Summarize this articleHere’s what you need to know:
- AI has raised the bar for e-commerce interactions. To meet new expectations, brands continue to prioritize personalization, with 67% planning to invest more in the practice.
- While teams have doubled down on processes this year, resource and staffing constraints remain major bottlenecks — only half of the surveyed brands have dedicated personalization teams. Without more dedicated support, even strong processes risk falling short of their full impact.
- Efforts are also often siloed, with many brands lacking a unified audience strategy, limiting the effectiveness of personalization across channels and teams.
- Finally, many fail to measure success through proper establishment of key performance indicators (KPIs), hindering greater commitment for scale.
The stakes for getting personalization right are at an all-time high for e-commerce brands. BCG research predicts that $2 trillion will shift to companies that know how to deliver personalized experiences over the next five years. So how can brands invest in the right areas, prove the value of personalization and foster the executive buy-in needed to seize a piece of the pie?
That’s where our sixth annual State of Personalization Maturity report comes in.
To better understand the current challenges and opportunities of personalization, Dynamic Yield by Mastercard surveyed e-commerce business leaders in the Americas (AMER), Asia-Pacific (APAC) and Europe and Middle East (EMEA) regions.
You can read the complete report by clicking on the photo below:
Our take on the findings
AI-driven experiences are becoming ubiquitous. Online shoppers are using AI to help them find what they want swiftly, seamlessly and effortlessly. To meet rising expectations for fluid, intelligent interactions, e-commerce brands will look to personalization to help them adapt to customer needs in exciting, new ways.
Most have taken the first critical steps to meet customers where they’re at. 67% of global e-commerce brands, for instance, consider personalization a top priority and plan to invest more in it. Overall, the market came back advanced in its level of maturity when scored across culture, resources, processes and effectiveness, consistent with previous years.
But is it enough to keep up?
Zooming in, brands have significantly bolstered their processes to efficiently bring contextually relevant digital interactions to life. But the right processes are not enough to scale personalization execution and impact across an organization. One key signal is still holding them back: Resources (such as dedicated staffing and teams).
Here’s more on the key areas of opportunity we believe will help make a better case for continued personalization investment this year:
Culture: Tying metrics back to personalization value remains elusive for some
To unlock scale, teams must be able to measure and communicate the value of personalization — yet four in 10 brands lack clear key performance indicators (KPIs) to assess their efforts. It’s important to link campaign metrics to larger business goals, which they can do through smaller scale tests that prove impact and open doors to greater investment.
Resources: Momentum and scale inhibited by lack of dedicated personalization staffing
Only 50% of brands have established dedicated personalization support, with others relying on ad-hoc resources or going without it completely. These constraints make it difficult to drive personalization efforts across teams and functions required to deliver personalization. Without the proper operational foundations, progress will stall, which can lead to a cycle of disinvestment.
Processes: Organizations are heavily investing in personalization processes to unlock efficiency gains
Companies have doubled down on processes this year, with 65% reporting they derive insights and learnings from test data. Brands are likely motivated by the decrease in overhead that comes with integrating personalization into their marketing and conversion rate optimization (CRO) strategies. But without adequate resourcing to reinforce these strong processes, brands risk missing out on the impact of a fully cohesive program.
Effectiveness: Siloed efforts are reducing the impact of personalization
67% of brands report they lack a singular audience strategy for approaching ideation, execution and analysis. Those brands may optimize processes only within one function or team (email marketing, for example). This leads to siloed, channel-specific efforts that have limited effectiveness when compared to cross-functional, multi-channel personalization based on an aligned, fixed audience strategy.
Each region by the numbers
While these insights extend across geographies, we took a deeper look at regional e-commerce markets to understand how personalization is prioritized across each signal. We discovered some key points of difference, from team structure and processes to cross-functional collaboration and strategic alignment. Using these benchmarks, companies can compare themselves against others in their region.
Personalization maturity varies by region: APAC prioritizes resources, AMER emphasizes cross-team collaboration, and EEMEA focuses on clear KPIs
EMEA
- Despite having more established campaign-specific KPIs than other regions, 44% of EMEA companies make in-the-moment decisions around winning variations — 14% higher than the global average.
- EMEA companies are twice as likely to lack champions of personalization at their organization and rely on ad-hoc support for spur-of-the-moment needs than other regions compared to the global average.
AMER
- Almost half of AMER companies state they can use insights and learnings to run tests, learn more about audiences and inform their strategy — a figure higher than the global average.
- AMER companies have fewer resources to draw from and lack the autonomy of a centralized personalization team. They may be able to accomplish personalization-related tasks — even garnering greater nuance and insight as a result — but their level of skill in the discipline is not as refined as it could be.
