Dive Brief:
- Consumers value personalization in their digital journeys, but close to half think most brands and retailers are doing a poor job, according to a survey of over 25,000 global consumers released last week by marketing and communications firm VML.
- About half of consumers say that most personalized recommendations feel random and irrelevant, while nearly two-thirds say that personalized emails usually feel generic and automated.
- When personalization works, it works well; almost two-thirds of respondents say that personalized recommendations have helped them discover products.
Dive Insight:
Digital experiences are at their best when they are actively helping customers achieve their goals.
It’s not enough to create personalized moments for the sake of “doing personalization,” Jessica Liu, principal analyst at Forrester, told CX Dive in an email. Instead, they need to create personalized interactions that are relevant and valuable for customers.
Value can take form as an economic benefit like saving money, a functional benefit like reducing friction, an experiential benefit that makes them feel good about the interaction, or a symbolic benefit that gives them a sense of belonging or community, Liu said.
One area where online shopping already shines is helping customers find information. VML’s survey found that a majority of consumers say online is better than offline for reviews, price comparisons, and wide product variety.
Still, 60% of global shoppers say retailers and brands need to get better at giving them products, services and experiences they want online, according to VML. This is a 5 percentage point improvement from VML’s 2024 survey, which could be a sign that companies are acting on consumer demands.
Leaders that want to continue improving their personalized experiences need to ask their customers what they are looking for when they interact with the company, according to Liu.
“Where would a personalized interaction support their customer journey?” Liu said. “Where is it unhelpful? What kinds of interactions do they need? What kinds do they not like? That customer research should inform any personalization initiatives.”
