When Larry Drebes, CEO of Janrain, studied the experiences of online consumers earlier this summer, he knew that relevant content would come first with consumers. We’ve seen for years that email tailored to the recipient outperforms their generic counterparts.
But maybe he couldn’t have predicted how much consumers were expecting personalization at every stage of their buying process. In truth, almost three quarters of respondents in the national survey expressed frustration over content that they do not recognize and adapt to their interests.
“These 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 pretty consistent and clear in their feedback. To avoid alienation, they need to give what they want – personalized, relevant content that uses their data in a responsible and transparent way.”
To be clear, consumers don’t just like personalized marketing experiences. You are expecting them. Here are 24 stats to prove why you need to choose personalized marketing in 2020.
Benefits and challenges of personalized marketing
- Message personalization is the number one tactic email marketers use to increase engagement rates. (HubSpot)
- Over 20% of marketers say personalization can improve email engagement. (HubSpot)
- 99% of marketers say personalization drives customer relationships. 78% state that it has a “strong” or “extremely strong” influence. (Evergage)
- 80% of consumers are more likely to shop when brands offer personalized experiences. (Epsilon)
- 90% of US consumers find personalized marketing content somewhat to very engaging. (Statista)
- 78% of marketers say email is the most personalized channel, followed by websites 56% of marketers said it was. (Evergage)
- The biggest challenge for ABM teams is personalizing their strategy. (HubSpot)
- 40% of marketers say their biggest personalization challenge is integrating with data-related technologies, while 34% struggle with poor data quality. (Experian)
- 78% of brands say they are struggling with “data debt” or do not have enough data about their customers to start relevant personalization tactics. (Experian)
Consumer Preferences of Personalized Marketing
- 92% of marketers say customers and prospects expect a personalized experience – up from 85% in 2019. (Evergage)
- 45% of consumers say the “coolest” personalized tactic they’ve seen is for a brand to apologize for a bad shopping experience. (Accenture)
- 74% of consumers would find “living profiles” valuable if they could be used to curate the experiences, offers and products they receive. (Accenture)
- 67% of consumers think it is important that brands automatically adapt content to the current context. When brands don’t adapt accordingly, 42% of consumers are “annoyed” that content is not personalized. (Adobe)
- 82% of consumers are primarily concerned with marketing content on smartphones, while 63% are primarily concerned with content on computers. (Adobe)
- 83% of shoppers would share 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 branding experience. (SmarterHQ)
- Three in four consumers say no business has ever communicated with them online in a way that felt too personal or invasive. (Accenture)
- Of the quarter of consumers who received a personal or invasive brand experience, 64 percent said the brand had information about them that they did not knowingly or directly share. (Accenture)
- In an Accenture survey, consumers said the “scariest” personalized marketing tactic was to send a text message or notification when someone passed a branded store and launched social media ads for items that consumers on one Searched brand website. (Accenture)
Anonymous vs. authorization-based personalization
In marketing, there are different opinions about the appropriate point in the customer lifecycle to use personalization.
While some argue that personalization should only take place after the end viewer has consciously provided information to the company, other companies use anonymous data, such as location appended to a viewer’s IP address, to target viewers by location . As you develop your personalization strategy, you need to decide which approach is right for your business and your customers.
- Regardless of the technology that enables this, it is important that your strategy starts and ends with the customer’s needs and preferences. For many, this means waiting for the customer to contact you before personalizing any content.
- 42% of the marketers surveyed say they personalize with anonymous data. (eConsultancy / Adobe)
- 57% agree to post personal information on a website as long as it is to their benefit and used responsibly. (Janrain)
- 77% would trust companies more if they explained how they use personal information to improve their online experience. (Janrain)
- 62% of adults under 34 are willing to share their location for more relevant content. (Jiwire)
Navigate Marketing Personalization
We have entered an exciting time for marketers and buyers. The ability to create unique experiences for each potential customer will undoubtedly lead to buying experiences that are more relevant, useful, and enjoyable.
As we navigate and strategize through this new space, it will be important to have an open discussion about what works and what doesn’t in the world of personalization.
This data will help determine the early stages of this conversation. Hopefully the coming year will see more results and good case studies from companies that use personalization to create a more “human” marketing experience.
Editor’s Note: This post was originally published in September 2013 but updated on May 11 for completeness and freshness.