And the story doesn’t end there: 76 percent get frustrated when this doesn’t happen. McKinsey research shows that 71 percent of consumers expect companies to deliver personalized interactions. Sometimes it’s just a little unsettling other times, it can put us off the product altogether.Įven so, the modern customer does expect a personalized experience-even if they take it for granted. You probably already know the uncanny feeling of being served a too-relevant ad.
Getting it wrong can have lasting consequences for brands. And the COVID-19 pandemic has only made personalization more urgent for brands: three-quarters of customers switched to a new store, product, or buying method during the pandemic, proving that store and product loyalty is increasingly a thing of the past.īut it’s a tricky needle to thread. McKinsey research also shows that personalized experiences drive up both customer loyalty and a company’s gross sales. Companies with faster growth rates derive 40 percent more of their revenue from personalization than their slower-growing counterparts. Personalization has also been shown to improve performance and provide better customer outcomes. Personalization marketing has real advantages for companies: it can reduce customer acquisition costs by as much as 50 percent, lift revenues by 5 to 15 percent, and increase marketing ROI by 10 to 30 percent. Personalization marketing represents an opportunity for companies to benefit from those warm, fuzzy feelings. When asked to define personalization, consumers associated it with positive experiences that made them feel special. All good things, right? Right, according to consumers in a recent McKinsey survey. Personal greeting, personal touch, personal best.
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