5 powerful benefits of personalization

Personalization encourages companies to gain a better understanding of their customers. When brands consider who a customer is, what they want, when they're likely to make a purchase, and the channels they shop on, the customer feels seen, heard, and cared for.

New research indicates that customers not only have a positive perception of personalization but that the majority are disappointed when it's not offered — especially younger consumers for whom consumption in every shape and form has mainly been digital.

With brands experiencing a crowding of competition, customers have ample alternatives should the experience you serve fail to address them or their preferences.

Personalization, especially in the ecommerce space, streamlines and speeds up how customers progress through the buyer's journey — from awareness to consideration and decision-making.

Through demographic information, past browsing, and purchase history, companies can place the products and services customers are likely to be interested in within reach, removing the need to spend time searching through the site.

Brands can be proactive with personalized marketing. For example, online gift and greeting card retailer Moonpig keeps track of which holidays customers purchase cards and gifts for, recommending the perfect present or card when that same holiday rolls around the following year.

What do Amazon, Netflix, and Spotify all have in common? In addition to leading the pack in their respective industries, these online marketplaces and streaming platforms are leaders in personalization. They're favorites among shoppers and subscribers because they offer quality, variety, and reliability and take the guesswork out of shopping, watching, and listening.

When personalization is done right, customers can find more of what they love in less time. In customers eager to consume, personalization aids in retention and demotivates individuals from searching for alternative experiences, products, and services offered by competitors.

While personalization might require new tools (think AI-native) and time spent on strategy, setup, testing, and iteration, brands should view these as investments in marketplace relevance that make for more enticing, stickier brand experiences.

When done well, personalization provides better customer experiences that increase conversion rates and entice repeat buyers, driving long-term value.

According to Twillio’s State of Personalization report, 56% of customers say they’re more likely to become repeat buyers after a personalized experience. Moreover, 80% of business leaders said personalized experiences increased consumer spending by an average of 38%.

In a report from Deloitte Digital, nearly 3 in 4 consumers are more likely to purchase from brands that deliver personalized experiences, and they spend 37% more with those brands.

The more personal you make the experience, the greater the impact on customer loyalty. People respond to personalization because it helps them connect with your brand emotionally. When they feel seen and heard, they’re more likely to remain loyal to the company and promote its product to their friends and family.

Contentful is helping brands like Ace & Tate, Personio, and Pet’s Deli reap the benefits of personalization at scale. With our powerful content platform, integrated personalization, and smart features that help marketers and developers work better together, you can supercharge your personalization strategy.

Get started today

Ready to supercharge your personalization strategy?

Chat with our team to learn how Contentful can help you reach your personalization goals faster.