APAC
- APAC has led the pack as far as using a data-driven approach for personalization test ideation and advocating for existing quarterly plans based on those to take precedence over executive mandates.
- The majority of APAC respondents report there being little to no organizational alignment around an audience strategy, or that it varies in application from team to team.
Process jumpstarts momentum — but to get a leg up, brands must scale with people
Overall, e-commerce brands have made significant headway toward delivering pioneer-level personalization. For the second year in a row, we saw the most significant developments for the processes signal — a critical linchpin for brands looking to launch more effective campaigns.
But as AI-driven experiences fuel mounting customer expectations, brands can’t afford to rest on their laurels. To get a leg up with personalization, they should first establish clear, quantitative business goals that tie back to generated value. From there, they can better measure and communicate its value to the C-suite, secure greater buy-in and get the investment needed to build out more dedicated resources for scale. And remember, while AI can enhance decisioning and ensure highly tailored content delivery, it still requires proper know-how, strategy, process, and measurement to reap its benefit.
Be sure to check out the full report for more insights into the state of personalization maturity in e-commerce. And don’t forget to discover where your own company stands by answering these 16 questions.
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menu-item-type-custom menu-item-object-custom menu-item-has-children" data-content="company" title=""> <a href="">Company</a></li><li class="has-dropdown learning_center menu-has-cta top-link-use-cases menu-item menu-item-type-custom menu-item-object-custom menu-item-has-children" data-content="learning-center" title=""> <a href="">Learning Center</a></li><li class="contact top-link walker-last mobile-only menu-item menu-item-type-post_type menu-item-object-page" data-content="connect-with-us" title=""> <a href="https://www.dynamicyield.com/contact/"><span class="button-arrow">Connect with us</span></a></li></ul></nav><div class="morph-dropdown-wrapper"><div class="dropdown-list"><div class="dropdown-tooltip"></div><ul><li id="product" class="dropdown links"><a href="" class="label">Product</a><div class="content"><ul><li class="intro"><div class="exp_os-wrapper"><h2>Experience OS</h2><ul class="links-list"><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://www.dynamicyield.com/experience-os/"><span class="menu-banner-img-wrap"><img class="menu-banner-img-desktop" src="/wp-content/uploads/2024/10/expos-nav-updated.png" width="218" height="131" /><img class="menu-banner-img-mobile" src="/wp-content/uploads/2024/10/expos-nav-updated-mobile.png" width="114" height="98" /></span><span class="menu-cta-text-wrap"><span class="menu-cta-subtitle">Get an overview of Dynamic Yield’s product and see why we’re known as the Experience OS.</span> <span class="menu-cta-button">Learn more →</span></span></a></li></ul></div></li><li class="left"><div class="key_caps-wrapper"><h2>Core Capabilities</h2><ul class="links-list"><li class="key-caps-segment menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/segmentation/"><svg version="1.1" id="audience" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 30 30" style="enable-background:new 0 0 30 30;" xml:space="preserve"><path id="audience-green" fill="#4FB294" d="M9.291,30H30V9.291C18.562737,9.291,9.291,18.562737,9.291,30z"/><path id="audience-black" d="M12.527,15.947C9.240353,12.385597,4.806085,10.093244,0,9.471V30h7.639 C7.632218,24.897682,9.35532,19.943764,12.527,15.947z"/><circle id="audience-circle" fill="#4FB294" cx="15" cy="4.967" r="4.967"/></svg>Segmentation<span>Identify, build, and analyze audiences</span></a></li><li class="key-caps-omnichannel menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/targeting/"><svg version="1.1" id="personalization" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 20.987 30" style="enable-background:new 0 0 20.987 30;" xml:space="preserve"><path id="personalization-black-2" d="M20.987,19.507c0,5.795401-4.698099,10.4935-10.4935,10.4935S0,25.302401,0,19.507H20.987z"/><path id="personalization-pink" fill="#EE3968" d="M18.143,10.245c0,4.224978-3.425022,7.649999-7.65,7.649999S2.842999,14.469978,2.842999,10.245 H18.143z"/><circle id="personalization-black-1" cx="10.494" cy="4.307" r="4.307"/></svg>Targeting<span>Serve each customer with unique offers</span></a></li><li class="key-caps-recs menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/recommendations/"><svg version="1.1" id="recs" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 30 30" style="enable-background:new 0 0 30 30;" xml:space="preserve"><path id="recs_4" d="M15.953,30H30V15.953H15.953V30z"/> <path id="recs_3" d="M0,15.953V30h14.047V15.953H0z"/><path