Personalization Squared: Consumers Want Both Benefits And Data Security


Personalization Squared: Consumers Want Both Benefits And Data Security




by , June 4, 2021

Consumers and brands are of two different minds when it comes to personalization. 


While 75% of business leaders say personalization is “table stakes” for digital , only 52% of consumers say their satisfaction improves as brands become more personalized, according to the State Of Personalization, a study by Twilio Segment.


And whereas 85% of brands believe they are providing personalized experiences, only 60% of consumers feel they are getting them. 


That’s too bad, as 60% of those same shoppers are likely to become repeat buyers after a personalized experience — up from 44% in 2017. But 45% will take their business elsewhere if the firm fails to provide it. 


Consumers clearly want it both ways. 


On the one hand, they wish brands knew more about their:



  • Style preferences and what suits me — 40% 
  • Household needs — 24% 
  • Economic situation — 20% 
  • Goals and dreams — 14%

And 69% appreciate personalization when it’s based on data they’ve shared directly with the business. 


But their faith in companies is provisional: 37% trust brands to keep their data secure and to use it responsibly, while 37% don’t trust them to do so.  


Yet 48% of shoppers appreciate the benefits of personalization if their data is secure. And 42% expect to receive a relevant discount within hours (or even sooner) of identifying themselves to a brand.


What attracts shoppers to retailers? They want to know the brand:



  • Is trustworthy and transparent — 55% 
  • Is socially and environmentally responsible — 16%
  • Offers a smooth digital experience — 14% 
  • Offers a high level of personalization to me — 10%
  • Is well known and popular among my peer group — 6% 

For their part, brands are facing many serious challenges these days: 



  • Reaching new customers — 57%
  • Getting accurate customer data for personalization — 43%
  • Balancing personalization and customer data privacy — 41%
  • Achieving consistent messaging across channels —4 0%
  • Bringing internal teams together — 29%
  • Tracking the ROI of personalization efforts — 28%
  • Other — 1%
  • None of the above — 5% 

To help deliver that, 80% of brands are using at least some first-party data to personalize the customer experience. Their goals in using it are:



  • It is easier to manage because we own it — 46%
  • It provides better privacy for our customers — 45%
  • It’s easier to obtain — 42% 
  • It’s more cost-effective to obtain — 40%
  • Because it’s the most ethical approach — 37%
  • Because our customers want us to do this — 36%
  • That’s where the industry is headed — 27%
  • Easier to comply with government regulations — 27% 
  • We are preparing for the phasing out of third-party cookies — 21%

Despite the results shown above, fewer than 25% of businesses have invested successfully in omnichannel personalization. 


Moreover,  21% say technology and data are barriers to omnichannel success, and 21% don’t see the ROI.  


One reason may be that 53% are focused on improving existing channels instead of expanding into new ones. 


Segment surveyed 2,700 consumers who purchased something online in the past six months and 300 managers/decision makers at consumer-facing companies that provide goods or services online. The survey was conducted from April 8 to April 20, 2021. 

MediaPost.com: Search & Performance Marketing Daily

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