Kibo's latest findings reveal that retailers using personalization across the entire shopper experience—including abandoned cart emails, promotional materials, loyalty programs and more—see a higher return on investment than those who only focus on one area of personalization.

Personalization is helping retailers achieve a higher return on investment (ROI), according to a recent survey of 400 retailers by ecommerce platform provider Kibo.

Three primary personalization touchpoints are responsible for retailers’ higher ROI, Kibo’s findings reveal. These touchpoints include:

  • Advanced AI-driven personalization
  • A marketing-led centralized team strategy
  • Personalization across the entire customer shopping experience

Advanced personalization features have led to 70% of retailers having a return on investment of 200% or more, according to Kibo. These features refer to personalization across the customer experience or the use of artificial intelligence. Further, retailers that integrate personalization across the entire customer experience—including marketing, shopping and other digital channels—had a higher return on investments than those that only used personalization for the shopping experience itself. Kibo found that 51% of retailers that prioritized personalization across the board experienced an ROI of 300% or more, whereas only 26% of retailers that only personalize the shopping experience itself have the same ROI of 300% or more.

These insights are likely part of the reason 47% of retailers said that they would be making investments into personalization to help improve conversion in 2020, according to a Digital Commerce 360 survey of 105 retailers in February 2020.



“The brands that offer ‘personalized commerce’ not only see higher ROI, they are in the best position to quickly pivot their business to meet changing customer behaviors and deliver personalized messaging to accompany it,” Kibo wrote in its findings.

When retailers do have to choose which area of their marketing to personalize, however, Kibo found three types were most likely to drive a higher return on investment for those retailers surveyed. Just over half (56%) of retailers said that they receive the best ROI from personalized messaging—such as promotional materials, loyalty programs and abandoned cart messages. Personalized mobile app or website content and personalized product recommendations also delivered high ROI, at 47% and 45% of retailers indicating so, respectively.