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Personalization can pay off in holiday time, claims study

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October 14, 2019

Customers acquired during a previous holiday season are more than twice as likely to convert the next holiday season compared to other customers. That finding, from a Monetate study, illustrates the value of identifying valuable audiences and that automated personalization can grow the returning customers into 'best' customers, according to a press release.

"As retailers get ready for 2019 holidays, this research shows how important it is to use technology that can analyze and segment valuable audiences at scale. With insights like this, marketers can be planning for the long-term customer relationship," said Lisa Kalscheur, chief marketing officer, at Monetate, in the release. "We found that retained holiday customers are significantly more valuable during the next holiday season, which should be informing personalization efforts that go well beyond the next few months."

Monetate also found that consumers, converted after coming from Facebook and Instagram, showed much higher conversion rate growth one year later, and is growing in size year over year for most retailers.

"Historically, marketers have had to design their holiday marketing campaigns to appeal to the widest audience possible, which has left out key high-value groups such as the growing Instagram shopper audience," said Kalscheur. "With the right approach, marketers can find these groups and create personalization campaigns that appeal to them specifically, creating opportunities for more growth."