Personalization Programs Increase Leading Companies’ Revenues by 6% to 10%

According to the Boston Consulting Group (BCG), brands that create personalized experiences by integrating advanced digital technologies and propriety data are seeing revenues increase by 6% to 10%, 2-3 times faster than those that do not. BCG expects personalization leaders to capture a disproportionate share of category profits while slow movers will lose customers and profits. Retail is one of the three sectors that BCG believes will push a revenue shift of $800 billion to the 15% of companies that get personalization right.

Steve Mitchelmore, a BCG partner, said, “For incumbents to defend – and expand – share, they need to reimagine their business with an individualized value proposition at the core, merging physical and digital experiences to deepen their customer connections.”

Although, businesses have started to include some form of personalization within their business models, only 15% of companies can be considered true personalization leaders, most of which are tech companies and digital natives. Sean Collins, Chief Investment Officer of BCG Digital Ventures comments, “These companies build strong customer loyalty using both traditional vehicles, such as loyalty programs, and new models, like ‘free’ and short-notice delivery, automatic replenishment, and other forms of convenience. The deeper direct connection enables digital natives to more fully understand what customers need and create new ways to serve them, both on their own and by working with their suppliers.”

If you are a local retailer, merchant or publication looking to personalize your customers’ experience, we would love to collaborate with you!

We're a group of graduate business students exploring the importance of local newspapers and news sites, with a focus on sustainability and related business practices. We're hoping to build a community of stakeholders to help and support our research. Please reach out if you're available for an interview to share your thoughts and experiences on the topic.

Read more at: https://www.bcg.com/press/8may2017-profiting-from-personalization

Read full article at: https://www.bcg.com/publications/2017/retail-marketing-sales-profiting-personalization