41 Percent Of Consumers Have Abandoned A Brand Because Of ‘Poor Personalization’
In the age of on-demand, customized content isn't a 'nice to have' — it's a must have.
Approximately 41 percent of consumers have switched the brands they buy from because of poor personalization, and 50 percent say that they did so because of “poor customer experience” in general — amounting to a total of $756 billion in lost retail and brand sales, according to research from Accenture cited by eMarketer.
Marketers should be well aware that personalized ads, recommendations and experiences matter to consumers, but the research underscores the fact that personalization is a “must have” not a “nice to have” — and customers are willing to actively seek out new brands when this need isn’t being met.
It’s clear that in the age of on-demand — where consumers can order a customized sandwich or a personalized beauty box with a tap of their smartphones — expectations are high. But how can retailers actually deliver this tailored experience, both in person and across devices?
Talk Data To Me
The key, as ever, is data: location, demographic, past purchases, and more. With a combination of data analysis (aided by AI where necessary) and human judgement, brands can make better product recommendations and tailor the shopping experience.
But transparency is key: While a reported 44 percent of US consumers said they are frustrated when companies fail to provide these relevant experiences, 49 percent are still concerned about data privacy — especially when it comes to intelligent assistants like Amazon Alexa that become “smarter” over time. As such, brands fare better when they’re open about how and why they collect data — and when they allow customers to provide the data points voluntarily.
eMarketer’s report states that Stitch Fix, a popular personal shopping subscription service, credits this data philosophy for a large part of its success: The company collects “over 85 meaningful data points about its customers — all provided voluntarily.”
If marketers are able to collect data from customers voluntarily, they’ll likely to be able to minimize fears of privacy violation. Once they’ve done that, the key is to use that data to target individuals — not devices or platforms.
As Eyeview CMO Jeff Fagel told GeoMarketing earlier this year, “you have to think beyond the platform. Marketers must also personalize creative for their audience, the time of day, the user’s location and their current activity. It’s about much more than just the platform the viewer is on, and most brands are missing an opportunity by ending their personalization at that point.”