id="recs_2" fill="#FFA354" d="M30,14.047V0H15.953v14.047H30z"/><path id="recs_1" d="M14.047,0H0v14.047h14.047V0z"/></svg>Recommendations<span>Algorithmically predict customers’ interests</span></a></li><li class="key-caps-email menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/journey-orchestration/"><svg version="1.1" id="trigger" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 26.017 30" style="enable-background:new 0 0 26.017 30;" xml:space="preserve"><path id="trigger-black" d="M14.017,12h12l-12,18V12z"/><path id="trigger-purple" fill="#5D39B9" d="M12,18H0L12,0V18z"/></svg>Journey Orchestration<span>Reach customers at critical moments</span></a></li><li class="key-caps-abtesting menu-item menu-item-type-custom menu-item-object-custom"><a href="/optimization/"><svg version="1.1" id="testing" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 28.713001 30" style="enable-background:new 0 0 28.713001 30;" xml:space="preserve"><path id="testing-blue" fill="#6BDADA" d="M15.831,0c7.114532,0,12.882001,5.767468,12.882001,12.882S22.945532,25.764,15.831,25.764l0,0V0z"/><path id="testing-black" d="M12.882,30C5.767468,30,0,24.232533,0,17.118S5.767468,4.236,12.882,4.236V30z"/></svg>Optimization<span>Experiment on any digital property</span></a></li><li class="key-caps-search menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/search/"><svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg"> <g clip-path="url(#clip0_4082_5186)" id="cap-search-svg-bg"> <path d="M11.6757 9.81054C8.73958 9.81054 6.35089 7.42177 6.35089 4.48562C6.35089 2.62899 7.30664 0.992133 8.75134 0.0388074C8.50309 0.0155936 8.25193 0.00238037 7.99762 0.00238037C3.58066 0.00238037 0 3.58304 0 8C0 12.417 3.58066 15.9976 7.99762 15.9976C12.4146 15.9976 15.9952 12.417 15.9952 8C15.9952 7.86848 15.9916 7.73782 15.9853 7.60785C15.0166 8.94122 13.4462 9.81054 11.6757 9.81054Z" fill="black"/> <path id="cap-search-svg-circle" d="M11.6757 0.161346C11.2226 0.161346 10.7857 0.231773 10.3749 0.361649C8.62429 0.915114 7.35156 2.55436 7.35156 4.48561C7.35156 6.87003 9.29141 8.80988 11.6757 8.80988C13.5373 8.80988 15.1277 7.62753 15.7358 5.97437C15.9066 5.51 16 5.00851 16 4.48561C16 2.10119 14.0602 0.161346 11.6757 0.161346Z" fill="#FFC61E"/> </g> <defs> <clipPath id="clip0_4082_5186"> <rect width="16" height="16" fill="white"/> </clipPath> </defs> </svg>Search<span>Help customers find what they want</span></a></li></ul></div></li><li class="right"><div class="scale-wrapper"><h2>Made for Scale</h2><ul class="links-list"><li class="key_caps-element menu-item menu-item-type-custom menu-item-object-custom"><a href="/element/">Element<span>A groundbreaking new dimension of hyper-personalization</span></a></li><li class="key_caps-adaptml menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/ai/">AI & Automation<span>Increase automation, lower operational costs, and drive more revenue with a holistic AI personalization system</span></a></li><li class="key_caps-apis menu-item menu-item-type-custom menu-item-object-custom"><a href="https://www.dynamicyield.com/experience-apis/">Experience APIs<span>Give developers the tools they need to build the best customer experiences</span></a></li><li class="key_caps-enterprise menu-item menu-item-type-custom menu-item-object-custom"><a href="https://www.dynamicyield.com/enterprise-grade-personalization/">Enterprise solutions<span>Scale with security, privacy, and compliance, made for the enterprise</span></a></li></ul></div></li></ul><a href="/shopping-muse/" target="" class="banner"><div class="menu-banner"><span class="menu-cta-text"><strong>Meet Shopping Muse: </strong> Conversational commerce meets cutting-edge personalization.</span> <span class="menu-cta-button">Learn more →</span></div></a></div></li><li id="solutions" class="dropdown links"><a href="" class="label">Solutions</a><div class="content"><ul><li class="left"><div class="industries-wrapper"><h2>Industries</h2><ul class="links-list"><li class="industry-ecomm menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/ecommerce/">eCommerce</a></li><li class="industry-finserv menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/financial-services/">Financial Services</a></li><li class="industry-qsr menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/restaurants/">Restaurants</a></li><li class="industry-grocery menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/grocery/">Grocery</a></li><li class="industry-b2b menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/b2b-ecommerce/">B2B eCommerce</a></li><li class="industry-travel menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/travel/">Travel</a></li><li class="industry-gaming menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/gaming/">iGaming</a></li><li class="industry-media menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/media/">Media</a></li></ul></div></li><li class="right"><div class="channels-wrapper"><h2>Channels</h2><ul class="links-list"><li