State of Personalisation Report Uncovers Consumer Behaviours
In the race to personalise everything sold online and making that experience memorable, companies have to obtain your personal data first before they can customise. Now this changes consumer attitudes because in the process your data is being shared online and in return, creates a paradox for businesses.
Yet, first-party data, or data collected directly from customs is optimal for privacy. So, the dilemma that companies everywhere face is that while consumers want personalisation, they do not exactly trust brands with their data with their consent. According to a recent report by Twilio, as much as 63% of consumers say they are fine with personalisation - as long as brands are using their own data responsibly and not from data that is purchased or rented from third parties.
The State of Personalisation Report polled almost 3,500 businesses and consumers globally to uncover how attitudes and behaviours with regards to personalisation have changed in the last year. This is its third annual report, which explores the latest trends in personalisation, first-party data, privacy, and consumer loyalty.
Some interesting global findings from the report include:
- Personalisation and ROI go hand in hand: Nearly half (49%) of consumers say they will likely become repeat buyers after a personalised shopping experience with a retail brand.
- Lose customers if tailored experiences are not prioritised: 62% of consumers across the globe expect personalisation, saying that a brand will lose their loyalty if their experience is not personalised.
- Strike a balance between personalisation and privacy: Ironically, only 40% of consumers say they trust brands to use their data responsibly and keep it safe.
Now, closer to home, the survey also found that:
- Only 22% of business leaders in Asia Pacific* admit to providing highly personalised experiences – the lowest of all regions polled, compared to North America: 48%; Europe: 30%; and South America: 44%
- 17% of APJ business leaders say customers spend more money after a personalised experience, compared to 36% South American, 16% European, and 29% North American business leaders.
- 57% of Asia-Pacific business leaders use customer experience/satisfaction tools to gauge personalised shopping experiences, compared to 46% European, 71% South American and 61% North American business leaders..
*Note: APJ countries polled in the survey include Australia, Singapore and Japan.
The State of Personalisation Report 2022 found that 62% of consumers expect personalisation, saying that a brand will lose their loyalty if their experience is not personalised — meanwhile, 49% will become repeat buyers if personalisation is offered. Yet only 40% of consumers say they trust brands to use their data responsibly and keep it safe.
Twilio’s report shows lack of trust is increasingly affecting consumer buying decisions: 60% of consumers say trustworthiness and transparency are the most important traits of a brand, up from 55% in 2021.
Companies struggle to meet consumer and regulatory demands for privacy
Companies have long “rented” customer relationships from advertisers and social networks. These companies collect behaviour and demographic data and then resell it as targetable audiences. But sweeping privacy regulations — at both the government and corporate levels — are forcing companies to shift from renting to owning their customer relationships.
Easier said than done. Half of the companies Twilio surveyed said recent changes to data privacy regulations have made personalisation more difficult. But with Google set to join Firefox and Safari in banning third-party cookies by the end of 2023, the shift to first-party data is no longer optional.
Many companies are already responding to these changes in consumer preferences, regulations, and technology, with 43% of business leaders embracing first-party data because it provides better privacy for customers.
Data and technology hurdles to personalisation at scale
Technology remains a hurdle for many companies. Tech giants have fleets of data scientists and massive budgets to achieve personalisation at scale, but Twilio’s report shows the majority of businesses are still struggling to achieve omnichannel personalisation, despite 6 out of 10 respondents reporting increased investment in personalisation in 2022. The most common barriers include lack of technology, unclear ROI, lack of accurate data, and organisational impediments.
Technologies such as customer data platforms give businesses the tools they need to achieve compliance while managing first-party data for personalisation. Customer data platforms collect first-party data at every customer touchpoint to create a single, unified view of the customer. Business leaders are embracing such technologies, with 53% investing in better technology to manage customer data. These companies are equipped to build deeper customer relationships.
The full report can be downloaded here.
