The tipping point of consumer preferences: personalization is now essential

By Vlad Gozman, Serial Entrepreneur and Founder and CEO of involve. me. Follow @vladgozman on Twitter.

Consumers today are bombarded with marketing messages from companies vying for their attention. In this noisy landscape, personalization has become a key differentiator.

Recent research from Epsilon found that 80% of consumers are more likely to do business with a company if it provides them with personalized experiences. And yet, far fewer respondents said they thought companies were currently excelling at personalization.

There is a disconnect between what consumers want and what companies are offering. This gap presents a huge opportunity for companies looking to invest in personalization. Let's explore four main reasons.

Consumers are increasingly demanding personalization.

As noted above, the vast majority of consumers want personalized experiences. This preference will only increase with the age of the younger generations. Millennials and Gen Z are digital natives who grew up expecting tailored content and recommendations. If you don't deliver personalized experiences, you risk losing those valuable customers.

As the Gen Z consumer base grows, businesses need to focus on personalization at scale. This is not an easy task, but it becomes more and more necessary as more and more of these consumers enter the market.

Personalization drives loyalty and customer lifetime value.

From the clothes we wear to the social media platforms we use, brand loyalty is fast becoming a thing of the past. In this environment, personalization can be a powerful differentiator.

When done right, personalization builds customer loyalty and lifetime value. Research shows that companies that excel in personalization generate an additional 10% to 15% increase in revenue from their efforts.

Personalization increases engagement and conversion rates.

It's not enough to offer customization: you also need to execute it well. Sloppy execution can lead to customer disengagement and can also lead to lower conversion rates.

On the other hand, companies that get good personalization see increased engagement and conversion rates. The trick is to use personalization in a way that feels relevant and useful to customers, without appearing intrusive or scary. Make the customer feel like you understand their needs and cater specifically to them.

Personalization can support other business objectives.

Finally, it's important to note that personalization is not an isolated initiative; it's a fundamental habit that can support other business goals. Whether you're looking to increase sales or improve customer retention, personalization can help. By investing in customization, you are making a smart decision that will pay off in many ways.

How to personalize

Developing a personalized customer engagement strategy used to be a Herculean effort. You n...