class="channels-web menu-item menu-item-type-custom menu-item-object-custom"><a href="/web/">Web<span>Create customer-centric web experiences</span></a></li><li class="channels-email menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/channels/email/">Email<span>Personalize emails with a no-code builder</span></a></li><li class="channels-mobile-apps menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/mobile/">Apps<span>Optimize mobile app experiences</span></a></li><li class="channels-ads menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/advertising/">Ads<span>Improve customer acquisition results</span></a></li></ul></div></li></ul></div></li><li id="why-dynamic-yield" class="dropdown links"><a href="" class="label">Why Dynamic Yield</a><div class="content"><ul><li class="impact-wrapper"><h2>Proven impact and success services</h2><ul class="links-list"><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/clients/">Select customers</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/case-studies/">Case studies</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/customer-success/">Customer success services</a></li></ul></li><li class="scale-wrapper"><h2>Built for scale</h2><ul class="links-list"><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/enterprise-grade-personalization/">Enterprise-grade solutions</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/adaptml/">AI Technology</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/gdpr-and-privacy/">GDPR and data privacy</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/security/">Security</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/compliance/">Compliance</a></li></ul></li><li class="network-wrapper"><h2>Robust partner network</h2><ul class="links-list"><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/partners/">Partner library</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/partner-program/">Partnership program</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/partners/#technology-partners">Tech Partners and Integrations</a></li></ul></li><li class="resources-wrapper"><h2>Extensive product resources</h2><ul class="links-list"><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://support.dynamicyield.com/hc/en-us">Knowledge Base</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="http://academy.dynamicyield.com/">Academy & Certification</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://support.dynamicyield.com/hc/en-us/community/topics">Community</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://dy.dev/">API documentation</a></li></ul></li></ul><a href="https://www.dynamicyield.com/personalization-awards/" target="_self" class="banner"><div class="menu-banner"><div class="menu-cta--left"> <img src="/wp-content/uploads/2023/11/2023-award-badge.svg" width="60" height="60" /></div><div class="menu-cta--right"> <strong class="menu-cta-title">The Personalization Awards</strong> <span class="menu-cta-subtitle">Celebrating customers and partners setting the gold-standard for personalization</span> <span class="menu-cta-button">Learn more →</span></div></div></a></div></li><li id="company" class="dropdown button"><a href="" class="label">Company</a><div class="content"><ul class="links-list"><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://www.mastercard.com/us/en/for-the-world/about-us.html">About us</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/blog/">Blog</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/labs/">DY Labs</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/careers/">Careers</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://events.dynamicyield.com/">Events</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://www.mastercard.com/us/en/news-and-trends/stories.html">Press</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/awards-and-recognitions/">Awards</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/contact/">Contact us</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/request-demo/">Request a demo</a></li></ul></div></li><li id="learning-center" class="dropdown links"><a href="" class="label">Learning Center</a><div class="content"><ul><li class="top"><ul class="links-list"><li class="resources-xp hidden-mobile menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/learn/">Take your knowledge to exponential levels</a></li><li class="hidden-desktop menu-item menu-item-type-custom menu-item-object-custom"><a href="/learn/">XP<sup>2</sup> Hub<span>Take your knowledge to exponential levels</span></a></li><li class="resources-paths menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/learning-paths/">Learning Paths<span>Curated courses on key skill areas</span></a></li><li class="resources-webinars menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/talks/">Talks<span>Engaging discussions taking place in CX</span></a></li><li class="resources-articles menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/articles/">Articles<span>An expansive collection of in-depth playbooks</span></a></li><li class="resources-glossary menu-item menu-item-type-custom menu-item-object-custom"><a href="/glossary-terms/">Encyclopedia<span>A glossary of experience optimization 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target="_self"><div class="menu-banner"><div class="menu-cta--left"> <img src="/wp-content/uploads/2023/03/rooted-icon.svg" width="60" height="60" /></div><div class="menu-cta--right"> <strong class="menu-cta-title">Rooted Personalization<span>new</span></strong> <span class="menu-cta-subtitle">Learn a scalable methodology for building an audience-based personalization program.