Definition: Personalization

What is personalization?

Personalization is the practice of tailoring products, services, or marketing messages to individual customers based on their preferences, behaviors, and demographic characteristics. It can come in the form of personalized recommendations, targeted advertising, and customized product offerings.

Personalization is also the cornerstone of an omnichannel marketing strategy that enables brands to deliver consistent, relevant, and seamless experiences to their audiences at all touchpoints.

Why is personalization important?

In a crowded marketplace where customers are constantly bombarded with an overwhelming amount of information, choices, and advertisements, personalization emerges as a powerful tool to cut through the noise and establish meaningful connections with their target audience.

Customers crave a shopping experience with brands that can anticipate their desires and cater to their specific requirements, as shown in research by New Epsilon, where 80% of consumers indicated they are more likely to do business with a company if it offers personalized experiences. By tailoring experiences, products, and services to meet the unique preferences, needs, and interests of their target audience, brands have a higher chance of winning over customers than their competitors who don't.

Here are a few statistics that highlight the growing demand for personalization among shoppers:

1. 71% of consumers expect companies to deliver personalized interactions, and 76% get frustrated when this doesn’t happen. (Source: McKinsey)
2. 56% of consumers expect offers to always be personalized. (Source: Shopify)
3. 45% of consumers say they’re likely to take their business elsewhere if brands fail to offer a personalized experience. (Source: Segment)
4. 80% of consumers who classify themselves as frequent shoppers say they only shop with brands that personalize their experience. (Source: SmarterHQ)