24 data-based reasons to personalize your marketing
When Larry Drebes, CEO of Janrain, set out to study the online consumer experience earlier this summer, he knew that relevant content would be at the forefront of consumers' minds. We've seen for years that marketing emails that are personalized for the recipient perform better than their usual counterparts.
But what he may not have anticipated was how much consumers expect personalization at every stage of their buying process. In truth, nearly three-quarters of respondents in the national survey expressed frustration with content that doesn't recognize and align with their interests.
"These results suggest that consumers have reached the tipping point when it comes to being shown content that is not relevant to them," Drebes explained. "Consumers have been pretty consistent and clear in their feedback, the way to not alienate them is to give them what they want - personalized, relevant content that uses their data in a responsible and transparent way.
To put it simply, consumers don't just like personalized marketing experiences. They actually expect them. Here are 24 statistics that prove why you should be embracing personalized marketing in 2020.
Advantages and challenges of personalized marketing
- Message personalization is the #1 tactic used by email marketers to increase engagement rates. (HubSpot)
- More than 20 % of marketers say personalization can improve email engagement. (HubSpot)
- 99% of marketers say personalization helps drive customer relationships, with 78% claiming it has a "strong" or "extremely strong" impact. (Evergage)
- 80% of consumers are more likely to make a purchase 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, which 56% of marketers noted. (Evergage)
- The biggest challenge for ABM teams is personalizing their strategy. (HubSpot)
- 40 % of marketers say their biggest challenge with personalization is linking to data-related technologies, while 34 % struggle with poor data quality. (Experian)
- 78% of brands say they struggle with "data debt" or don't have enough fast data about their customers to not launch 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 ever seen is when a brand apologizes for bad shopping experiences. (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 for brands to automatically adapt content to the current context. If brands do not adapt accordingly, 42% of consumers "get annoyed" that content is not personalized. (Adobe)
- 82% of consumers engage primarily with marketing content on smartphones, while 63% engage primarily with content on computers. (Adobe)
On which platforms do most people consume personalized marketing content?
- 83% of buyers 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 brand experience. (SmarterHQ)
- Three out of four consumers say a company has never communicated with them online in a way that felt too personal or invasive. (Accenture)
- Of the one-quarter of consumers who received a personal or invasive brand experience, 64 percent) say it was because the brand had information about them that they didn't knowingly or directly share. (Accenture)
- In an Accenture survey, consumers said the "creepiest" personalized marketing tactics were texting or sending a notification when someone walks by a brand's store and running social media ads for items consumers browse on a brand's website. (Accenture)
Anonymous vs. permission-based personalization
In marketing, there are differing opinions about the appropriate time in the customer lifecycle to use personalization.
While some argue that personalization should only occur after the end user has knowingly provided information to the company, other companies use anonymous data, such as location, attached to a viewer's IP address to target viewers by location. When developing your personalization strategy, you need to decide what the right approach is for your business and your customers.
- Regardless of what technology enables, it's important that your strategy starts and ends with the customer's needs and preferences. For many, this will mean waiting until the customer has engaged with you before personalizing content.
- 42% of marketers surveyed say they personalize with anonymous data. (eConsultancy/Adobe)
- 57% agree to provide personal information on a website as long as it is for their benefit and used in a responsible manner.
- 77% would trust companies more if they explained how they use personal data to improve their online experience.
- 62% of adults under 34 are willing to share their location for more relevant content.
Navigating marketing personalization
We have entered an exciting time for marketers and buyers alike. 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 in 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 helps shape the early stages of that conversation. Hopefully, the coming year will bring more results and good case studies of companies using personalization to create a more "human" marketing experience.