If hearing about personalization from the left and the right brought you here, strap in. You’ll be hearing about it much, much more. According to McKinsey’s report, personalized experience is set to become the cornerstone of marketing success within the next five years. Ignoring personalized marketing is no longer an option; it must become a top priority.
Yet, it comes with its challenges. Today, most personalization efforts hinge on cookies and third-party customer data. Given the escalating concerns surrounding data privacy, the future of marketing personalization is uncertain.
However, not to get too ahead of ourselves, there are still many ways businesses can provide personal experiences. Curious? Then read on as this blog post provides the personalization stats and latest trends of personalized marketing that can help you climb to the top.
But first, let’s see how implementing personalization can benefit your business.
Benefits of Personalization
To personalize or not to personalize… actually, there’s no question, as with personalized and segmented campaigns, you can expect:
Improved customer engagement and loyalty
By tailoring your interactions with customers based on their preferences and behavioral data, you can make them feel like valued individuals. This personalized approach fosters stronger customer relationships and customer loyalty.
Increased conversion rates and sales
When you deliver personalized messaging and offers that speak directly to your customers’ needs, you’re more likely to grab their attention and inspire them to act. This translates to more conversions and increased sales over time.
Improved brand perception and customer experience
Personalization shows your customers that you’re listening and care about their needs. Delivering personalized experiences consistently across channels creates a positive impression that strengthens customer loyalty to your brand. This enhanced customer experience sets you apart from competitors and keeps customers coming back for more.
Key Personalization Statistics
Here are 55+ marketing statistics to fill your hungry marketer brains with:
Top Personalization Statistics
- 71% of consumers feel frustrated when a shopping experience is impersonal.*
- 63% of consumers will stop buying from brands that use poor personalization tactics.*
- 83% of consumers are willing to share their data to create a more personalized experience.*
- 84% of consumers say being treated like a person, not a number is very important to winning their business.*
Personalization Marketing Statistics
Now that the jaw-dropping statistics are out of the way let’s look at personalization marketing through some in-depth statistics:
- 36% of consumers say retailers need to do more to offer personalized experiences.*
- More than 50% of consumers are willing to share information on products they like to get personalized discounts.*
- 59% of consumers say personalized engagement based on past interactions is crucial to winning their business.*
- 70% of consumers say a company’s understanding of their personal needs influences their loyalty.*
- 1 in 3 marketers spend at least half their marketing budgets on personalization.*
Email Personalization Statistics
Email personalization benefits customers and businesses: improved customer experience ensures the audience receives messaging and offerings tailored to their preferences. This leads to more engaged readers who are more likely to take action, resulting in a higher return on investment for businesses.
So, what are the most effective personalization tactics? As you’ll see from the statistics below, segmented campaigns and individualized email messaging are key drivers of success:
- 71% of customers prefer tailored experiences, influencing their decision to engage with emails.*
- Message personalization ranks as the top tactic email marketers employ to boost engagement rates.*
- 37% of customers prefer receiving personalized suggestions based on their interests for more engaging emails.*
- Personalization improves email open rates: emails with personalized subject lines see a 20.66% open rate compared to 19.57% for non-personalized ones.*
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Find more shocking numbers on email marketing in the article about latest email marketing statistics and ROI figures.
Website Personalization Statistics
Ever noticed how websites seem to cater to your preferences? That’s website personalization at work. Instead of a one-size-fits-all approach, companies customize your online experience based on your interests and needs. Why? Well, it can increase your business revenue by 10-15%.
If that came as a surprise, wait until you get to know other statistics about website personalization:
- About 56% of companies implement website personalization.*
- A significant 74% of customers express frustration when website content lacks personalization.*
- First-time customers often seek personalization to facilitate navigation across both offline and online stores.*
Digital Advertising Personalization Statistics
People notice only what interests them. And sometimes it’s ads. But what can make an ad truly catch attention? You must be rolling your eyes if you went this far in the article. Of course, it’s personalization.
Digital advertising personalization efforts are all about using your information about your customers to create a more personalized shopping experience. One of the most common manifestations of this is ads with product recommendations. For example, if a marketer caught that you’re in for running shoes, you might get targeted with online ads everywhere you go. Because it works well. At least, according to the statistics:
- When customers receive transparent ads based on their activity on a site, the product’s revenue grows by 38%.
