Personalization has become an integrated part of our everyday digital life. In fact, 89% of digital businesses are investing in personalization, particularly in delivering personalized content. These companies include big names like Coca-Cola, Netflix, Sephora, Fabletics, USAA, and Wells Fargo.
Likewise, personalization has been a top trend in the e-commerce industry 📈. More and more e-commerce stores are shifting towards delivering personalized customer experiences to stay ahead of the game.
To help you better understand this latest trend, we've conducted extensive research and compiled a list of 46 personalization statistics you should know to successfully grow your e-commerce business in 2021💡.
Sounds interesting? Keep reading!
Consumers want and expect personalization
It is no secret that consumers in today’s era are much more in control of their shopping experience, and they want it to be personalized! Moreover, consumers have come to expect companies of all sizes to provide an advanced level of personalization.
- As per Accenture’s recent study, 91% of consumers say they are more likely to shop with brands that provide offers and recommendations that are relevant to them.
- 66% of consumers expect brands to understand their individual needs.
- If building customer loyalty is your goal, do you know that 70% of consumers believe that how well a company understands their individual needs impacts their loyalty?
- 80% of frequent shoppers only shop with brands that personalize the experience.
- 72% of consumers say that they only engage with personalized content.
- According to Salesforce, consumers are more than twice as likely to view personalized offers as important than unimportant … and 52% expect offers to always be personalized!
And a lot of customers are willing to share their data for a personalized experience:
- As Accenture’s recent study shows, 83% of consumers are willing to share their data to create a more personalized experience.
- 57% of consumers are willing to exchange their data for personalized offers and deals, as per Salesforce.
- 90% of consumers are willing to share personal behavioral data with companies for a cheaper and easier experience.
- According to Harvard Business Review, consumers are 40% more likely to view items that are recommended based on the information they’ve shared with the brand.
What do marketers say about personalization?
- 88% of marketers say their biggest goal with personalization is to improve the customer experience.
And it works well:
- 98% of marketers say personalization advances customer relationships. In particular, 55% of marketers say the top benefit of personalization is increased visitor engagement and improved customer experience.
- Marketers see an average increase of 56% in sales when they use personalized experiences.
- Marketers report that personalization efforts can boost revenues by up to 15%.
- 86% of marketers have seen a measurable lift in business results from their personalization campaigns.
Top benefits of personalization
Investing in personalization can help create a better customer experience and build better customer relationships, which will pay off with serious rewards for companies 💰.
- 63% of marketers in the US saw increased conversion rates as the main benefit of personalization, whereas 31% cited increased e-commerce revenues as the main benefit of this tactic.
- According to McKinsey & Company, personalization increases marketing spend efficiency by as much as 30%. This increased efficiency is achieved predominantly through personalized product recommendations and triggered marketing communications.
- To better understand customer’s changing expectations, Salesforce Research surveyed 15,600 consumers and business buyers globally. In this research, 84% of consumers say being treated like a person, not a number, is very important to winning their business.
- In addition, this study also shows that 70% of consumers are more likely to buy from company’s that understand how they use their products and services.
👉 This stat points out that if you have a wealth of data available about the way your customers interact with your products and services – make sure you’re using it! Because technically speaking, personalization is grounded in collecting and analyzing data of your customers' shopping and buying behaviors. If you need any help, Clerk, as an intelligent CDP(customer data platform), allows you to manage and analyze these valuable customer behavioral data with ease.
- Personalized homepage promotions influenced 85% of consumers to buy.
- Personalized shopping cart recommendations influenced 92% of shoppers online to make a purchase.
- 44% of customers say they will likely become repeat buyers after a personalized shopping experience with a particular company …and repeat business means more revenue!
- When customers receive transparent ads based on their activity on a site, the product's revenue grows by 38%, as per Harvard Business Review.
- Econsultancy’s recent research shows 80% of companies have seen an uplift since implementing personalization.
- Companies using advanced personalization report a $20 return for every $1 spent. Yes, that’s a 2000% ROI!
