Personalization has become one of the most indispensable marketing strategies among B2B and B2C marketers worldwide. This one-to-one marketing approach uses real-time data and insights to deliver qualitative messages to consumers, thereby representing a drastic shift from the quantity-based marketing mindset of the past. Gone are the days when all customers and prospects were lumped together into one homogeneous mass, and due to the ever-increasing consumer demand for relevant and unique marketing content, the strive for personalization will only accelerate in the future. By 2023, for example, the global revenue of customer experience personalization and optimization software is projected to surpass nine billion U.S. dollars. And while the share of marketing budgets devoted to personalization can vary, many companies are already spending more than half of their budgets on personalization efforts today.
Marketer perspective: personalization is paramount
Marketers are implementing personalization tactics into their marketing activities more vigorously than ever. After all, personalization can help companies gain a competitive edge in today’s highly contested e-commerce space. Roughly half of all surveyed B2C marketers from various global markets stated that they personalized experiences for customers often. Meanwhile, over 30 percent indicated that they always did so as of early 2022. One way of ensuring a high degree of personalization is by using artificial technology, and a recent survey showed that the personalization of content was one of the main activities marketers assigned to AI. This is no surprise considering that AI can automatically implement consumer data into customized e-mail messages ranging from newsletters to cart abandonment reminders. Despite these technological possibilities, only 35 percent of surveyed business managers were satisfied with their overall level of omnichannel personalization in 2022, highlighting that there is still ample room for growth and innovation.
Consumers value personalized online experiences
Consumers receive thousands of generic advertising messages each day that are not tailored to their needs or interests. This constant exposure to irrelevant marketing helps explain why shoppers nowadays appreciate and even expect personalized experiences when browsing the web. Research showed that well-suited ad messages can make or break a brand’s image, and in 2022, over 60 percent of surveyed online shoppers stated that brands delivering unpersonalized content would lose their loyalty. Many internet users are willing to share their e-mail addresses or other information with companies to receive the most customized offers. Despite all that, netizens also voice concerns about online data usage, driving Google and other tech giants to eliminate third-party cookie tracking from their browsers. Knowing that consumer data is vital to marketers’ decision-making processes, it will be interesting to see how companies can achieve personalization in a cookieless digital space.
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J. G. Navarro
Research expert covering advertising and marketing with a focus on South America