- 76% of customers said personalized messages were essential in enhancing their consideration of a brand, and 78% said such communication made them more willing to repurchase.
- Only 32% of marketers personalize digital advertising.
- 96% of advertising professionals in the music, movies, and media sectors use personalization in their marketing efforts.
Content Personalization Statistics
Content personalization involves using data to create and share relevant content with specific audiences or individuals on web pages, email, and other forms of content. 71% of customers expect companies to deliver personalized content, so not adhering to their wishes can leave much on the table. Think engagement, revenue, and, indeed, brand loyalty. Let’s look closer at this claim:
- Around 3 in 5 marketers say content is the most used format for personalization.*
- Almost 9 in 10 industry professionals claim that customers expect some personalized content.*
- 66% of consumers say encountering content that isn’t personalized would stop them from making a purchase.*
- Marketers report personalizing content and experiences based on campaign source (49%), pages/content viewed (35%), email opens (34%), products purchased (33%), email click-throughs (32%), demographics (32%), clicks (30%), geolocation (28%), stage of customer journey (27%) and previous visit behavior (26%).*
Personalization ROI and Conversion Statistics
We’ve talked about engagement rates, customer satisfaction, and experience, but what about top personalization statistics that show a measurable lift in revenue? It calls for a deeper look:
- 18. 90% of leading marketers say personalization significantly contributes to business profitability.
- Personalization can increase marketing spend efficiency by up to 30%.
- Personalization can reduce customer acquisition costs by up to 50%.
- Companies that thrive at personalization earn 40% more money from these activities than the average competitor.
Personalization and Customer Loyalty Statistics
If you were asked for 10 companies that do customer loyalty right, Amazon would probably be somewhere in there. It’s a company that has been rocking personalization, namely personalized discounts and recommendations, for over 2 decades now and has kept growing all those years.
“If we want to have 20 million customers, then we want to have 20 million ‘stores.’… Our mission is to be the earth’s most customer-centric company.”
Amazon founder Jeff Bezos
In statistics language, it would translate as:
- 36% of customers will return to a brand if they have had a positive experience, even if cheaper or more convenient alternatives exist.*
- After a personalized shopping experience with a brand, 60% of shoppers think they will become repeat buyers.*
- 76% said personalized messages were essential in enhancing their consideration of a brand, and 78% said such communication made them more willing to repurchase.*
- 80% of people who identify as frequent shoppers say they only purchase with businesses that tailor their experience.*
- Millennial brand loyalty increases by 28% if they receive personalized communication.*
Personalization and Data Privacy Statistics
Personalization raises important concerns about safeguarding people’s data. When companies collect data to customize experiences, they must handle it carefully.
However, striking a balance between offering personalized experiences and respecting privacy isn’t easy. So, let’s delve into some intriguing statistics to better understand this delicate balancing act:
- According to 53% of firms, first-party data provides them with high-quality data for personalization.*
- Personalization is appreciated by 69% of customers as long as it is based on data they have explicitly shared with a business.*
- According to 80% of organizations, they use at least some first-party data to personalize the consumer experience.*
- While 37% of customers trust firms to keep their personal data safe and utilize it responsibly, 37% do not trust online merchants with their personal data.*
- 87% of respondents (87%) stated they wouldn’t do business with an organization if they were concerned about its security policies.*
Mobile Personalization Statistics
Given that there are 7.41 billion mobile users worldwide and the number is expected to grow, mobile personalization should be on top of you personalization list. After all, personalization works only if it’s consistent.
These statistics will guide your way:
- 48% of individuals find it generally acceptable for companies to use their purchase history for tailoring personalized offers via mobile, provided they have the option to opt in and out.*
- 41% of respondents deem it acceptable for businesses to leverage their purchase history for delivering personalized offers via mobile, especially if these offers are relevant to their previous interactions with the business.*
- 66% of people express frustration when a company’s shopping cart isn’t synchronized with their mobile apps.*
Personalized Customer Experience Statistics
Consumers now expect completely personalized experiences when engaging with brands. You see them off to competitors’ doors if you don’t provide it. While it’s a nice gesture, it can break your business results irreparably.
