New L2 Report Helps Brands Navigate the Targeting Gap

NEW YORK, Oct. 19, 2016 -- Digital benchmarking firm L2 Inc. today released the first annual Intelligence Report: Data & Targeting 2016. The report evaluates the approach and performance of 106 consumer brands on data capture, personalization, targeting, and loyalty. Verticals covered include Department Stores, Travel, Big Box, Beauty, Activewear, Apparel, and Home.

“Today’s brands are struggling with the sheer weight of operational challenges that deploying successful targeting efforts entail,” said Evan Neufeld, Vice President of Intelligence for L2. “L2 analysis indicates an abundance of simple tasks—from improved data collection to better deployment of on-site personalization—that brands can focus on to improve their targeting and personalization efforts in small but meaningful ways.”

Key findings from L2's report include:

• Mind the Gap: A disconnect exists between brands’ investments in on-site data capture and personalization. Brands are consistently better at collecting data on-site than deploying it to personalize the consumer experience.
• Transparency Wins: Only 14 percent of Index brands’ websites explain why they collect data during account signup, and only 13 percent of sites have a popup that explains the site’s cookie or privacy policy. Yet most customers report they are willing to share data with brands who are transparent about how this data will be used.
• Personalization Matters on Mobile: Mobile apps that include personalization features received higher average consumer reviews and ratings than those that did not emphasize personalization. Offering a personalized consumer experience can help brands break through the clutter of crowded app stores.
• Slow Push to Messaging: Across promotional SMS messages from 34 Index brands that allow consumers to opt into SMS alerts, no personalization was detected. Brands with SMS options should leverage the tool not only during the last mile, but also to provide personalized offers.
• The Trojan Horse: Across Index brands, a clear hierarchy emerged between the 42 brands that offer a loyalty program and the 62 brands that do not. However, not all loyalty programs are created equal. Brands that garner the greatest ROI from loyalty programs use loyalty data to better target and personalize scaled marketing communications across a broader consumer base.
  

“Just as personalization tactics help brands target consumers, each brand must find the personalized, individual strategy that works for them,” said Taylor Malmsheimer, Senior Research Associate at L2. “What a brand does with its data is more impactful than merely having the data. Winning brands don’t only collect data—they deploy it across digital properties.”

The report features case studies on brands including but not limited to: Aeropostale, Bed Bath & Beyond, Harry’s, Home Depot, Lancôme, Sephora, and West Elm.

Download a complete copy of L2’s Data & Targeting report here.

About L2
L2 benchmarks the digital performance of over 1,800 brands across 14 industries globally. Our proprietary Digital IQ Index® is the global standard for measuring digital competence. We analyze 1,250 data points across site & e­commerce, digital marketing, social media and mobile to provide brands with actionable, data­ driven insights on their digital performance.

Elizabeth Cooke
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