Nearly 8 out of 10 marketers and businesses spend on personalization actively! Rightly so, as 76% of the consumers prefer to purchase from a brand that personalizes user experiences.
Take your example. Don’t you like it when Brands send you personalized emails and give offers that are exclusive to you?
Personalization helps retain customers and drive sales; let me take you through the current state of personalization through numbers.
Get ready to discover insightful facts that can serve as a guiding light for your own personalization strategy!
Personalization Statistics 2024 (Top Statistics)
- 9 out of 10 marketers have witnessed increased ROI by implementing personalization strategies.
- 76% of the consumers said they would prefer to purchase from a brand that personalizes user experiences.
- As we enter 2024, 83% of consumers are willing to share their data for a more personalized experience.
- 81% of the consumers are willing to pay more for customized clothing and footwear.
- On average, there is a 10% to 15% increase in revenue due to personalization.
- 92% of businesses use AI-driven personalization tactics.
- Only 35% of the companies deliver omnichannel personalization experiences to customers.
- 74% of eCommerce websites have personalized their websites.
Current State of Personalization
- Over 85% of businesses said they deliver a personalized experience to their consumers as of 2024.
However, only 60% of the consumers say they get personalized experiences from the brands.
- The global personalization software market reached $943 million in 2022.
This was an increase of 23% compared to the previous year. In 2021, the market was valued at $746 million. The market is further projected to reach $2.7 billion by 2027.
Source: 360i Research.
- The recommendation engine market size is forecasted to reach $12 billion by 2025.
The recommendation engine helps businesses analyze market data to provide highly personalized recommendations. This market was valued at $1 billion back in 2018.
- 62% of the consumers reported losing loyalty to a brand if they didn’t provide a personalized experience.
- 65% of consumers prefer companies that provide easy and quick online transactions.
- Only 32% of businesses say that most of their content is personalized.
- 66% of the customers reported that they expect the brands to understand their needs and wants.
- 52% of the customers reported that brand satisfaction increases due to personalization.
- 62% of the consumers reported feeling they had lost control over their private information.
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- 36% of the consumers reported that they would prefer the brand and keep shopping for their products if they provided a personalized shopping experience.
- 40% of the customers reported that they wished the brands knew more about their preferred styles and preferences.
- 72% of consumers reported that personalization is the top priority when dealing with brands and their products.
- 90% of marketers reported that personalization contributes to profitability.
- A personalized call to action button leads to 202% better conversions.
Source: Hubspot, Deloitte, Statista.
Business Personalization Statistics
- Companies that provide a personalized experience to customers can generate 40% more revenue.
According to the McKinsey report, personalization is one of the crucial factors that supports the business and helps in its growth.
The report further states that US companies could easily generate $1 trillion if they put more effort into personalization.
Source: McKinsey.
- 75% of business leaders believe personalization is a critical reason for success.
Personalization affects your brand image. A business with personalization reports a consumer satisfaction rate over a business that does not use personalization.
Source: Twilio Segment
- 43% of the executives believed that personalization is the top reason to invest in the hybrid experience.
Hybrid experiences enhance consumer experiences and play a major role in boosting revenue.
- $1 billion in funding was raised by the personalization beauty startups in 2021.
Here is a list of a few startups that have raised a significant amount in funding in recent years.
- Function of Beauty: $345 million
- Proven Skincare: $130 million
- Atolla: $40 million
- ZitSticka!: $25 million
The industry continues to attract significant funding as more consumers demand personalized products.
- Around 90% of online businesses invest in personalization actively.
Many small businesses are budding online, especially after the pandemic. Their USP is customization and personalization.
Brands like Function of Beauty is a US-based company that offers personalized hair care products. It asks its customers to take a quiz to assess their hair type, concerns, and goals. Finally, the brand creates a custom shampoo and conditioner formula for them.
As we said earlier, this startup generated $345 million in funding in recent times!
- 74% of eCommerce businesses provide a personalized experience on their website to attract customers.
