Personalization Is Overrated: Won't Save Your Business
It's safe to say "personalization" is having a moment. With AI all this is on overdrive too. Startups based on the idea are exiting, and everyone seems to think it's necessary to survive.
It's not. Want to know a few great things in life that do not have personalized marketing and placement?
The Grand Canyon.
A Bergdorf Goodman Store Window in New York City During the Holidays.
The Original iPhone.
Shared experiences and offers create shared moments. Shared moments create word of mouth. And word of mouth drives business.
If all of your customers truly have these "unique experiences" we all seem so desperate to create now, then you can dilute your brand impact.
Essentials in Retail and eCommerce Beyond Personalization
In retail (and as a result, eCommerce), there are at least 4 things that are much more important than your personalization:
How much and what inventory you buy.
How compelling your actual offer is relative to replacements.
The gross and net margins you are working with.
The speed and reliability of your delivery.
Until you fix these, skip your personalization strategy.
The Truth About Personalization: It's Not a Cure-All
Sure you could personalize what inventory is shown, or what offer is shown. But if your product line is undifferentiated, and you need to discount to survive, then you are already dead.
If your products are not worth talking about, then it all won't matter. After all, does anyone remember Woot!? 1 product a day, and sold to Amazon for $110M. Keep in mind that the lack of personalization can drive deep inventory buys, which can in turn drive both virality and profitability simultaneously.
It's not the only way to do business, and a personalized and unique inventory model can work (as long as you aren't holding much inventory, like Shein) but just be sure that you are buying and presenting the right inventory in the first place.
Else, don't expect personalization to come to your rescue. Because, it won't.
Expert Consulting: How Will You Grow Your eCommerce Company?
When growth is elusive, I am an expert at asking incisive questions to surface the real issues and then present straightforward ideas that your team can actually implement.
Mistakes are expensive. They cost money, of course. What’s worse is the opportunity cost. I work with investors and management teams worldwide to help them get a handle on their digital business plans to execute a clear path forward.
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