Written by, Sandeep Kumar
Updated April, 11, 2022
Digital marketers consider generating tailored content for each customer as vital in a range of industries today.
From Coca-Cola to Spotify—all top brands dedicate a serious budget and planning to personalization strategies. Simultaneously, the customer need for personalized experiences grows every day. Therefore, the personalization level in marketing is now decisive in customer satisfaction.
We have compiled the recent personalized marketing statistics on customer behavior, marketing trends, and technologies to demonstrate how effective and beneficial having a one-to-one marketing strategy is.
Personalization in digital marketing takes new forms as the technologies used advance. Before betting on it, it is useful to have a clear idea of the benefits of personalization to see why it is crucial to be up to date with the trends and act accordingly.
Sources: (Epsilon, Forbes, Statista)
Customers love it when a brand recognizes them. We are now at an age where brands can do a lot more than sending generic emails merely including their name – especially when the appeal is this high!
A personalization marketing study carried out in 2017 with a thousand participants aged 18 to 64 indicated no less than 80 percent of respondents would more probably get involved with a company if it offers personalized experiences.
Sources: (Instapage By Postclick)
According to respondents, customer service and experience were the most common buyer criteria. In terms of customer service and experience, 77% of consumers said they’d choose a business that provided a personalized service or experience.
Customer experience statistics show that 90% of customers said they would agree to share their behavioral data to receive exclusive products they would be interested in. Hassle-free problem solving, receiving personalized recommendations, and finding products faster and easier are also among the reasons why customers agree to share their data.
It’s easy to cross the line when it comes to personalization and intrusion of privacy. A high chance brands might scare off customers by asking for too much information, spamming, or using data they haven’t agreed on providing.
Sources: (Smarterhq, Segment)
When we said customers were quite appealing to personalization, we weren’t kidding. There are a whole lot more emotions involved. For instance, other statistics showed no more than 71 percent of customers are irritated when their shopping experience is not related to their interests.
Following Gartner’s reports, as much as 14 percent of the marketing budget goes for personalization efforts. And yet, exactly 61 percent of respondents report either no results or unclear results from this very investment. However, just 3 percent of American businesses claimed to have some small data personalization.
Sources: (Smarterhq, Investopedia)
Personalized marketing analytics show that tailored messages that are as simple as just ‘welcome’ or re-engagement emails have increased revenue by more than 200%.
With a US population of roughly 320MM, the millennials occupy a considerable amount of consumers, and they are pretty good at finding their way around today’s digital technology. So much that 70 percent of them are irked when they receive emails not relevant to any of their interests because they know brands can do a lot better.
One of the keys to competing successfully and increasing sales is to use custom-made digital marketing services. Additionally, when consumers have personalized experiences, sales rise by 56 percent.
Source: (Harvard Business Review)
Consumer engagement analytics demonstrate a steep increase in interaction and website traffic, with a considerable increase in revenue even when a small dosage of personalization is at play.
A simple act of appreciation for previous customer behavior can do wonders. In an experiment conducted by Harvard Business Review (2018), researchers revealed the advertisement shown was based on the shoppers’ activity on the site—resulting in an 11% increase in click-through rates, more than 30% rise in the time spent scanning the product and a significant revenue increase.
Sources: (McKinsey, Forbes)
Personalization not only improves customer satisfaction but also boosts productivity in terms of overall marketing strategy.
Brands that utilize personalization exhibit an increase in efficiency by 10-30% regarding customer acquisition, lowering the expenditure dedicated to reaching out to new customers.
Source: (Successive Technologies)
According to the latest reports, personalization can boost revenue by 5 to 15 percent. What’s more, 90 percent of the top marketers claim that personalized content significantly contributes to overall business success.
Sources: (Piesync, Inc.com)
Other than disloyal customers, not implementing marketing personalization strategies can result in more or less 20 percent of customers sharing their negative experiences with their close family and friends.
