Context
80% of marketers interviewed by Gartner regarding Marketing Personalization software admitted that they struggle to get the targeted ROI from the software they use. Even many of the users of the #1 software (the one placed by Gartner in the upper right corner of their quadrant) admitted to Gartner that the software was great in other areas, but actually disappointed them in regard to its core mission of personalization.
Value of Hyper-Personalization
We know that when software is able to drive hyper-personalized interactions with your brand, the result is significantly higher customer engagement, resulting in higher revenue, larger basket size, higher purchase frequency, better depth of purchase, lower churn, and higher overall lifetime customer value.
Brief
Today’s marketing personalization software products – including even well known market leaders – struggle to deliver on the expectations of marketing leaders. This is so for six reasons.
#1 Many such solutions are exclusively focused on ecommerce interactions -- or other channels are merely added in a trivial supporting role to the ecommerce context.
#2 Often marketing heads have to program the software with the rules and triggers that drive campaigns, rather than being able to look to the software itself for evolving insights about what rules to use, at the individual customer level.
#3 Most solutions in the market struggle mightily when faced with the cold start problem, such as when a new customer is added to the database with few revealed preferences, or when a new product is added to the lineup.
#4 Most personalization systems get locked into rules that, even at the outset, were never optimal for all value tiers of customers, and those rules become more and more out of date with time, but the system does not learn on its own, so competitive advantage drifts away.
#5 The actual recommender systems that sit under the hood of many solutions are remarkably simplistic, often using decades-old techniques that even fresh college grads could easily improve upon. This explains why they often deliver naïve recommendations.
#6 A common thread across virtually all the feedback about all the best known vendors is that they take too long to implement.
SOLUS
This presentation concludes with an offer to see a SOLUS demo. That's because SOLUS (solussoft.com) addresses all of the above six problems and also offers additional capabilities that finally deliver on the promise and value of Segment of One.
