In this article you will learn:
Personalization Alone Doesn’t Build Brand Loyalty
Personalization Tech Vendor Shut Down for False Claims on Business Impact for Its Customers
SAN FRANCISCO – September 9, 2021 – PersonaLies, a leading provider of personalization technology for B2C marketers, today announced it has been shut down by the Regulatory Board for Terrible Tech Lies, effective immediately. The company has been closed and put under review due to false claims it made about the platform’s ability to personalize offers and drive revenue.
Most personalization technology vendors only personalize small amounts of creative imagery and copy within an offer. Their tools do not have the ability to customize the types of actions or rewards that each customer is offered and do not increase customer retention or brand loyalty.
A new survey of 1,000+ consumers from Formation, the pioneer in machine learning-powered offer optimization, illustrates that basic personalization techniques, like different types of creative, are not increasing consumer spending or driving brand loyalty:
- 45% of consumers are deleting over half of the email offers they receive
- The top 3 reasons why consumers delete offers are:
- What’s offered isn't something they’re interested in purchasing (55%)
- Item being offered is not relevant to their life (56%)
- Offer value is too small (36%)
- Only 40% of consumers believe brands are using the personal information they’ve provided to create better offers or experiences for them
The data also showed that consumers are positively influenced by personalization when it goes beyond simple creative changes:
- 64% of consumers said they would complete a purchase from an offer if the discount or reward amount aligns to the amount they normally spend
- The top 3 things consumers want personalized in their offers are:
- Inclusion of a discount or reward amount that aligns to the amount they normally spend (64%)
- Brands or styles they regularly purchase (59%)
- Offerings aligned with their past shopping history (54%)
With the ability to deliver billions of unique offers to consumers through Dynamic Actions & Rewards, the Formation platform provides new value to the martech stack for consumer-facing brands. Formation’s patented approach leverages machine learning technology to personalize offers for each individual customer and to optimize subsequent offers. The result is dynamic offers that drive deep customer engagement and a comprehensive platform that manages the creation and fulfillment of offers to maximize the value of first-party data, while improving the spend efficiency of rewards and discounts.
Formation helps brands build deeper relationships with every customer, beyond the transaction. Our patented Dynamic Offer Optimization Platform leverages brands’ first-party data to automatically generate each customer’s offer with the best action and reward and then manages the deployment, measurement and fulfillment of each offer across the marketing stack. Brands see a 3X revenue lift, 2X more engagement and 10X faster time to market with their offers. Formation powers offer optimization for some of the world’s largest brands, such as Starbucks, United Airlines and Giant Eagle. For more information, visit formation.ai. Formation also supports a community of digital and marketing leaders called Loyalty Innovators. For more information, visit loyaltyinnovators.com.