The State of Personalization Report 2023

By Twilio Segment

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Illustration: The State of Personalization Report 2023

Welcome to the fourth annual State of Personalization report, our yearly deep-dive into the latest trends in personalization, consumer loyalty, privacy, and more.

Through our extensive survey analysis from business leaders and consumers alike, we’ll take you on a journey through the most significant global trends in 2023. From the latest advancements in AI-powered personalization to the rising importance of consumer privacy, we’ll explore the strategies and tactics businesses are using to connect with their customers on a deeper level.

Continue reading for selected highlights from our research, or download the full report above.

Staying ahead of the curve: Investing in personalization despite economic uncertainty

Despite economic uncertainty, it’s encouraging to see that 69% of businesses we surveyed are increasing their investment in personalization.

This suggests that businesses recognize the value of personalization in creating engaging and loyal customer relationships, even in tough times.

69% of business leaders are increasing their investment in personalization despite challenging economic headwinds.

Want to retain your customers? Keep it personal

Looking more closely at the value of personalization, it’s clear why the majority of business leaders we surveyed are increasing their investment in this area.

Our data shows that businesses are well aware of the benefits that personalization can offer, with the majority citing the ability to help retain current customers.

62% of business leaders cite improved customer retention as a benefit of personalization efforts.

The payoff: How investing in personalization delivers real returns

Once again our data shows that consumers want to feel like VIPs when they’re interacting with businesses. Over half of consumers say they are more likely to make a repeat purchase after a personalized experience.

Personalization is the new black in the business world – it’s always in style. By tailoring experiences to their customers’ needs and preferences, businesses can create a bond that’s hard to break.

Over half (56%) of consumers say they will become repeat buyers after a personalized experience, a 7% increase year-over-year.

AI is driving next-level customer experiences

Reaching 100 million daily active users just two months after launch, Chat-GPT ushered in a craze for AI and machine learning (ML) – and it seems businesses have caught on.

Our survey shows that organizations are increasingly adopting AI and machine learning to power their personalization efforts.

More than 9 in 10 companies (92%) are using AI-driven personalization to drive business growth.

Personalization in the age of privacy

It’s no surprise that trust is becoming increasingly important when it comes to personalization efforts. With data breaches and privacy scandals making headlines all too often, consumers are understandably wary of giving away their personal information.

But fear not, business leaders, there’s still hope. By being transparent and respecting data privacy, brands can earn the trust of their customers and deliver personalized experiences that delight and inspire loyalty.

Just half (51%) of consumers trust brands to keep their personal data secure and use it responsibly.

Ready to transform your customer experience with personalization?

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