Jun 22, 2022
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Consumers want more personalisation but worry about privacy - report

Jun 22, 2022

Here’s a dilemma. Customers expect personalisation during every brand interaction — but they don’t trust brands to keep their personal data secure and to use it responsibly.


According to new data from customer engagement platform Twilio’s third annual ‘State of Personalization Report 22’, 62% of consumers expect personalisation, saying that a brand will lose their loyalty if their experience is not personalised. What’s more, 49% will become repeat buyers if personalisation is offered. 

Paradoxically,  just 40% of consumers say they trust brands to use their data responsibly and keep it safe. 

The report shows lack of trust is increasingly affecting consumer buying decisions with 60% of consumers saying trustworthiness and transparency are the most important traits of a brand, up from 55% in 2021.

Of course, delivering personalised experiences requires personal data, and information collected directly from customers with their consent (first-party data) is fine for 63% of consumers “as long as brands are using their own data and not data purchased or rented from third parties”. 

Companies have long “rented” customer relationships from advertisers and social networks but sweeping privacy regulations are forcing companies to shift from renting to owning their customer relationships. 

Half of the companies Twilio surveyed said recent changes to data privacy regulations have made personalisation more difficult.

Many companies are already responding to these changes in consumer preferences, regulations, and technology, with 43% of business leaders embracing first-party data because it provides better privacy for customers. 

Technology remains a hurdle for many companies with the report showing the majority of businesses are still struggling to achieve omnichannel personalisation, despite 60% of respondents reporting increased investment in personalisation in 2022. The most common barriers include lack of technology, unclear ROI, lack of accurate data, and organisational impediments.

“Technologies such as customer data platforms give businesses the tools they need to achieve compliance while managing first-party data for personalisation. Customer data platforms collect first-party data at every customer touchpoint to create a single, unified view of the customer”, the report noted. 

Business leaders are embracing such technologies, with 53% investing in better technology to manage customer data. These companies are equipped to build deeper customer relationships.

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