Consumers are increasingly choosing brands that make them feel understood as individuals. Brands that excel at personalization are soaring past their revenue goals because their customers buy more, more often, and remain loyal over time.
Compared to peer brands with low personalization maturity, brands that excel at personalization are ...
48
%
more likely to have exceeded their revenue goals
71
%
more likely to report improved customer loyalty
A new Deloitte Digital report reveals that brands have ramped up their focus and spending on personalization efforts since we published our 2022 personalization report. Our latest research reveals that brands incorporating personalization as a core experience strategy has risen 50% since 2022, and that brands expect to increase their annual personalization budgets by 29% this year compared to the previous year.
The importance of personalization is widely acknowledged, yet most brands are still not executing it well. The value proposition is clear, but many leaders are still facing a connection gap between their customer strategy and end-user experience. Customers want to control how they receive personalized content, and brands need to upgrade their technology, channel strategy, and more, to meet evolving demands.
Download the full report to gain all of our latest insights on the state of personalization.
Personalization as a value exchange
Despite brands increasingly adopting personalization, our research highlights a disconnect between the value that brands believe they deliver to customers through personalization, and the value that customers perceive.
Surveyed consumers recognized just 43% of their experiences as personalized, whereas brands said that they personalize a much higher percentage of customer experiences—61% on average. This reveals a gap between brand intent and consumer perception. In other words, many brands are still not delivering personalization in the ways that matter most to consumers.
When integrated correctly, personalization is a value exchange in which brands provide highly relevant experiences that meet the customer’s needs in return for the customer's loyalty. Personalization leaders—today’s most successful brands—know that driving value for their customers will ultimately drive value for their brand as well.
Read the full report to explore all of the research findings we uncovered.