</span> <span class="menu-cta-button">Find out more →</span></div></div></a></li></ul></div></li><li class="contact top-link walker-last mobile-only menu-item menu-item-type-post_type menu-item-object-page" data-content="connect-with-us" title=""> <a href="https://www.dynamicyield.com/contact/"><span class="button-arrow">Connect with us</span></a></li></ul><div class="bg-layer" aria-hidden="true"></div></div></div></li></ul></nav></div><div class="topnav-buttons"><div class="language-switcher header-language-switcher"><ul><li>en<ul><li><a class="active" 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Enough?</div><div class="lc-header-right lc-flex"><ul class="lc-header-social lc-flex"><li class="et-social-icon"> <a href="#" title="Share on Facebook" class="icon" onclick="window.open('https://www.facebook.com/sharer/sharer.php?u=' + encodeURIComponent(document.URL) + '&t=' + encodeURIComponent(document.URL)); return false;"> <svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 460.1990662 458.5138245"><path 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class="button-inner"> XP² Newsletter </span> </a></div></div></div><div class="lc-progress-wrap"><div class="lc-scroll-progress"></div></div></header><article id="post-240504" class="et_pb_post post-240504 post type-post status-publish format-standard has-post-thumbnail hentry category-company tag-personalization-maturity"><div class="article-content"><div class="article-breadcrumbs"> <a href="https://www.dynamicyield.com/blog/" title="Blog">Blog</a><ul class="post-categories"><li><a href="https://www.dynamicyield.com/blog/category/company/" rel="category tag">Company</a></li></ul></div><h1 class="article-title">AI Fuels New Demands for Personalization — Is E-Commerce Maturing Fast Enough?</h1><h2 class="article-excerpt">Our latest research finds e-commerce brands have made personalization a top priority amid rising customer expectations fueled by artificial intelligence (AI). But as they invest in processes to unlock efficiency gains, a lack of dedicated staffing could stall their momentum.</h2><div class="article-authors lc-flex"><div class="article-author-box lc-col lc-flex"><div class="article-author-image lc-col"><div class="entry_author_image"><img src="https://www.dynamicyield.com/wp-content/authors/jr.moore-156.jpeg" alt="JR Moore" width="76" height="76" /></div></div><div class="article-author-title lc-col"><div class="article-author-name"> <a href="https://www.dynamicyield.com/blog/author/jr-moore/" title="Posts by JR Moore" rel="author">JR Moore</a></div><div class="article-author-title-text"> Content Writer</div></div></div></div><div class="entry-content article-entry-content"><div id="WYNTK-Sec" class="what-you-need-to-know-sec"><p><img decoding="async" style="width: 20px; margin-right: 5px; vertical-align: -2px;" src="/wp-content/uploads/2020/09/star-icon.svg" /><strong class="first">Summarize this article</strong><strong class="hidden">Here’s what you need to know:</strong></p><ul style="margin-left: 4px; font-size: 16px;"><li style="margin: 10px 0;">AI has raised the bar for e-commerce interactions. To meet new expectations, brands continue to prioritize personalization, with 67% planning to invest more in the practice.</li><li style="margin: 10px 0;">While teams have doubled down on processes this year, resource and staffing constraints remain major bottlenecks — only half of the surveyed brands have dedicated personalization teams. Without more dedicated support, even strong processes risk falling short of their full impact.</li><li style="margin: 10px 0;">Efforts are also often siloed, with many brands lacking a unified audience strategy, limiting the effectiveness of personalization across channels and teams.</li><li style="margin: 10px 0;">Finally, many fail to measure success through proper establishment of key performance indicators (KPIs), hindering greater commitment for scale.</li></ul></div><p>The stakes for getting personalization right are at an all-time high for e-commerce brands. BCG research predicts that <a href="https://www.bcg.com/press/15october2024-capturing-the-2-trillion-personalization-opportunity-with-ai" target="_blank" rel="noopener">$2 trillion will shift</a> to companies that know how to deliver personalized experiences over the next five years. So how can brands invest in the right areas, prove the value of personalization and foster the executive buy-in needed to seize a piece of the pie?