© 2004 Gartner, Inc.

One-to-One Communication:Promise vs. Perception

Denise GarciaPrincipal Analyst, Media & Advertising

© 2004 Gartner, Inc.

Objectives

• Determine future trends regarding mass, targeted and personalized marketing

— Competitive advantage or shallow threat?

• Phone survey of 212 marketing professionals

— iMedia, Wharton, Gartner

— Representative U.S. sample: co. size, # of employees, B2B/B2C, marketing budget from <$1 Million to $50 Million +, split between brand or sales focused strategy

© 2004 Gartner, Inc.

Personalized Marketing Increasing Importance

“Personalized marketing initiatives will be important to our organization in the future.”

© 2004 Gartner, Inc.

Advertising/Marketing Critical to Revenue/Sales Growth“Advertising and marketing are critical to meeting our organizations sales and revenue

goals.”

© 2004 Gartner, Inc.

Complaints Aren't Limiting Customization

“Concerns about customer/prospect complaints have slowed our use of personalized marketing.”

© 2004 Gartner, Inc.

BenefitsHIGH POTENTIAL

More efficient use of customer/prospect time44%

Increased customer retention 43%

Overall increases in revenue 43%

Increase average time spent at site by prospects/clients42%

More efficient use of employee time 38%

Increased number of web site visitors 37%

Shortened sales cycle35%

Improved web site registration rate 34%

More efficient use of partner time33%

Reduced costs 26%

Increased margin of average sale25%

© 2004 Gartner, Inc.

2004 PLANS23%

25%

25%

35%

31%

29%

37%

34%

35%

49%

44%

Techniques in UseNOT IN USE

Clickstream data to dynamically change web site content 73%

Collaborative filtering to classify visitors and serve content 72%

Keyword query to change content 67%

Give web site visitors control over content from set preferences 62%

Demographic personalization to tailor online messages 62%

Geographic personalization to tailor online messages 60%

Registration data to change web site content 59%

Geographic personalization to tailor messages in traditional media 54%

Demographic personalization to tailor messages in traditional media 51%

Address customers/prospects by name in electronic communication 38%

Address customers/prospects by name in print communication 32%

© 2004 Gartner, Inc.

Conclusions

• Most organizations realize the value of personalized and targeted marketing going forward

• Most companies have yet to utilize true targeted and or personalized marketing

• Privacy concerns are not a real issue for companies that value personalized marketing

• The majority of organizations understand the strong linkage between marketing and revenues

Denise:

Back and forth

Denise:

Back and forth

© 2004 Gartner, Inc.

Recommendations

Advertisers

• In the short to medium term focus on targeted marketing rather than personalized marketing

• Initiate ROI measures to evaluate various marketing strategies

• Use personalization and customization techniques to:

— gain competitive edge

— differentiate your brand

— strengthen customer relationships

© 2004 Gartner, Inc.

Recommendations

CRM and Personalized Marketing Vendors

• Realize the minimal understanding in business about personalized and targeted marketing strategies

• Be prepared to educate potential customers prior to evaluating sales potential of prospects

• Assume that early targeted and personalized marketing efforts will target existing customers

© 2004 Gartner, Inc.

Questions

?