The value of getting personalisation right (McKinsey's Next in Personalisation Report)

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Insight

The McKinsey Next in Personalization 2021 Report reveals that "companies who excel at demonstrating customer intimacy generate faster rates of revenue growth than their peers. And the closer organisations get to the consumer, the bigger the gains".

***Based on US Data

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Personalisation matters more now than ever before

"...companies that grow faster drive 40% more of their revenue from personalisation than their slower-growing counterparts."

Due to the growth of online during the pandemic, consumers have had more exposure than ever to ecommerce practices. 

"From web to mobile and in-person interactions, consumers now view personalisation as the default standard for engagement."

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"Companies who excel at demonstrating customer intimacy generate faster rates of revenue growth than their peers. And the closer organisations get to the consumer, the bigger the gains."

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"Personalisation is not only a crucial capability, it’s one that punches above its weight, no matter whether the company is a digital native, a brick-and-mortar player, or a behind-the-scenes producer or supplier."

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Shoppers want to be seen as individuals

• Be recognised as an individual
• Be seen as a relationship not a transaction

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Clear Rewards

Personalisation is especially effective at driving repeat engagement and loyalty over time.

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Personalisation often drives 10-15% revenue lift

The better an organisation gets at developing customer knowledge, the greater the returns could be. 

"For digitally native companies that forge a data-backed, direct-to-consumer model, personalisation isn’t just how they market, it’s how they operate."

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Relationship and long-term value leads to better upward migration, retention, and loyalty

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5 ways to accelerate personalisation and create value

• Lean into data and analytics to identify opportunities. 
• Invest in rapid activation capabilities powered by advanced analytics.
• Invest in fit-for-purpose martech and data. 
• Commit to an agile operating model. 
• Invest in talent and training to refine capabilities. 

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"Personalisation is a force multiplier—and business necessity—one that more than 70 percent of consumers now consider a basic expectation. Organisations able to build and activate the capability at scale can put customer lifetime value on a new trajectory—driving double-digit revenue growth, superior retention, and richer, more nurturing long-term relationships."

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Photo by B R on Unsplash

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