What are our data sources?
We use the data sources on the side for ranking solutions and awarding badges in personalization engine category. Our data sources in personalization engine category include;
Personalization engines allow companies to personalize marketing, sales and other aspects of customer experience to optimize a company's relationship with each customer. If we take a website as an example, the layout, use of colors, messages on the page, promotions and products showcased on the page can be personalized to increase sales.
Since the 90s, it became clear that companies have the necessary capacity and technology to go beyond the traditional segmentation approaches that segmented customers into a few buckets. Today, companies universally aim to serve each customer with a customized approach designed to optimize the company's relationship with the customer.
Personalization pays off. For example, personalized recommendations account for 74% content watched on Netflix according to McKinsey&Company.
Personalization solutions typically leverage machine learning algorithms such as collaborative filtering which relies on the choices of similar individuals. Due to constraints of specific personalization applications such as scarcity of feedback, time sensitivity, managing a dynamic catalogue and a dynamic user base, companies test different approaches in this field including multi-armed bandits and other new approaches
To be effective, personalization solutions need to have access to data on the experiments performed and their results so they can improve based on the available data. To achieve this, personalization solutions integrate with analytics software as well as software that manages interaction with customers.
Personalization is also called individualization, one-to-one (1-1) marketing or segment of one. Personalization engines are also called personalization systems or personalization software
If you’d like to learn about the ecosystem consisting of Personalization Engine and others, feel free to check AIMultiple Marketing.
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We use the data sources on the side for ranking solutions and awarding badges in personalization engine category. Our data sources in personalization engine category include;
review websites
social media websites
search engine data for branded queries
According to the weighted combination of 7 data sources
Optimizely
BloomReach
Acquia Lift
Dynamic Yield
AB Tasty
Taking into account the latest metrics outlined below, these are the current personalization engine market leaders. Market leaders are not the overall leaders since market leadership doesn’t take into account growth rate.
Optimizely
BloomReach
Dynamic Yield
AB Tasty
Acquia Lift
These are the number of queries on search engines which include the brand name of the solution. Compared to other Marketing categories, Personalization Engine is more concentrated in terms of top 3 companies’ share of search queries. Top 3 companies receive 81%, 7% more than the average of search queries in this area.
67 employees work for a typical company in this solution category which is 46 more than the number of employees for a typical company in the average solution category.
In most cases, companies need at least 10 employees to serve other businesses with a proven tech product or service. 26 companies with >10 employees are offering personalization engine. Top 3 products are developed by companies with a total of 300k employees. The largest company building personalization engine is IBM with more than 300,000 employees.
Taking into account the latest metrics outlined below, these are the fastest growing solutions:
Optimizely
BloomReach
Acquia Lift
AB Tasty
Dynamic Yield
We have analyzed reviews published in the last months. These were published in 4 review platforms as well as vendor websites where the vendor had provided a testimonial from a client whom we could connect to a real person.
These solutions have the best combination of high ratings from reviews and number of reviews when we take into account all their recent reviews.
This data is collected from customer reviews for all Personalization Engine companies. The most positive word describing Personalization Engine is “Easy to use” that is used in 5% of the reviews. The most negative one is “Difficult” with which is used in 1.00% of all the Personalization Engine reviews.
According to customer reviews, most common company size for personalization engine customers is 51-1,000 employees. Customers with 51-1,000 employees make up 45% of personalization engine customers. For an average Marketing solution, customers with 51-1,000 employees make up 43% of total customers.
These scores are the average scores collected from customer reviews for all Personalization Engines. Personalization Engines is most positively evaluated in terms of "Customer Service" but falls behind in "Likelihood to Recommend".
This category was searched on average for 460 times per month on search engines in 2022. This number has decreased to 320 in 2023. If we compare with other marketing solutions, a typical solution was searched 2.3k times in 2022 and this decreased to 590 in 2023.
Personalization engine is a marketing tool that leverages data to enhance the customer journey. These engines deliver personalized content to customers on the company’s digital channels. They are most commonly used in e-commerce.
Customers expect a personalized experience thanks to their routine interactions with highly personalized digital solutions like Netflix and Amazon with their accurate content and product recommendations. According to studies they are willing to pay more for a personalized experience in many cases.
This trend creates a demand for personalization engines. According to another study, 91% of shoppers are more likely to convert with brands who understand their customers to provide content relevant to consumers daily routines. This shows how important personalization is, especially when you know almost 84% of an e-commerce website visitors are one-time shoppers that do not return.
Features include
Companies can take an iterative approach in their personalization investments starting from low cost/high impact initiatives. A company could follow these steps to advance its personalization efforts over time:
We benefited from this description of levels of personalization in this answer.
Personalization engines have different capabilities and can be sold as a point solution. Capabilities can be categorized as:
Data and Analytics: Personalization starts with collecting data and performing analysis to gain insights that let you know consumers.
Testing: Your solution should be able to perform testing algorithms such as A/B and multivariate testing so that you can design your channel in an optimal way that attracts and nurtures visitors.
Behavioral predictions: Personalization engines can identify patterns of customer behavior and predict customer behavior (e.g. predict products that the customer is likely to buy).
Marketing Channel Support: Personalization engines can create and launch personalized campaigns through channels such as web, email marketing, mobile app engagement, mobile messaging, digital advertising, retargeting and paid search. This is especially relevant for e-commerce companies as they personalize their marketing outreach and their digital properties
Customer Experience Support: Personalization engines can support your omnichannel strategy by enhancing customer experience across touchpoints such as chatbots, voice assistants, interactive voice response (IVR) and call center conversations. They can also improve real-life experiences in digital kiosks or they can provide intelligence to retail sales reps via their devices (also called clienteling applications).
Measurement and Reporting: At the end of the campaign, your solution should help you track KPIs such as engagement and conversion rate to evaluate strategy via dashboards, and data visualization.
Our sources include Gartner 2019 Magic Quadrant report.