Personalization helps ecommerce companies create tailored experiences for their visitors. But it does not just stop at creating personalized website experiences. The companies also invest in email personalization, ad personalization, etc.
Sources: Hubspot, Deloitte.
B2B personalization statistics
- 68% of B2B companies use behavioral and transactional data to drive personalization across their website in some capacity.
72% of the B2B companies collect behavioral and transactional data to personalize the consumer experience.
Here are further details about the data collected by the B2B companies to personalize the experience for their consumers:
| Type of data collected by the B2B companies | Share Of Consumers |
|---|---|
| We collect behavioral data and transactional data | 72% |
| Use collected data for personalization | 68% |
| Unify data collected from multiple systems to boost personalization | 67% |
| Analyze and gain actionable data from collected insights | 61% |
| Have leveraged backend systems to drive deeper into personalization. | 58% |
| Use data collected to drive personalization on other systems | 57% |
Source: Adobe.
- The most proven personalization tactic for B2B companies is personalizing site search results.
The second and the third best personalization tactics, according to B2B marketers, are personalized payment and shipping options and personalized product recommendations.
Here are further details about the best tactics for personalization in B2B.
| best tactics for personalization in B2B | Percentage of consumers |
|---|---|
| Personalized Site search results | 58% |
| personalized payment or shipping options | 56% |
| Personalized product recommendations | 48% |
| Targeting site content or promotions to specific consumer segments | 48% |
| Personalized marketing through ad campaigns, emails, SMS, mobile push notifications, etc. | 48% |
- 63% of the B2B commerce companies are investing in improving their user experience.
At the same time, it was found that 40% of the B2B companies said that personalization is a huge challenge for them.
Personalized Marketing Statistics
- 90% of the leading marketers believe that personalization is a crucial contributor to business profitability.
Personalization helps in boosting the sales of the businesses, which eventually leads to an increase in the company’s turnover.
Source: Google.
- 79% of retail businesses invest in personalization tools.
- 88% of marketers want to improve the customer experience with the help of personalization.
- 62% of marketers believe that content is the most used format for providing a personalized experience.
Besides, 60% of marketers claim their digital content is extensively personalized.
- The top two personalization uses in marketing are product recommendation and predictive customer service.
- 89% of the business has invested in personalization.
Personalization ROI Statistics
- 88% of the marketers in the US saw that the personalization efforts led to the growth of their brand.
- Personalization can potentially boost the company’s ROI by 2000%.
Companies with advanced marketing personalization witnessed returns of $20 per $1 spent in the process.
Even if the company does not have advanced tools, it can witness an average increase of 500% to 800% after using personalization.
- 79% of the businesses that outperformed their revenue goals said they invested in personalization.
Investing in personalization tools increases the revenue by 5% to 15% on average.
- 88% of marketers have observed a positive ROI on the use of personalization during their campaigns.
Sources: Hubspot, Statista, McKinsey.
Consumer Personalization Statistics
- 76% of the consumers are more likely to purchase from the brands that personalize.
McKinsey’s personalization report further adds that 78% of consumers are more likely to recommend a brand that personalizes and helps in repeat purchases.
- 66% of consumers expect the brands to understand their needs and provide them with personal experience.
The individual needs addressed by the company impact the loyalty of 70% of the consumers.
- 71% of customers feel frustrated due to impersonal experience.
At the same time, Impersonalization content drives away 42% of the customers.
Poor brand personalization leads to 63% of consumer loss.
- Around 90% of the customers in the United States find the personalization experience appealing.
Personalization improves customer relationships, according to 98% of e-commerce businesses. If you lack personalization, you’re at a loss.
E-commerce businesses all over the globe lost $756 billion in 2021 due to insufficient personalization.
- 72% of customers tend to engage with personalized messages.
On the other hand, 41% of the customers find it creepy to receive personalized texts from brands they have walked by.
- 41% of customers consider sending personalized apology emails on bad customer experiences the coolest personalized engagement tactic.
- 84% of the customers are likelier to buy from brands that treat them like people and individuals.
- 90% of the customers are ready to share the data to receive exclusive discounts for the products they are interested in.