</p><p>That’s where our sixth annual State of Personalization Maturity report comes in.</p><p>To better understand the current challenges and opportunities of personalization, Dynamic Yield by Mastercard surveyed e-commerce business leaders in the Americas (AMER), Asia-Pacific (APAC) and Europe and Middle East (EMEA) regions.</p><p>You can read the complete report by clicking on the photo below:</p><p><a href="https://www.dynamicyield.com/personalization-maturity/" target="_blank" rel="noopener"><img decoding="async" src="https://www.dynamicyield.com/wp-content/uploads/2025/04/personalization_XP2_inline_01-scaled.jpg" /></a></p><h2>Our take on the findings</h2><p>AI-driven experiences are becoming ubiquitous. Online shoppers are using AI to help them find what they want swiftly, seamlessly and effortlessly. To meet rising expectations for fluid, intelligent interactions, e-commerce brands will look to personalization to help them adapt to customer needs in exciting, new ways.</p><p>Most have taken the first critical steps to meet customers where they’re at. 67% of global e-commerce brands, for instance, consider personalization a top priority and plan to invest more in it. Overall, the market came back advanced in its level of maturity when scored across culture, resources, processes and effectiveness, consistent with previous years.</p><p>But is it enough to keep up?</p><p>Zooming in, brands have significantly bolstered their processes to efficiently bring contextually relevant digital interactions to life. But the right processes are not enough to scale personalization execution and impact across an organization. One key signal is still holding them back: Resources (such as dedicated staffing and teams).</p><p>Here’s more on the key areas of opportunity we believe will help make a better case for continued personalization investment this year:</p><p><strong>Culture: </strong><strong>Tying metrics back to personalization value remains elusive for some</strong></p><p>To unlock scale, teams must be able to measure and communicate the value of personalization — yet four in 10 brands lack clear key performance indicators (KPIs) to assess their efforts. It’s important to link campaign metrics to larger business goals, which they can do through smaller scale tests that prove impact and open doors to greater investment.</p><p><strong>Resources: </strong><strong>Momentum and scale inhibited by lack of dedicated personalization staffing</strong></p><p>Only 50% of brands have established dedicated personalization support, with others relying on ad-hoc resources or going without it completely. These constraints make it difficult to drive personalization efforts across teams and functions required to deliver personalization. Without the proper operational foundations, progress will stall, which can lead to a cycle of disinvestment.</p><p><strong>Processes: </strong><strong>Organizations are heavily investing in personalization processes to unlock efficiency gains</strong></p><p>Companies have doubled down on processes this year, with 65% reporting they derive insights and learnings from test data. Brands are likely motivated by the decrease in overhead that comes with integrating personalization into their marketing and conversion rate optimization (CRO) strategies. But without adequate resourcing to reinforce these strong processes, brands risk missing out on the impact of a fully cohesive program.</p><p><strong>Effectiveness: </strong><strong>Siloed efforts are reducing the impact of personalization</strong></p><p>67% of brands report they lack a singular audience strategy for approaching ideation, execution and analysis. Those brands may optimize processes only within one function or team (email marketing, for example). This leads to siloed, channel-specific efforts that have limited effectiveness when compared to cross-functional, multi-channel personalization based on an aligned, fixed audience strategy.</p><h2>Each region by the numbers</h2><p>While these insights extend across geographies, we took a deeper look at regional e-commerce markets to understand how personalization is prioritized across each signal. We discovered some key points of difference, from team structure and processes to cross-functional collaboration and strategic alignment. Using these benchmarks, companies can compare themselves against others in their region.</p><p><img decoding="async" src="https://www.dynamicyield.com/wp-content/uploads/2025/04/personalization_XP2_inline_02-scaled.jpg" /></p><div style="font-size: 12px; margin-top: 0px; line-height: 1.3em; margin-bottom: 0px; max-width: 1330px; text-align: center;"><em>Personalization maturity varies by region: APAC prioritizes resources, AMER emphasizes cross-team collaboration, and EEMEA focuses on clear KPIs</em></div><p><strong>EMEA</strong></p><ul><li>Despite having more established campaign-specific KPIs than other regions, 44% of EMEA companies make in-the-moment decisions around winning variations — 14% higher than the global average.