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Reports show the consumers want personalisation without giving up data

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Reports show the consumers want personalisation without giving up data


It’s a catch 22 at the moment. Consumers want personalisation, but giving up their data is also something risky. It’s all about finding the happy medium.

Leading customer engagement platform, Twilio, has released a report that shows the consumers’ dilemma. How do consumers expect both private data and personalisation? 

Mistrust in brands

The report, released 22 June 2022 indicates that customers want, if not expect, personalised content. However, when it comes to giving up the very thing that would give them this, consumers are hesitant. 

The third annual State of Personalisation report has found that 62 percent of consumers are expecting personalised marketing. That is, newsletters addressed to them, products geared towards them. Events and companies they would like. In fact, consumers also say that if the marketing isn’t personalised, they’re less likely to purchase. 

With 49 percent of purchasers saying they’d be repeat buyers from personalisation, only 40 percent say that they trust brands to use their data safely. 

This gives marketers the predicament of giving up data or giving up personalisation. 

The personalisation vs. privacy paradox

For marketers to deliver consumers personalisation, data is required. Changing consumer attitudes towards sharing data online creates a paradox for businesses.

First-party data, or data collected directly from customers with their consent, is optimal for privacy. According to Twilio, 63 percent of consumers say they are fine with personalisation. However, this is so long as brands aren’t using or renting this data to other brands or businesses.

Consumer privacy as a challenge and opportunity

For a long time, companies have rented customer relationships from advertisers and social networks. It helps businesses to make targeted content. Companies collect behaviour and demographic data and then sell it on as the target audiences. But new regulations have forced rules on this sort of rental system. 

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

How to target consumers wanting personalisation

Technology remains a hurdle for many companies. Tech giants have fleets of data scientists and massive budgets to achieve personalisation at scale. However, Twilio has reported that the majority of businesses struggle to achieve omnichannel personalisation. The most common barriers include lack of technology and lack of accurate data.

It’s about looking for technology such as customer data platforms that give businesses the tools to achieve compliance and manage the expectation of first-party data. Business leaders need to embrace these technologies. And, they are. Fifty-three percent are investing in better technology to manage customer data.

These companies will be equipped to build deeper customer relationships.


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Liv Croagh

Liv Croagh was the Managing Editor of Marketing Mag from September 2021 to September 2023.

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