If pre-initiative, use assumptions: “We expect a 5% conversion lift on 20% of users,” and so on. Then prompt the AI to calculate the impact and frame the business case: “We plan to implement personalized homepages. We have 1 million monthly visitors and estimate a +10% engagement and +2% conversion increase. Calculate the potential annual revenue gain, other benefits, and ROI, considering a $500K project cost.” The AI will do the math (2% of conversions out of 1M visitors, multiplied by average order value, etc.) and likely produce an answer like: “This could generate approximately $XYZ additional revenue per year. With a cost of $500K, the initiative would pay back in N months, yielding an ROI of ____. Additionally, it may improve customer retention (harder to quantify, but significant).”
Tactic 6
ROI Estimation and Business Case for Personalization
What it is:
Ensure your personalization efforts are backed by
a solid understanding of their return on investment.
Use AI to project and articulate the ROI of
personalization initiatives – whether it’s the expected
lift from a new personalized feature or the cost
savings of automating content with GenAI. This helps
in securing executive buy-in and budgeting for
personalization at scale.
You can also ask the AI to draft a business case summary:
“Explain the ROI of our personalization program in a few sentences for an executive update.”
How to use it:
Much like in experimentation, start by gathering
It might return something like:
the key numbers. For example: “Personalized
“Our personalization program is driving a 15% higher average order value among targeted segments, translating to $5M in incremental revenue this year – far exceeding the $1M investment. This 5x ROI underscores the value of scaling personalized customer experiences.”
recommendations increased average order value
by X, for Y users, with Z implementation cost.”
Such language can be directly used in reports or presentations.
GenAI Quick-Win Playbook for Personalization
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