The age-old imperative “there is nothing as bad publicity” doesn’t apply anymore. Moreover, it could be pretty dire for small-scale brands. Word of mouth marketing still maintains its mighty power, as more than 90 percent of customers trust their friends moreover other forms of media.
Sources: (Segment, HubSpot)
The most annoying thing for customers is when brands don’t take their complaints seriously. However, apparent mistakes like getting a customer’s name wrong or mistaking them for the wrong gender could also be risky.
More than 55% of customers say that it makes them see red when an unrelated product is suggested. These sorts of experiences of dissatisfaction can result in unsubscribing from the mailing list, and it can also lead to unfollows on social media and switching brands.
Recent marketing campaign reports reveal that a lack of relevance in the content in a typical marketing campaign leads to lower response rates by precisely 83 percent. Therefore, if you understand your customers’ demands, you can create this sort of instructional material.
Perhaps the chief result of personalized experience is the encouragement of brand loyalty. Personalized marketing statistics show that over 40% of customers that encounter a personalized shopping experience will more probably become repeat buyers. Simultaneously, as much as 39% of them are more likely to spread the word among their friends and family.
Sources: (Segment, Annex Cloud)
It is as easy as that! According to a survey by Brand Keys, boosting brand loyalty by as much as 7 percent can spike long-term profits for a customer up to over 80 percent.
Increasing loyalty can have a positive effect on expenses as well. The same eCommerce personalization statistics revealed that an increase in repeat buyers of as little as 3 percent could lead to a 10 percent reduction in price.
Sources: (Kibo, LaptrinhX)
Product recommendation is a great way to further interact with customers, and personalization marketing statistics indicate a significant rise in revenue if the data is used correctly.
A classic way of personalizing the experience is by recommending relevant products— that eventually pave the way to upsell. For instance, when a customer is presented with relevant product recommendations, it immensely increases the possibility of impulsive and instant buys.
Sources: (Segment, Globe Newswire)
Digital advertising personalization statistics show that shoppers are satisfied with the impulse purchases they made through various channels.
Let’s break it down:
Sources: (Campaign Monitor, Serpwatch.io)
Email marketing is one of the most fruitful ways to stay in touch with your clientele. Thus, allowing brands to announce offers, introduce new products, share industry insights, and increase overall engagement. Consequently, personalizing emails would mean tailoring all of the above for each customer individually, based on their previous activity and interests.
Email personalization statistics prove that utilizing personalized emails is an excellent way to make the best of this channel. However, transferring the personalized experience customers have on websites into emails would also increase website traffic to a great extent.
Website personalization includes adjusting the homepage to show content that aligns with the user’s demographics, previous activity on the website, or even different content depending on the time, day, or season.
Hearst Fujingaho, Japan’s lead publisher, implemented one-to-one marketing strategies on its website to improve customer satisfaction. The website personalization statistics of this particular case have shown an increase in page views and an improved circulation rate. To be precise, there was a 33% increase in brand recognition and an over 4% increase in click-through rate for content recommendations.
Sources: (Seismic, MarTech Advisor, Convince & Convert)
B2B and B2C personalization statistics don’t point out too much of a difference. For example, according to a survey by Seismic (2016) that included 180 enterprise stakeholders, the most quoted objective for B2B content marketing initiatives is lead generation with 70 percent. It is followed by sales team support and enablement, leadership efforts, and web traffic generation.
The CEO of Seismic, Doug Winter, concludes that content personalization is a clear “imperative” among B2B businesses, facilitating meeting the objectives mentioned earlier.
Sources: (Smarterhq, Forbes, AWS Amazon)
Amazon’s dynamic interface generates a distinctive homepage for each customer, mirroring their individual needs and wishes. Furthermore, using machine learning technology, delivers an array of personalized experiences—from specific product recommendations to product re-ranking and fitted direct marketing.