</li></ul><ul><li>EMEA companies are twice as likely to lack champions of personalization at their organization and rely on ad-hoc support for spur-of-the-moment needs than other regions compared to the global average.</li></ul><p><strong>AMER</strong></p><ul><li>Almost half of AMER companies state they can use insights and learnings to run tests, learn more about audiences and inform their strategy — a figure higher than the global average.</li></ul><ul><li>AMER companies have fewer resources to draw from and lack the autonomy of a centralized personalization team. They may be able to accomplish personalization-related tasks — even garnering greater nuance and insight as a result — but their level of skill in the discipline is not as refined as it could be.</li></ul><p><strong>APAC</strong></p><ul><li>APAC has led the pack as far as using a data-driven approach for personalization test ideation and advocating for existing quarterly plans based on those to take precedence over executive mandates.</li></ul><ul><li>The majority of APAC respondents report there being little to no organizational alignment around an audience strategy, or that it varies in application from team to team.</li></ul><h2>Process jumpstarts momentum — but to get a leg up, brands must scale with people</h2><p>Overall, e-commerce brands have made significant headway toward delivering pioneer-level personalization. For the second year in a row, we saw the most significant developments for the processes signal — a critical linchpin for brands looking to launch more effective campaigns.</p><p>But as AI-driven experiences fuel mounting customer expectations, brands can’t afford to rest on their laurels. To get a leg up with personalization, they should first establish clear, quantitative business goals that tie back to generated value. From there, they can better measure and communicate its value to the C-suite, secure greater buy-in and get the investment needed to build out more dedicated resources for scale. And remember, while AI can enhance decisioning and ensure highly tailored content delivery, it still requires proper know-how, strategy, process, and measurement to reap its benefit.</p><p>Be sure to check out <a href="https://www.dynamicyield.com/personalization-maturity/" target="_blank" rel="noopener">the full report</a> for more insights into the state of personalization maturity in e-commerce. And don’t forget to discover where your own company stands by answering <a href="https://www.dynamicyield.com/personalization-maturity-survey/" target="_blank" rel="noopener">these 16 questions</a>.</p></div></article><div style="clear: both;"></div></div></div><div class="article-content"><div class="article-separator"><svg width="54" height="26" viewBox="0 0 54 26" fill="none" xmlns="http://www.w3.org/2000/svg"> <path d="M53.0088 25.6367C52.7884 21.9564 51.8025 18.3625 50.1141 15.0849C48.4256 11.8073 46.0718 8.9181 43.2031 6.60203L43.2031 25.6367L53.0088 25.6367Z" fill="black"/> <path d="M14.4395 3.59038C10.3237 5.69174 6.82743 8.83082 4.29638 12.6973C1.76533 16.5638 0.28711 21.0239 0.0078125 25.6367L14.4395 25.6367L14.4395 3.59038Z" fill="black"/> <path d="M17.6563 2.20809L17.6562 25.6367L39.9829 25.6367L39.9829 4.36701C39.9829 4.36701 30.7303 -2.31342 17.6563 2.20809Z" fill="black"/> </svg></div><div class="article-tags-block"> <strong>Categories:</strong><ul class="post-categories"><li><a href="https://www.dynamicyield.com/blog/category/company/" rel="category tag">Company</a></li></ul></div><div class="article-tags-block"><strong>Tags:</strong><a href="https://www.dynamicyield.com/blog/tag/personalization-maturity/" rel="tag">Personalization Maturity</a></div></div></div><section class="lc-subscription-section"><div class="lc-subscription-form-block lc-subscription-inner"><h4 class="lc-subscription-title">Sign up for the XP² newsletter</h4><div class="lc-subscription-text">Join thousands of readers from Target, Citi, Spotify, Hulu, Google, Sephora, and other innovative brands who read our bi-weekly XP² newsletter, delivering educational content, research, and insights straight to your inbox</div><form class="mktoForm" data-formId="3876" data-formInstance="sub-inline"></form><div class="lc-privacy-wrapper"><div class="lc-privacy"> You may unsubscribe at any time. 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localStorage.setItem('utm_medium', dy_search_params.get('utm_medium'));
}
if(dy_search_params.has('utm_content')) {
localStorage.setItem('utm_content', dy_search_params.get('utm_content'));
}
if(dy_search_params.has('utm_campaign')) {
localStorage.setItem('utm_campaign', dy_search_params.get('utm_campaign'));
}
if(dy_search_params.has('utm_term')) {
