E-mail Personalization Increases Average Order Values by 57 Percent, Study Finds


August 22, 2008

Organizations that use e-mail personalization techniques yield 57 percent higher average order values as compared to nonpersonalized e-mail.

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This was a key finding from a recent study titled "Email Marketing: Get Personal with Your Customers," published by the Aberdeen Group, a Harte-Hanks company.

Personalization techniques allow organizations to develop highly personalized e-mail marketing campaigns by incorporating customer profile information, segmentation or demographic behavior, channel behavior, purchase history, personalized product or service recommendations, online activity, and other attributes from customer databases.

The study also revealed companies that personalize e-mail messages are more than twice as likely to target smaller customer segments using data collected about customers.

E-mail campaigns that use segmentation techniques allow high-performing companies to improve customer retention rates by 5 percent and opt-in rates by 18 percent, according to the study.

The study also found that although 96 percent of companies recognize the importance of personalization for their e-mail campaigns, they often lack the data to use for this purpose.

For example, only 16 percent of companies surveyed used customer profile, demographic, purchase history and other database information for personalization.