stage will give brands access to a lot more data points, taking them a step further in identifying which products are performing well in comparison to under-performers.
KPIs here will be metrics at the point of sale. The goal will ultimately be related directly to conversions.
Essential KPIs: Product search, Time spent on landing page, Add-to-cart, Initiate checkout, number of complete orders, Cart conversion rates.
This is where brands are starting to master their personalization strategies and are now bringing in smart efficiencies to boost their marketing ROI across multiple channels. They’re likely using AI to recommend products to consumers and focusing on a streamlined workflow in their product feeds.
They’ll be able to adjust campaigns to reflect new promotions within hours by making simple adjustments to their product and offer feeds.
Additionally, these brands will have a significant set of first-party data and identifiers across platforms and channels, so they can assess the lifetime value of their customers.
With DCO, brands at this stage get access to granular data points so they can understand which channels and formats are performing well and need to be optimized further. They’ll be thoroughly reaping the benefits of optimized digital marketing campaigns.
Essential KPIs: Conversion rates, cost per conversion, average cart value, revenue, customer lifetime value, ROI, ROAS, Profitability, marketing efficiency ratio.