"Personalization is a means of meeting customer needs more effectively and efficiently through increasingly relevant, uniquely tailored experiences - across the customer journey - at scale." - Marko Bon
Stage 1:
The good news is that the driving force behind Stage 1 is software. The dominant vendors at this maturity stage (Shopify Plus, Klaviyo, and Nosto) all have a focus on automation. Our job as operators in Stage 1 is to take advantage of that automation, and use our time to get to know our customers better. In my experience, a well executed Stage 1 model returns greater ROI than a poorly run Stage 2 model.
Stage 2:
Starting too early, or without a plan for each of the elements of the model can lead to poor returns. Stage 2 is a software + people + process plan. Some signs that the business is ready:
- Multi-channel (Online, App, Physical stores)
- Ability to add 4+ full-time employees to the operation
- Start dating Stage 2 at $20M in online revenue
- Model in place for Stage 2 at $50M - $100M in online revenue
