Study: Is Marketing Personalization Worth the Extra Effort?

1 MIN READ

Let’s be honest. Effective marketing takes work. There's a lot to consider, from crafting the perfect creative to selecting the right offer, refining your target list, and adding personalization. Is the extra time and attention worth the investment? To find the answer, let’s look at the results of a study from The Rochester Institute of Technology (RIT).

 

Does Personalization Impact Response Rate? 

Conducted by Dr. Frank Romano, professor emeritus of RIT, and one of his students, David Broudy, the study examines how various elements of marketing campaigns influence response rates. Key factors analyzed included name, geographic imagery, and marketing message. Although this research may be older, its depth and controlled research offer rare insights that every marketer should know.

Romano and Broudy conducted a controlled study of 36 mailings in nine categories. Four thousand pieces were sent in each mailing. The team used a mix of direct mail offers to both businesses and consumers. All mailings were professionally designed and produced.

The research was designed to test the effects of three variables: color versus black-and-white, the addition of simple name personalization, and the integration of more complex data, such as demographics and interests. Variables were measured both in isolation and in combination.

 

Results:

  • Control mailing: (black and white with no personalization)
  • Response rate: .46%
  • Second mailing: (simple name personalization)
  • Response rate: +44%
  • Third mailing: (full color, no personalization)
  • Response rate: +45%
  • Fourth mailing: (full color, name personalization)
  • Response rate +135%
  • Fifth mailing: (full-color, name personalization + more complex data personalization)
  • Response rate: +500%

 

Elements In Your Marketing Matter

The first takeaway in this study is that incorporating color and name personalization has a similar impact on response, an increase of 44%. While there is plenty of color in print marketing, this result suggests that not just using color but maximizing its use, such as using it to enhance psychographic or demographic personalization, can increase response rates.

The second takeaway emphasizes that color should not be the sole focus. To maximize its impact, color should be combined with other marketing elements. It is best used with other elements, including personalization, to create a more compelling message.

 

The Takeaway

If you’re considering foregoing some of the “extras” in your next mailing campaign, such as the strategic selection and use of color and personalization—don’t! These elements are more than just pretty. They are powerful response-boosting tools.

We’re here to help you navigate the personalization journey – to learn more about how personalization can impact your next marketing campaign, click here, and to learn more about the impact of personalization on ROI, read our latest blog here.