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Personalization strategy: how to tackle it [The State of Personalization report]

The need for personalization has never been more urgent. In an instant, consumers expected brands to remember who they were, where they came from, and what they liked, regardless of the channel. Personalized, one-to-one marketing might once have seemed like a pipe dream. However, consumers increasingly expect it. 

Can businesses deliver these experiences as consumers’ expectations rise? See what the report from Twilio Segment told about it and read our article till the end!

Personalization = Necessity

To remain competitive, a highly personalized customer experience based on first-party data was viewed as a key to retaining customer loyalty and differentiation.

It used to be nice to offer personalized digital experiences. But today, it’s essential. 

Businesses and consumers agree that personalization is crucial for improving the customer experience: 75% of companies believe it is necessary, while over half of consumers agree.

source: The state of personalization 2021, Twilio Segment report.

Furthermore, 36% of consumers will shop with a brand again if they had a good experience – even if there are cheaper or more convenient options available.

Businesses investing in personalization 

Companies that invest in personalization are likely to generate more revenue than those that do not. For example, after a personalized shopping experience with a retailer, 60% of consumers say they are likely to become repeat buyers. However, only 44% of consumers answered the same question when Segment asked them in 2017.

source: The state of personalization 2021, Twilio Segment report.

Yet, despite recent improvements, most businesses have not yet realized the full potential of personalization, and a gap remains between consumer expectations and reality. Even though 85% of companies claim to provide personalized experiences to consumers, only 60% of consumers agree.

source: The state of personalization 2021, Twilio Segment report.

Personalization and privacy

In recent years, consumers have become increasingly aware of how companies handle their personal data, and they expect the highest level of privacy and security from brands they interact with.

A brand’s digital transformation cannot be successful without digital trust. Relationships with customers are at stake. 

And trustworthiness and transparency are the two most important traits a brand should possess, according to 55% of consumers.

source: The state of personalization 2021, Twilio Segment report.

However, consumers are divided about whether brands are acting in their best interests: 37% trust businesses to keep their personal data secure and use it responsibly, while another 37% do not trust online retailers with their data.

source: The state of personalization 2021, Twilio Segment report.

Personalizing customer experiences is impossible without access to, let alone trust in, your underlying data. The problem is getting high-quality data into the hands of all teams across the organization.

Consumers increasingly want personalized experiences, and they are willing to provide their data to get them. For example, 69 percent of consumers say they’re okay with personalization so long as they’ve provided the data directly to the business.

source: The state of personalization 2021, Twilio Segment report.

Most consumers, however, wish brands knew more about them. 

The preference is extreme among younger age groups, with 52% of Gen Z consumers wishing brands knew more about their style preferences and what they liked than 42% of Millennials.

source: The state of personalization 2021, Twilio Segment report.

The omnichannel imperative

A growing number of consumers (69% to be exact) expect a personal and consistent customer experience across different channels, both physical and digital. But, only a few businesses are delivering on that promise. For example, just 24% of enterprises report investing successfully in omnichannel personalization.

Moreover, two main barriers stand in the way of companies delivering successful omnichannel experiences – technology and business. Approximately 21% say it’s due to a technology or data issue, while another 21% say it’s due to unclear cost-effectiveness.

source: The state of personalization 2021, Twilio Segment report.

As businesses are also reducing fragmentation between channels that they have already invested in and adding more ones. This is also something consumers agree with. For example, 61% prefer fewer, better channels when shopping with a brand.


As you can see, the world is changing dramatically. Firstly, consumer expectations are outpacing experiences. There is no doubt about it. What’s more, personalization and privacy can work together well. On the contrary, omnichannel is still being overlooked, but we can see some changes in this field. Finally, customer loyalty is on the line, and now, if brands fail to offer a personalized experience, many consumers say they’re likely to take their business elsewhere. 

So, while a lot is evolving, it is wise to take a closer look at your business and how you deal with personalization. Finally, it is all for your business development

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