These statistics paint a good personalized customer experience picture:
- 66% of customers expect brands to understand their wants and needs.*
- Improved customer experience is the top benefit of personalization, according to marketers.*
- Product recommendations and predictive customer service are the top two personalization uses in marketing.*
- 60% of consumers say they’ll become repeat customers after a personalized shopping experience.*
Omnichannel Personalization Statistics
Personalization isn’t a one-time thing. Nor it’s a one-place thing. To create a truly personalized experience, a business must do it constantly throughout. It’s called omnichannel personalization, and these statistics prove that it’s here to stay despite some challenges:
- 43% of companies perceive accurate, real-time customer data as the most difficult hurdle to their personalization efforts.*
- According to 21% of firms, technology and data are roadblocks to omnichannel personalization success.*
- 21% of firms believe they don’t see a return on investment from omnichannel personalization.*
The Future Of Personalization
The desire for personalized experiences will only grow stronger as we look ahead. Customers are craving tailored interactions and products more than ever before.
Advanced analytics, technological, and data advances will create much more personal and “human” experiences across moments, channels, and customer journeys. But here’s the catch: concerns about data privacy are casting a shadow over this progress.
With access to third-party data becoming increasingly limited, companies face a tricky question: How do we keep personalization thriving despite tightening privacy restrictions?
- Around 4 in 5 marketers could abandon personalization efforts by 2025.*
- 67% of North American and European ecommerce companies plan on investing more in personalization.*
- 61% of high-growth companies are shifting toward first-party data for their personalization strategies.*
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*Sources:
- http://grow.segment.com/Segment-2017-Personalization-Report.pdf
- https://www.smartinsights.com/ecommerce/web-personalisation/consumers-personalized-marketing-engagement/
- https://www.accenture.com/content/dam/accenture/final/a-com-migration/pdf/pdf-83/accenture-making-personal.pdf
- https://www.salesforce.com/resources/articles/customer-expectations/?sfdc-redirect=369
- https://www.salesforce.com/resources/articles/customer-expectations/?sfdc-redirect=369
- https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying
- https://www.retailtouchpoints.com/topics/customer-experience/nrf19-36-of-shoppers-want-better-personalization-but-hesitate-to-share-personal-info
- https://www.statista.com/statistics/1208559/marketing-personalization-budget-share/
- https://www.dynamicyield.com/files/research/state-of-personalization-in-email.pdf
- https://www.hubspot.com/marketing-statistics
- https://www.campaignmonitor.com/resources/guides/email-marketing-new-rules/
- https://c.smarterhq.com/resources/Millennials_Report.pdf
- https://www.statista.com/statistics/451788/digital-marketing-channels-with-personalized-communication/
- https://instapage.com/blog/personalization-statistics
- https://www.invespcro.com/blog/online-shopping-personalization/
- https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying
- https://hbr.org/2018/01/ads-that-dont-overstep?autocomplete=true
- https://www.statista.com/statistics/451788/digital-marketing-channels-with-personalized-communication/
- https://www.statista.com/statistics/1211614/marketing-personalization-usage-category-us/
- https://www.slideshare.net/adobe/adobe-personalization-2020-survey-of-consumers-and-marketers?from_action=save
- https://www.marq.com/blog/content-marketing-statistics-will-make-you-think
- https://blog.adobe.com/en/publish/2018/01/06/adobe-2018-consumer-content-survey
- https://www.clickz.com/roi-advanced-personalization/255692/
- https://www.thinkwithgoogle.com/future-of-marketing/creativity/marketing-personalization-statistics/
- https://www.adweek.com/brand-marketing/despite-recognizing-the-importance-of-personalization-marketers-are-still-missing-the-mark/
- https://gopages.segment.com/rs/667-MPQ-382/images/State-of-personalization-report_reduced.pdf
- https://c.smarterhq.com/resources/Privacy-Personalization-Report.pdf?mtime=20200616175059&focal=none
- https://www.statista.com/statistics/809137/leading-personalization-types-marketers-worldwide/
- https://www.statista.com/topics/4481/personalized-marketing/
- https://www.gartner.com/en/newsroom/press-releases/2019-12-02-gartner-predicts-80–of-marketers-will-abandon-person
- https://www.statista.com/statistics/1174164/investing-personalization-ecommerce-companies-worldwide/
- https://www2.deloitte.com/content/dam/insights/articles/us164911_gmt_2022_master/DI_2022-Global-Marketing-Trends.pdf
Author bio
Vesta Oldenburg is a content writer specializing in email marketing strategies. In her daily work, creativity intertwines with a strategic mindset to create content that captivates its readers.
