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Industry Perspective

Failure to Scale:
The State of Personalization in Retail and Travel

Q3, 2021

Personalizing the shopper journey is an essential component for competing in the age of the ‘what I want when I want it’ consumer. Despite being the stated strategic goal of most, few have actually come close to achieving it. While firms want to personalize more than 70% of the digital shopper journey, there is a significant gap between the current and ideal level of personalization across touchpoints.

Firms can’t improve their personalization maturity without upgrading their core infrastructure. The three core elements at the heart of the personalization infrastructure are data, content, and delivery technology. Personalization at scale is a journey, and moving up the maturity curve requires a sharp focus on these three pillars: building their operating model to support personalization, having a unified view of the shopper and, having a solid process measure performance, incorporating feedback, and tracking external trends and benchmarks.

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As consumers continue to reshape their expectations,

enterprises must contend with a uniquely challenging landscape.

The consumer technology landscape is forever changing.

From Pinterest to TikTok, WeChat to Instagram, new experiences can rapidly gain consumer adoption and relevance.

Consumer, Technology, Incisiv

From augmented reality to voice, smartwatches to chatbots, consumers are constantly embracing new interaction paradigms.

Commoditized convenience is eroding loyalty and margin.

Consumers expect convenience. If you can't deliver it, they'll go elsewhere - e.g. next day shipping becoming the new standard.

Walmart will reportedly lose USD 1 billion on eCommerce revenue of USD 21 billion this year as it faces challenges in its bid to complete against Amazon – from trouble integrating its DNVB acquisitions to impact on margin from its next-day delivery operations.

Consumers value experiences that are curated to fit their lives better.

They want to engage, be served, and transact at their time, their pace, their place. They have little patience, infinite choice and the freedom to swipe left at the slightest hint of friction.

Consumer, Experience, Incisiv

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