What’s the ROI of Email Personalization?

by Damian Borichevsky, SVP Customer Success & Business DevelopmentSep 5, 2017

What's the ROI of email personalization

Email marketing is going through a renaissance. Today, more and more consumers are staying connected to their inboxes 24/7, which can be extremely beneficial to email marketers. But amidst the email marketing resurgence, there’s one lingering challenge that continues to keep email marketers up at night: personalization.

Personalization remains one of the top email marketing challenges. While brands that leverage personalization in their email programs enjoy higher order values, conversion rates and click-to-open rates, studies indicate that many struggle to make personalization happen. Instead, they settle for easy-to-implement tactics that seem to check the “personalization” box,  but don’t unlock significant business results. For example, studies show 78% of executive marketers currently leverage basic first name personalization to customize messages on an individual level, but does anyone really believe this alone can be counted as personalization?

74% of consumers are frustrated by irrelevant content, yet email marketers are still using the same broad segmentation approaches that deliver just that—more than 50% of marketers surveyed report they are not using personalization technology to select and serve personalized content to newsletter subscribers. While these tactics require the right technology to effectively personalize customer experiences with content, they have the greatest potential to drive email engagement, positive customer experiences, and ultimately, business goals for marketers.

The ROI of email personalization
When implemented with the right technology, personalization is proven to drastically improve engagement and conversions, especially for email marketing. Experts found that engagement rates for marketers who leverage personalized content and offers in their email programs are universally higher than their counterparts who do not. The average order value from the personalized emails was 5% higher, and conversion rates were 6% higher.

Many brands have seen similar success with personalization. When leveraging email personalization technology, a leading retailer saw an average 25% lift in click-to-open rates. Also, a leading CPG food brand discovered that visitors who engaged with personalized content are 59% more likely to consume 3+ pieces of content. They also found that visitors who consumed 3+ pieces of content were 6X more likely to click calls to action like “Buy Now” than visitors who only consumed 0 to 1 pieces of content.

These results of personalization can have a direct impact on the bottom line—marketers who leverage deep personalization can drive upwards of 17% more revenue through their email programs than the average marketer. That’s money left on the table for email marketers who do not employ deep 1:1 personalization in their email programs.

Download our guide: How to Master Individualization to Delight Your Customers for best practices for delivering 1:1 personalized content experiences across every channel.