CM.com Research on Personalization: Are Retailers Getting It Right?

Consumers' Inboxes Filled With Irrelevant Messages

With major economies across the world continuing to feel the bite of inflation and retailers looking to do all they can to keep consumers on their side, a major new global study has revealed that brands are continuing to unnecessarily frustrate customers with irrelevant messages and poor personalization efforts. That's a real shame because there are personalization solutions possible in marketing & customer service that are relevant and therefore work!

50% Of Shoppers’ Inboxes Bombarded

The new findings reveal that half (50%) of consumers from across the United States are still seeing an excessive number of messages flooding their inboxes as companies attempt to provide a personalized customer experience. As a result, over a third (33%) of consumers believe that companies do not meet their expectations, and the same amount feel they are not understood.

The study, undertaken by CM.com, a global leader in cloud software for conversational commerce, highlights that consumers are frustrated with the lacking personalization approach taken by retailers, with nearly a third citing transparency and trust issues when it comes to how brands use their data. Similarly, almost one in three (28%) highlight that brands fail to communicate with them on their preferred channels, eroding trust and loyalty.

Still, despite current shortfalls when it comes to how brands are communicating with their customers, nearly two-thirds of consumers still believe personalization efforts are significant in establishing a rapport with a brand.

David White, Director of North America at CM.com, comments: "What is important is to realize that there is an emotional and status connection between brands and consumers. Brands that continue to market to the masses will eventually lose that loyalty and repeat business to brands that become hyper-focused with personalization efforts. Implementing a Customer Data Platform as part of a personalization strategy will allow marketers to retarget their customers based on captured prior purchasing behaviors. You have something compelling once coupled with AI and other creative ways, such as social messaging channels on a mobile device. We are seeing that evolution unfold in today's competitive climate."

Data Is Cheap, Insights Are Gold

Clearly, our study shows consumers are not convinced that the quid pro quo of data sharing for an enhanced experience is a worthwhile trade, and they are voicing those frustrations loud and clear. This doesn’t mean that personalization is a failure, but more that the current approaches being taken by some brands aren’t aligned with consumer expectations. The lesson that must be learned by brands is that data is cheap, but insights are gold. There are countless opportunities for brands to demonstrate the positive impact that good personalization can have on the overall service, but this should stem from insights-driven tools. Chatbots, empowered by integrations with artificial intelligence, can improve the efficiency of the experience for the end user, which in turn can help to drive loyalty. Such tools can also be used to support human customer service agents, ensuring information a brand has about a customer is accurate, up to date and, a tailored service can be provided. Only from here can the information each customer shares with a brand be used to curate each customer journey and foster a more personal and rewarding relationship.”

Methodology

This research was conducted by CM.com in cooperation with the independent research agency CANDID. The online survey was carried out in May 2023, where 9964 respondents answered questions about personalization. They were surveyed about expectations and their experiences with companies in retail and eCommerce. All respondents were aged 18 years or older.

To represent different regions of the world, we surveyed 9964 respondents, approximately 1000 in each of the nine countries, including the United States of America, France, The United Kingdom, Belgium, The Netherlands, China, India, The United Arab Emirates, and South Africa.