- Personalization can reduce customer acquisition costs by up to 50%.
Bad personalization hurts your business
In a world where an increasing number of companies focus on improving their personalization efforts, companies that fail to deliver a tailored experience run the risk of getting left behind.
- If you fail to deliver personalization, you’ll most likely annoy your customers. As 71% of customers feel frustrated when a shopping experience is impersonal.
- 63% of consumers will stop buying from brands that use poor personalization tactics.
- 74% of consumers are frustrated by website content that isn’t personalized.
- Worse still, 66% of consumers say encountering content that isn’t personalized would stop them from making a purchase.
- Lack of personalized content generates 83% lower response rates in an average marketing campaign.
- Your poor personalization efforts may result in losing customers to your competitors. As 47% of consumers check Amazon if the brand they’re shopping with doesn’t provide product suggestions that are relevant.
Businesses are prioritizing and investing in personalization
Knowing all the benefits of investing in personalization and the risks of failing to deliver it, marketers and businesses around the world are focusing on improving their personalization tactics.
- According to Statista, 78% of global e-commerce companies planned on investing more into personalization in 2020.
- As for digital businesses, 89% of them are investing in personalization.
- In a recent study by Salesforce, 92% of marketers reported using personalization techniques in their marketing.
- Moreover, 51% of marketers say personalization is their number-one priority 🔝.
👀 Although e-commerce personalization is becoming increasingly popular, it might not (yet) be for your webshop. Check out our recent article to learn more about the 8 reasons to/not to personalize your webshop.
- Personalization matters not only to individual shoppers but also to business buyers. Studies found that 73% of B2B buyers want personalized experiences, similar to the B2C-like customer experience.
However, only a few B2B e-commerce businesses are implementing personalization strategies.
- Merely 22% of B2B customers report their most recent online experience was personalized to them. In Scandinavia (i.e., Denmark, Sweden, and Norway), less than 30% of B2B e-commerce companies tailored their customers' digital experience.
Personalization works wonders for email marketing
Did you know that nowadays, your customers also expect email communications from you to be personalized?
- 55% of consumers claim receiving targeted promotions and discounts would create a more enjoyable email experience.
- By comparison, 70% of millennials are frustrated with brands sending irrelevant emails.
As a matter of fact, email personalization performs super well:
- Compared to emails with non-personalized subject lines, consumers open emails with personalized subject lines at a 50% higher rate.
- According to HubSpot, personalized CTAs convert 202% better than non-personalized CTAs. So if you're planning to include a call-to-action in your marketing email, make sure it's personalized, and you might just see more conversions.
- Personalized emails can improve CTR (click-through rates) by an average of 14% and conversion rates by 10%.
- Marketers report a 760% increase in email revenue from personalized and segmented campaigns, as per Campaign Monitor.
- Experian Marketing Services study found out that personalized emails generate 6x higher transaction rates and revenue.
- However, 70% of brands still don’t use personalized email messages.
Implementing personalization strategies in your e-commerce business doesn’t have to be difficult 😉: See how Ugleunger delivers personalized experiences with minimal effort.
If you want to read more on the latest e-commerce statistics and trends, check out:
- 28 Mind-Blowing E-commerce Statistics in 2021
- M-commerce Is The Next Big Thing: Data & Trends!
- Email Marketing Stats and Trends in 2021
- E-commerce Payment Trends To Watch Out For In 2021
- Top 15 Mind-blowing Omnichannel Statistics You Should Know in 2021 (Infographic)
- Voice Search: Top Trends to Watch Out for 2021
- The E-commerce Fashion Industry: Top Data & Trends for 2021
After reading all these thrilling and insightful statistics, are you excited to integrate personalization tactics into your e-commerce store, improving customer experience and business performance? 🤩
We’re ready to help! Being the world's #1 rated e-commerce personalization platform, Clerk.io helps 2,500+ e-commerce stores worldwide improve their CX and grow sales.
Get started by talking to one of our specialists today.