localStorage.setItem('utm_term', dy_search_params.get('utm_term'));
}
if(dy_search_params.has('mkt_tok')) {
localStorage.setItem('mkt_tok', dy_search_params.get('mkt_tok'));
}
// Also, fill in the data inside the Marketo form once its available
if(typeof window.MktoForms2 === 'object') {
MktoForms2.whenReady(function(_form) {
var form = _form.getFormElem();
console.log('MKTO FORM READY');
// Append the mkt_tok param if it exists in the URL
var ls_mkto_tok = localStorage.getItem('mkt_tok');
if(ls_mkto_tok) {
_form.addHiddenFields({
mkt_tok: ls_mkto_tok
});
_form.vals({ mkt_tok: ls_mkto_tok });
}
// Fill in the UTM data from localStorage
var dy_utms = {
'utm_source': 'txt_source__c',
'utm_medium': 'txt_medium__c',
'utm_content': 'txt_content__c',
'utm_campaign': 'txt_campaign_name__c',
'utm_term': 'txt_term__c',
'gclid': ['GCLID__c', 'GCLID_c__c']
};
for(var i = 0; i < Object.keys(dy_utms).length; i++) {
var ls_key = Object.keys(dy_utms)[i],
ls_value = localStorage.getItem(ls_key),
form_key = dy_utms[ls_key],
form_field;
if(ls_value) {
if(ls_key === 'gclid') {
ls_value = JSON.parse(ls_value).value;
}
if(typeof(form_key) === 'string') {
form_field = form[0].querySelector('input[type="hidden"][name="' + form_key + '"]');
if(form_field) {
form_field.value = ls_value;
}
} else {
for(var j = 0; j < form_key.length; j++) {
form_field = form[0].querySelector('input[type="hidden"][name="' + form_key[j] + '"]');
if(form_field) {
form_field.value = ls_value;
}
}
}
}
}
// IP Address
fetch('https://www.cloudflare.com/cdn-cgi/trace').then(function(result) {
result.text().then(function(values) {
values.split("\n").map(function(item) {
var pair = item.split('=');
if(['ip'].includes(pair[0])) {
form[0].querySelector('input[type="hidden"][name="IP__c"]').value = pair[1];
}
});
});
});
// GA ID and Referrer
var dy_utms_cookie = {};
document.cookie.split(';').forEach(function(el) {
var splitCookie = el.split('=');
var key = splitCookie[0].trim();
var value = splitCookie[1];
dy_utms_cookie[key] = value;
});
if(dy_utms_cookie["_ga"]) {
form[0].querySelector('input[type="hidden"][name="Visitor_ID__c"]').value = dy_utms_cookie["_ga"].substring(6);
}
if(dy_utms_cookie["personalize_referrer_string"]) {
form[0].querySelector('input[type="hidden"][name="Referral__c"]').value = dy_utms_cookie["personalize_referrer_string"].substring(6);
}
// ZoomInfo
if(localStorage.getItem('ZoomInfoData')) {
var zoominfo_data = JSON.parse(localStorage.getItem('ZoomInfoData'));
if(zoominfo_data) {
form[0].querySelector('input[type="hidden"][name="Alexa_Rank__c"]').value = zoominfo_data.alexaglobalrank;
form[0].querySelector('input[type="hidden"][name="Employees__c"]').value = zoominfo_data.employeesrange;
form[0].querySelector('input[type="hidden"][name="Company_Revenue_Range__c"]').value = zoominfo_data.estimatedannualrevenue;
}
}
// Also, dispatch a dataLayer event on success
_form.onSuccess(function(values, follow_up_url) {
window.dataLayer = window.dataLayer || [];
if([3739, 4802, 5094, 5110, 4946, 5076, 5116, 5171, 5172, 5173].includes(_form.getId())) {
window.dataLayer.push({
'event': 'demo_request_complete',
'eventCallback': function() {
if(follow_up_url) {
window.location.href = follow_up_url;
}
}
});
return false;
} else if([3876].includes(_form.getId())) {
window.dataLayer.push({
'event': 'newsletter_signup_complete',
'eventCallback': function() {
if(follow_up_url) {
window.location.href = follow_up_url;
}
}
});
return false;
}
});
});
}</script> <script>if(typeof(jQuery) !== 'undefined') {
$ = jQuery.noConflict();
}
function getUrlParameter(sParam) {
var sPageURL = decodeURIComponent(window.location.search.substring(1)),
sURLVariables = sPageURL.split('&'),
sParameterName,
i;
for (i = 0; i < sURLVariables.length; i++) {
sParameterName = sURLVariables[i].split('=');
if (sParameterName[0] === sParam) {
return sParameterName[1] === undefined ? true : sParameterName[1];
}
}
}
$(window).load(function(){
var videoID = getUrlParameter('video');
if(videoID !== undefined){
if($('#wistia-' + videoID + '-1').length){
var videoName = $('#wistia-' + videoID + '-1').parents('.tab-pane');
videoName = videoName[0].id
}
if($('a[href="#' + videoName +'"]').length){
$('a[href="#' + videoName +'"]').each(function(){
$(this).click();
});
}
addScript('https://fast.wistia.com/embed/medias/'+ videoID +'.jsonp');
addScript('https://fast.wistia.com/assets/external/E-v1.js');
$('body').append('<span class="wistia_embed wistia_async_'+videoID+' popover=true popoverContent=link dy-wistia-popup" style="display:inline"></span>');
window._wq = window._wq || [];
_wq.push({ id: videoID, onReady: function(video) {
var video = Wistia.api(videoID);
video.popover.show(); // open the popover
video.play(); // play the video
setTimeout(function(){video.unmute();}, 500);
}});
}
});</script> <style>#adBanner {
background-color: transparent;
height: 0;
width: 1px;
}</style><div id="wrapfabtest"><div id="adBanner"></div></div></body></html>
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