While 94% of retail marketers believe that their company truly embodies customer obsession, only 18% are seeing the revenue growth they expected from those efforts, according to a survey from Listrak and Forrester Consulting. Retailers are leveraging new features and functionalities to achieve greater efficiency (63%), better innovation (58%) and improved customer satisfaction scores (49%), but many are not seeing tangible bottom-line benefits from these investments.
When it comes to investing in marketing technology (martech), only 22% of retailers prioritize whether it can improve business outcomes, such as higher customer lifetime value (CLV), revenue growth, acquisition, engagement and conversion.
“Over and over again, we see retailers and brands that sell direct not treating their customers any differently than they would someone that’s never bought from them before,” said Ross Kramer, CEO of Listrak in an interview with Retail TouchPoints. “If you want to drive business outcomes, you have to understand your customer groups on an individual level. The technology is mature. It’s not like the features don’t exist, but we don’t see them implemented in a broad way.”
Instead, retailers more often classify the following criteria as very important to the success of their marketing investments:
- Scalability (43%);
- Training and support (35%); and
- Features/functionality (30%).
Forrester surveyed 200 North American e-Commerce and marketing decision makers from retail organizations, with revenues ranging from $100 million to $5 billion. The retailers in the study fell into three…