20+ Telling Personalization Statistics [2023]: Investment, ROI, and More

Research Summary: In the age of vast internet access and the countless options that go hand-in-hand with that, more and more customers expect personalized options. While offering these options to customers may seem like a headache at first, there are many benefits to increasing personalization.

If you want to find out more about just how popular personalization has become, here are some crucial insights our research uncovered:

80% of consumers are more likely to buy from a company that offers a personalized experience.
71% of consumers become frustrated when a business doesn’t offer personalized experiences.
Companies make 40% more revenue by adding personalization to their marketing strategy.
88% of marketers say an improved customer experience is the biggest driver for investing in personalization.
89% of companies are investing in personalization.

For further analysis, we broke down the data in the following ways:
Consumer Opinions | Consumer Behavior | Marketer Opinions | Benefits

Consumer Opinions on Personalization

Customer opinions on personalization are part of what drives its popularity. People enjoy products tailored to their specific needs, even if those products cost more. To find out more about how customers feel about personalization, here are some key facts:

62% of consumers expect personalization.

Online shopping has not only popularized personalization, but has also in many ways, made it the norm. As of 2023, the majority of consumers now expect some measure of personalization during their purchasing experience.
Over 50% of consumers have experienced creepy engagement tactics.

More specifically, 56% have experienced creepy tactics from banks, 52% from healthcare companies, and 51% from technology companies.
81% of consumers want more targeted promotional offers and discounts.

96% of people actively search for online coupons before making a purchase, with a large majority of them wanting more of those deals to be personalized.
69% of consumers want a consistent, personalized experience across all channels.

Despite personalization being considered an online phenomenon, more and more consumers are expecting personalization in physical stores as well.
70% of consumers agree that a company’s ability to understand their needs impacts loyalty.

And given that 61% of small business revenue comes from repeat customers, personalization is an incredibly effective way to improve business.
Only 22% of customers find their retail experience to be personalized.

Retail, especially in physical stores, has a long way to go on the personalization front. The majority of customers think that their retail experience isn’t personalized and could be more personalized.

Consumer Behavior Around Personalization

The level of personalization a company offers can affect customer loyalty and purchasing behavior, among other things. For example, here are some key statistics about personalization and customer behavior:

72% of consumers only engage with personalized messaging.

Many customers ignore or don’t trust things like advertising, promotions, and offers, especially through email. Instead, a growing number of customers will only interact with personalized messaging.
77% of consumers are willing to share data with brands to receive personalized experiences.

In many cases, data can be more valuable to companies than actual sales. With it, companies can produce more effective marketing campaigns or sell data to third parties. The fact over three-fourths of consumers are willing to share data for personalization can provide massive gains.
91% of consumers are more likely to engage with brands that provide relevant offers and recommendations.

No one wants to receive an email promoting lawnmowers when they are specifically looking for painting supplies. Knowing that, companies can gain a crucial edge by learning what a consumer is interested in and only marketing those specific items to the individual.
44% of consumers become repeat buyers after a personalized shopping experience.

On the other hand, only around 15% of customers without a personalized experience become repeat buyers, which is less than sufficient for the 20-30% of repeat buyers recommended to keep a business healthy.

Marketer Opinions on Personalization

Marketers have also formed opinions on personalization based on the results of implementing it as a marketing strategy. To dive deeper into what marketers have noticed, here are some key facts:

90% of marketers say personalization contributes significantly to profitability.

That number comes from marketers surveyed in North American companies that earn at least $250 million per year in revenue, showing that the most successful marketers agree that personalization increases profitability.
89% of marketers see positive ROI from personalization.

On average, personalization results in 5-8x times the ROI on marketing spend, which is equivalent to earning up to $8 for every $1 spent.
88% of marketers say an improved customer experience is the biggest driver for investing in personalization.

In fact, 63% of consumers now expect personalization as a standard of customer experience, showing how important it is for marketers not to neglect personalization.

Benefits of Personalization

There are many benefits that come along with improving personalization for consumers. Here are some of the top benefits for companies in 2023:

90% of consumers find personalized content very appealing.

Meanwhile, only 4% of consumers don’t find personalized content appealing, making it almost unanimously appealing.
Personalized spending can increase ROI by up to 2,000%.

Some marketers have seen a 20x increase in ROI when implementing personalized content. However, the average increase is 5x-8x.
Personalization drives a 10% – 15% revenue lift for companies.

Personalization increases sales and ROI, which ultimately increases revenue. For this and many other reasons, personalization is well worth the investment.

Personalization FAQ

What percentage of customers want personalization?

71% of customers want personalization. That number doesn’t exactly outline how important personalization has become, though, as 62% of customers actually expect personalization rather than just wanting it.

That means choosing to opt out of personalization will result in not meeting the expectations of over half of your customers. This will ultimately reduce loyalty and retention, and then sales and revenue.
How effective is personalization?

Personalization is very effective, with the potential to increase ROI by up to 2,000%. Even if not to that extent, personalization still increases ROI by an average of 500% to 800%. In turn, increased ROI and customer loyalty result in an average 10-15% increase in revenue for companies.

Additionally, 90% of customers find the idea of personalization at least somewhat appealing, meaning there’s little to no downside in its implementation.
What are the 4 R’s of personalization?

The 4 R’s of personalization are Recognize, Remember, Recommend, and Relevant. In more detail, here is what the 4 R’s represent:
- Recognize: Knowing your customers through the data you gather (i.e., their role, location, preferences, and favorite products).
- Remember: Ensuring you have records of your customers so you can recall information when needed (i.e., browsing behavior, actions taken, and implicit interests)
- Recommend: Presenting relevant products and information to each customer that helps them navigate the overwhelming sea of commerce (i.e., content recommendations, product announcements, and cross-sell opportunities).
- Relevant: Only push content that is connected to the data you’ve learned about the customer (i.e., products similar to others they’ve liked or located in their area).

Conclusion

Personalization has become a hugely popularized and essential part of commerce, with 62% of consumers now expecting to have it available to them. Whether shopping in person or online, most consumers now anticipate personalized options.

And with this expectation comes increased customer loyalty and more purchases from customers. In part, this is why companies who invest in personalization see huge ROI, increased revenue, and more.

In the end, it’s vital for businesses, small and large, to invest in personalization. Whether done through targeted emails or sending relevant coupons, the first step for any company is to gather data about customer data.

References

Author

Jack Flynn

Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.

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