Sources: Salesforce. Google, Hubspot, Statista, McKinsey.
Email Personalization Statistics
- According to 96% of the brands, they must work on improving their email marketing strategy and performance.
- According to 70% of millennials, irrelevant emails from brands are frustrating.
- Personalization of emails based on demographics is used by 20% of retail, e-commerce, and FMCG companies.
- According to 50% of marketers, email marketing is the most effective strategy for personalization.
Email personalization helps in boosting the sales of the brand. One of the most effective techniques to increase sales rate is to send personalized coupons, discounts, or recommendations to your consumers through emails.
- There is a 26% increase in open rates due to the personalized subject lines in the email.
55% of consumers believe that targeted promotional offers will help to improve their email experience.
- Click-through rates are improved due to personalization according to 75% of marketers,
Personalized emails could drive six times more transactions.
- 52% of the customers may ignore the brand’s email if it is not personalized.
- Personalized CTA increases conversion rates by 202% compared to non-personalized CTA.
Source: Salesforce, Google, Statista, McKinsey.
Advertising Personalization
- 40.5% of consumers prefer personalized ads that align with their interests.
Seeing irrelevant ads in today’s era, where all your data is tracked, is surely a disappointment. Hence, in exchange for their data and searches, nearly half of consumers prefer personalized ads.
- Retargeted ads generate 10x better CTR than display ads.
- 35% of customers think it is creepy to see ads on social media related to the products that they have searched for on social media.
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- Revenue can increase by 38% due to the transparency in targeted advertising.
- Personalized ad acceptance has improved by 19% over the past couple of years.
96% of advertising professionals use personalization in the music, media, and movies sectors.
Sources: Salesforce, Google.
Website Personalization Statistics
- 74% of customers are irritated by websites that are not personalized according to their interests.
Meanwhile, 83% of the poor content personalization leads to lower rates of response rates.
- 85% of consumers are prompted to purchase due to the customized homepages on the websites.
At the same time, 19% of the uplift in sales is observed due to personalized web experiences.
- 87% of the professionals report that customers expect personalized content.
Sources: Hubspot, Segment, Statista.
Sage Reads Insightful Website Stats.
E-commerce Personalization
- 92% of the customers are influenced to purchase a product due to the customized recommendations in the shopping cart.
56% of them may revisit a website with personalized product recommendations.
- 44% of the customers with good personalized experiences are more likely to buy again from the brands.
While 47% of customers tend to switch to Amazon if they don’t get personalized recommendations and experience from the brand they are searching for.
- 31% of the customers wish for a more personalized experience with eCommerce websites.
- 91% of the consumers choose to shop from the brands that offer relevant offers.
Sources: Salesforce, Gartner, Segment.
Benefits of Personalization:
- 30% of the marketing spend efficiency is increased due to personalization.
According to 98% of marketers, personalization helps to advance and improve the customer relationship with the brand.
Besides, 55% of marketers claim that the top benefit of personalization is better visitor engagement.
Future Of Personalization
- More than 66% of American companies plan to invest more in personalization.
- 61% of the companies prefer first-party data for the personalization strategy.
- 58.1% of marketers will need more information regarding the consumers if they decide to personalize the experiences.
More than 83% of the customers will be ready to share their data in exchange for receiving a personalized experience.
Sources: Hubspot, Statista, McKinsey, Gartner.
Challenges In Personalization
- 58% of the consumers see the recommendations of the products that they don’t want.
- 28% of the customers don’t like it when the brands use information they haven’t shared.
- Salesforce’s data reveal that 39% of marketers believe the lack of data stands in the way of adopting personalization.
Sources: Statista, Hubspot, Salesforces.
User of AI in personalization
- 92% of the companies use AI-driven personalization to drive growth.
Nearly 60% of business leaders consider AI adoption an effective strategy for acquiring new consumers.
- 47% of the companies believe that AI-driven personalization promotes accuracy.
At the same time, 44% of the companies said it improved real-time speed, while 44% said it boosted customer retention and repeat purchases.
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