Observed Signal · Jun 9, 2022 · Other · Source: CMSWire · Impact: 2/5 · Sentiment: Positive
5 Ways Transparent Personalization Can Win Over Customers
This CMSWire feature article outlines five strategies for marketers to practice transparent personalization, balancing personalization with consumer privacy. Citing a 2021 McKinsey statistic, 71% of customers expect personalized interactions and 76% get frustrated when it doesn't happen. Bad personalization can drive customers to unsubscribe or switch brands. Recommendations include keeping customers informed about data collection, focusing on zero-party data, allowing customers to control communication preferences, ensuring personalization is relevant, and working with privacy-compliant partners. Expert commentary comes from Hunter Montgomery of ChurnZero, Sandy James of Zoox Smart Data, and Daniel Englebretson of Phononic. A 2022 Cheetah Digital report found 92% of consumers will trade personal data for loyalty points, while 59% remain uncomfortable sharing location data. The article also suggests establishing a central data hub and regularly checking in with customers.
Editorial providing best practices for transparent personalization; relevant to marketers and data privacy, but not industry-shifting news.
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Key Takeaways & Evidence Grounding
- 71% of customers expect personalized interactions, according to McKinsey data from 2021.
- 76% of customers say they get frustrated when personalization does not happen.
- 92% of consumers will trade personal and preference data for loyalty points, per a 2022 Cheetah Digital report.
- 59% of consumers are not comfortable sharing location data even for better service.
- The article recommends five transparency strategies: keeping customers informed, using zero-party data, enabling preference controls, ensuring relevance, and working with compliant partners.
Connected Companies & Entities
2 Entities mapped“An email from design software Canva was cited as a good example of preference-based personalization....”
“Statistics on customer personalization expectations were sourced from McKinsey....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
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