Netflix, Amazon, Stripe, and Segment are just some of the companies that use personalization today to drive business results. Consumers and B2B customers both already expect personalized marketing. Here are 45 statistics on why personalization is important in marketing.
These stats will help you get started if you're considering making your business more personal. They will also help you champion personalization in your organization. Companies that do ignore personalization in marketing risk becoming obsolete fast in the changing markets. If you're already familiar with the benefits of personalization, check out these B2B website personalization tools to get started today and start incorporating new lead generation strategies that take your business to a new level.
While many of the statistics here are from B2C markets, it's important to keep in mind that the buyer expectations have carried over to B2B markets because a consumer doesn't forget that they work for a company when they go home.
"Personalization plays a critical role across the full customer lifecycle—acquisition, customer engagement, basket size, frequency of purchase, cross-sell, and/or churn prevention, among other things" ─Julien Boudet, McKinsey
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89% of digital businesses are investing in personalization ─Forrester
2/3 of marketers expect investments in personalization to show results in less than a year. ─Gartner
Only 15% of CMOs believe their company is on the right track with personalization ─McKinsey
42% of B2B marketers report their marketing efforts are not fully personalized. ─Folloze
39% of B2B marketers say their personalized marketing strategy is only somewhat advanced, while 15% say their personalization strategy is not at all advanced. ─Folloze
95% of retailers state personalization as a top strategic priority (64% say it's a TOP 3 priority). ─McKinsey
36% of retailers state that personalization is necessary just to keep up with industry changes. ─McKinsey
Personalizing web experiences creates a 19% uplift in sales. ─ Instapage
87% of marketers report a measurable lift from personalization, while 54% of marketers report a lift of more than 10%, and 13% report more than 30%. ─ Evergage
15% of retailers saw 100-300% increase in new customer conversions. 41% of retailers saw 50-100% increase in cross-selling revenue. ─McKinsey
Companies that personalize their content can increase revenue 10% or more in retail. ─McKinsey
Offering helpful messages requires a depth of customer insight that can increase brand intent, purchase and repurchase rates, and cart size up to 20%. ─Gartner
44% of consumers say they are likely to do repeat purchases after a personalized shopping experience. ─Segment
49% of shoppers have bought a product they initially didn't intend to buy after a personalized recommendation. Meanwhile, 40% say they bought something more expensive because of a personalized experience. ─Segment
21% of retailers saw customer traffic double, while 59% saw traffic increase 25-50%. ─McKinsey
52% of consumers and 65% of B2B buyers are likely to switch brands/vendors if a company doesn't personalize their communications to them. ─Salesforce
54% of B2B buyers want personalized recommendations across all interactions with a company. ─Accenture and SAP
"74% of customers feel frustrated when website content is not personalized." ─Instapage
55% of marketers say increased visitor engagement and customer experience are the top benefits of personalization. ─Evergage
98% of marketers agree personalization helps them create a better customer relationship. 74% say it has a strong or extreme impact. ─Evergage
71% of consumers feel frustrated by the lack of personalization when shopping. ─Segment
78% of customers experience mass marketing as frustrating. ─McKinsey
Consumer expectations drive personalization efforts in retail and 46% of retailers see personalization as a way to be more customer-centric. ─McKinsey
74% of millennials are frustrated with brands that send irrelevant and generic emails. ─SmarterHQ
82% of B2B buyers want the same experience as when they're buying for themselves. ─Salesforce
72% of business buyers expect vendors to personalise engagement to their needs. ─Salesforce
For 84% of customers, being treated like a person, rather than number is very important to win their business. ─Salesforce
According to McKinsey, personalization can create 5-8x improvement in return on marketing spend. ─McKinsey
Personalization can make marketing 10-20% more efficient by saving costs. ─McKinsey
"Personalization can reduce acquisition costs by as much as 50%" ─McKinsey
Account-based marketing (ABM) ─ a subcategory of personalized marketing ─ has been reported to have somewhat higher or much higher ROI than any other marketing initiative. ─Alterra Group
Personalization can increase marketing spend efficiency by 30%. ─Adweek
10% of retailers believe personalized marketing can also help them achieve higher marketing budget efficiency. ─McKinsey
Marketing leaders also report that 78% of them struggle to scale personalization, partly due to a lack of key competencies in the organization. ─Gartner
These competencies include understanding consumers' micro-behaviors (data analysis and empathy) and producing versioned content (content creation), and sharing made decisions with other stakeholders (cross-discipline communication).
65% of marketers also "feel overwhelmed by the need to create more content to support personalization". ─Gartner
54% of B2B marketers believe personalization is harder for B2B than B2C. ─Folloze
67% of retailers state gathering, integrating, and synthesizing data needed for personalization as the greatest challenge. ─ McKinsey
41% of retailers state delivering personalized marketing was hindered by finding the right solutions partner. ─McKinsey
Consumer brands risk losing 38% of their customers to poor personalization that feels "creepy", meaning the message is too personal. ─Gartner
More statistics on digital marketing here.