Consumers and brands are of two different minds when it comes to personalization. 

While 75% of business leaders say personalization is “table stakes” for digital , only 52% of consumers say their satisfaction improves as brands become more personalized, according to the State Of Personalization, a study by Twilio Segment.

And whereas 85% of brands believe they are providing personalized experiences, only 60% of consumers feel they are getting them. 

That’s too bad, as 60% of those same shoppers are likely to become repeat buyers after a personalized experience — up from 44% in 2017. But 45% will take their business elsewhere if the firm fails to provide it. 

Consumers clearly want it both ways. 

On the one hand, they wish brands knew more about their:

• Style preferences and what suits me — 40% 
  
• Household needs — 24% 
  
• Economic situation — 20% 
  
• Goals and dreams — 14%

And 69% appreciate personalization when it’s based on data they’ve shared directly with the business. 

But their faith in companies is provisional: 37% trust brands to keep their data secure and to use it responsibly, while 37% don’t trust them to do so.  

Yet 48% of shoppers appreciate the benefits of personalization if their data is secure. And 42% expect to receive a relevant discount within hours (or even sooner) of identifying themselves to a brand.

What attracts shoppers to retailers? They want to know the brand:

• Is trustworthy and transparent — 55% 
  
• Is socially and environmentally responsible — 16%
  
• Offers a smooth digital experience — 14% 
  
• Offers a high level of personalization to me — 10%
  
• Is well known and popular among my peer group — 6% 

For their part, brands are facing many serious challenges these days: 

• Reaching new customers — 57%
  
• Getting accurate customer data for personalization — 43%
  
• Balancing personalization and customer data privacy — 41%
  
• Achieving consistent messaging across channels —4 0%
  
• Bringing internal teams together — 29%
  
• Tracking the ROI of personalization efforts — 28%
  
• Other — 1%
  
• None of the above — 5% 

To help deliver that, 80% of brands are using at least some first-party data to personalize the customer experience. Their goals in using it are:

• It is easier to manage because we own it — 46%
  
• It provides better privacy for our customers — 45%
  
• It’s easier to obtain — 42% 
  
• It’s more cost-effective to obtain — 40%
  
• Because it’s the most ethical approach — 37%
  
• Because our customers want us to do this — 36%
  
• That’s where the industry is headed — 27%
  
• Easier to comply with government regulations — 27% 
  
• We are preparing for the phasing out of third-party cookies — 21%

Despite the results shown above, fewer than 25% of businesses have invested successfully in omnichannel personalization. 

Moreover,  21% say technology and data are barriers to omnichannel success, and 21% don’t see the ROI.  

One reason may be that 53% are focused on improving existing channels instead of expanding into new ones. 

Segment surveyed 2,700 consumers who purchased something online in the past six months and 300 managers/decision makers at consumer-facing companies that provide goods or services online. The survey was conducted from April 8 to April 20, 2021.