And it turns out it pays off tremendously. Consequently, more than 42 percent of customers buy from what Amazon is categorizing as a product recommendation. At the same time, an estimated 35 percent of purchases come from those recommendations alone.
Sources: (Smarterhq, Business Wire)
Amazon brilliantly uses personalized marketing trends by putting individual preferences into use, resulting in more meaningful interactions with its customers.
Its meticulous manner of operating has established a sense of trust with the customers as well. Around 50% of customers trust Amazon with their data and how they manage the same—surpassing Apple, Google, banks, airlines, hotels, and many more.
As for fast shipping, when combined with personalized experiences, Amazon keeps on revolutionizing brand-customer relationships.
Sources: (Retail Dive, Econsultancy)
According to personalization marketing stats based on a survey of six hundred senior marketers (North America and Europe), 77 percent of them had a documented personalization strategy and surpassed their revenue goals for 2018.
The competition is fierce, and brands that don’t implement personalization-specific financial incentives are lagging. The brands that surpassed their revenue goals invested in personalization fifty percent more than those that failed to meet their revenue expectations.
Sources: (BloomReach, FullStory)
Despite the clear results one-to-one marketing statistics show, businesses are still held back to personalization. Finding (and perhaps funding) the right technology seems to be blocking the path of optimum personalization strategy for most businesses.
Sources: (Forbes, 16best, Talent Crew)
Predictive personalization is the future, and AI and machine learning are the main driving forces behind it. By using the user’s past and live data, predictive personalization takes traditional personalization a step further. Therefore, 80% of brands that use AI dedicate it to personalize their content.
Furthermore, amongst the highest ranked enterprise priorities (2019) were the following:
As the personalization marketing market size grows, it is expected that fewer one-time projects will take place, and brands will go into a complete transformation to deliver more personalized engagement.
The overall conclusion is that personalization marketing statistics prove a significant increase in revenue when particular strategies are implemented, including a revenue increase from growing numbers of repeat buyers, indicating sustainable, long-term growth.
Also, the trends of personalization are growing and getting more complicated by the day. Simultaneously, more and more businesses invest in the latest technology to deliver a wholesome personalized experience to their customers.
Digital marketing has seen exponential growth, transforming at an incredible pace since the internet has taken over the world. Brands operate on at least three platforms at minimum, and digital marketers come up with new ways to communicate with customers through various channels.
As the number of notifications increases on customers’ devices, they have been growing criticism in their interactions with brands. They feel frustration upon receiving irrelevant offers and impersonal customer service and demand a personalized approach.
Personalization in marketing is essential to keep these interactions productive and thriving. Customers feel the time they spend on a brand’s channel is more effective and easy to navigate when their experience is personalized. This, in return, increases customer loyalty and brand recognition.
Personalization means serving relevant experiences for each customer and thus meeting their needs and expectations more efficiently. Among the others, making interactions more accessible and efficient too. In return, you can expect a rise in customer satisfaction, loyalty, and overall revenue growth.
Personalization might take many forms, yet email campaigns and product recommendations are the best ways to start. Getting to know your customers is pivotal and the most effective way to do it. Alongside targeted ads, preparing surveys (for each new customer) to enlist their interests can work for small-scale brands to compile a reliable data set for later divisions.
Following statistics, it’s clear that customers demand relevance in the marketing services they receive.
Therefore, personalized experiences play a definitive role in customer satisfaction; as shown in surveys, customers are prone to switch brands if they consider personalization insufficient. In other words, this proves that personalization is now closer to being a necessity than something added.
Hyper-personalization takes traditional personalization one step further by incorporating technologies like AI and machine learning. While traditional personalization uses a customer’s location or previous purchases, hyper-personalization works with other live data to deliver even more relevancy (including browsing and purchasing).
The process ranges widely; hyper-personalization can
And it stands in good stead: personalized marketing statistics show that more than 85% of marketers think that an AI-powered hyper-personalization strategy is making changes for the better. On the other hand, over 30% stated this change is significant.