When Larry Drebes, CEO of Janrain, set out to study consumer experiences online earlier this summer, he knew that relevant content it would be at the forefront of consumers’ minds. For years we have seen personalized recipient emails perform better than their generic counterparts. But perhaps what you couldn’t have anticipated was how much consumers expect personalization at every stage of their buying process. Indeed, almost three-quarters of those surveyed in the national survey He expressed frustration at the content that does not recognize them and does not suit their interests. “This results [indicate] that consumers have reached the tipping point when it comes to displaying content that is not relevant to them, ”explained Drebes. “Consumers have been quite consistent and clear in their comments, the way to avoid alienating them is to give them what they want: personalized and relevant content using their data in a responsible and transparent way.” To put it plainly, consumers don’t just like personalized marketing experiences. They wait for you. Here are 24 statistics to show why you need to embrace personalized marketing in 2020.
Benefits and challenges of personalized marketing
Message personalization is the number one tactic used by email marketers to increase engagement rates. (HubSpot) More than 20% of marketers say personalization can improve email engagement. (HubSpot) 99% of marketers say personalization helps improve customer relationships, and 78% say it has a “strong” or “extremely strong” impact. (Evergage) 80% of consumers are more likely to make a purchase when brands offer personalized experiences. (Epsilon) 90% of US consumers find personalized marketing content from something to very attractive. (Statista) 78% of marketers say that email is the most personalized channel, followed by websites, which was pointed out by 56% of marketers. (Evergage) The biggest challenge for ABM teams is customizing their strategy. (HubSpot) 40% of marketers say their biggest challenge with personalization is linking to data-related technologies, while 34% struggle with poor data quality. (Experian) 78% of brands say they have trouble with “data debt” or don’t have enough quick data on their customers not to launch relevant personalization tactics. (Experian)
Personalized Marketing Consumer Preferences
92% of marketers say customers and prospects expect a personalized experience, up from 85% in 2019. (Evergage) 45% of consumers say the “coolest” tactic they’ve ever seen is when a brand apologizes for bad shopping experiences. (Accenture) 74% of consumers would consider “live profiles” valuable if they could be used to select the experiences, offers and products they receive. (Accenture) 67% of consumers believe it is important for brands to automatically adjust content based on the current context. When brands don’t adjust accordingly, 42% of consumers will be “upset” that the content isn’t personalized. (Adobe) 82% of consumers interact primarily with marketing content on smartphones, while 63% interact with content primarily on computers. (Adobe)
Data privacy preferences
83% of shoppers would trade data for a more personalized experience. (Accenture) In a 2019 study, 79% of consumers surveyed believed companies knew too much about them, but 90% were still willing to share behavioral data for a cheaper and easier brand experience. (SmarterHQ) Three in four consumers say that a business has never communicated with them online in a way that seems too personalized or invasive. (Accenture) Of the quarter of consumers who have received a personal or invasive brand experience, 64 percent) say it was because the brand had information about them that they did not knowingly or directly share. (Accenture) In an Accenture survey, consumers said that the “scariest” personalized marketing tactics involved texting or sending a notification when someone walked by a brand’s store and launched social media ads for items that they sold. consumers consulted on a brand website. (Accenture)
Anonymous personalization vs. permission-based personalization
There are different opinions in marketing about the right time in the customer lifecycle to use personalization. While some argue that personalization should only take place after the end viewer has knowingly provided information to the company, other companies use anonymous data, such as the location attached to the viewer’s IP address, to target viewers by location. When developing your personalization strategy, you will need to decide what is the right approach for your business and your customers. Regardless of what technology allows, it is essential that your strategy begins and ends with customer needs and preferences. For many, that will mean waiting until the customer has engaged with you before personalizing content. 42% of marketers surveyed say they personalize using anonymous data. (eConsultancy / Adobe) 57% agree to providing personal information on a website as long as it is for their benefit and is used responsibly. (Janrain)
77% would trust companies more if they explained how they are using personal information to improve their online experience. (Janrain) 62% of adults under 34 are willing to share their location to get more relevant content. (Jiwire)
Navigating Marketing Personalization
We have entered an exciting time for both sellers and buyers. The ability to create unique experiences for each potential customer will undoubtedly lead to more relevant, useful and enjoyable shopping experiences. As we navigate this new space and develop strategies, it will be important to have an open discussion about what is working and what is not working in the world of personalization. This data is helping to frame the early stages of that conversation. Hopefully next year will result in more results and good business case studies. use personalization to create a more “human” marketing experience. Editor’s Note: This post was originally published in September 2013, but was updated on May 11 for more complete and current.