Why We Love Them + Brand Examples

According to a 2021 McKinsey report, 76% of consumers get frustrated when they can’t find a personalized experience with a brand.

With personalization becoming increasingly valuable to stand out from the competition, a look at some great examples can serve as inspiration for your own strategy.

Discover brands that are killing it with personalization and take a look at the impact it can have.

Why do we prefer personalized experiences?

Twilio’s State of Personalization 2022 report found that 49% of consumers say they are likely to become repeat shoppers after a personalized shopping experience with a retail brand.

Companies also report that consumers spend more when they have a personalized experience. In fact, 80% of business leaders surveyed in Twilio’s report say consumers spend an average of 34% more with a personalized experience.

Conversely, all it takes is one bad experience to turn a customer away. A 2021 Zendesk CX report found that 50% of consumers will switch to a competitor after a negative brand interaction.

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So the question is, why is this? What is it about this type of experience that attracts consumers and why is it so fragile? A study may have the answer.

According to a study from the University of Texas, we can attribute our preference for personalized experiences to two key factors: the desire for control and information overload. Let’s address the “desire for control” first.

So we know that a personalized experience, by its very nature, is somehow different from the status quo. Don’t just get what everyone else gets with personalization. Instead, get something tailored. And that’s why it makes you feel more in control.

Even if this feeling of control is an illusion, it is still powerful and can have a positive effect on your psyche.

Now, let’s move on to the second factor mentioned in the University of Texas study: information overload. According to the study, personalization can help reduce this perception.

For example, when you know that the content displayed on a website is tailored to you, it provides a more manageable framework for engagement. With customization, you’re not presented with thousands of resources to sort through and consume.

Instead, you’re presented with exactly the information you were looking for. So you never feel overloaded with information.

Now that you know the psychology behind personalized experiences and how effective they can be, let’s dive into some real-world examples.

Personalized marketing experiences

Personalization covers a wide range of strategies leveraged by brands both online and offline. Some brands take an omnichannel approach, while others focus their efforts on specific channels.

To give you an idea of ​​what’s possible, here are some examples of customization:

• Names in email subject lines and body.
• Location-based push notifications.
• Welcome messages on the home page of a website.
• Cart abandonment notifications.
• CTAs based on the purchase cycle.
• Product recommendations based on purchase and/or search history.
• Customer loyalty programs.

According to the same McKinsey & Company report referenced above, the top five personalization actions consumers want are: easier online and in-store navigation, personalized product or service reviews, tailored messages, relevant promotions, and celebrations of personal milestones.

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Let’s see these strategies applied by brands.

1. Sephora

When it comes to personalization, Sephora is a brand that everyone looks up to.

Over the years, the beauty retailer continues to optimize its omnichannel personalization strategy, consistently ranking among the top winners in the Sailthru Retail Personalization Index for the past five years.

At the heart of Sephora’s personalization is its mobile app. One of the first things you notice about the app is its ability to turn customer data (collected through testing and user behavior) into recommendations using predictive analytics.

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The app contains data about in-store purchases, browsing history, purchases and in-store interactions.

Where the brand really shines is in its ability to blend online and in-store to create a seamless, frictionless experience for shoppers.

The app invites users to find products in the store and book face-to-face consultations. Once in the store, customers will be given a login to the app to create a profile that includes the products they used. This way, they can always find the information they need for a future purchase.

In addition, Sephora has a loyalty program where it offers exclusive access to products, events and services based on your level. At each touchpoint, users can track their loyalty points and get personalized recommendations.

2. Netflix

Everyone’s Netflix account looks different when you sign in.

This is because the streaming service has made it a priority to personalize the user experience as they browse the platform.

The first sign of this is the large banner ad that appears when you first land on the app. This is usually a trailer for a newly added show or movie; the difference is that the selection is different for everyone.

For me this could be the new season of Peaky Blinders as I have watched all the previous seasons. For another, it could be something else.

As you scroll through the app, you’ll see two more custom sections: “Why You Watched” and “Chosen for You.”

Using artificial intelligence and machine learning, Netflix’s algorithm is programmed to suggest shows and movies based on a user’s viewing history, including watch time and review.

What you end up with is a lineup with elements of content you’ve enjoyed in the past, making it easy to pick out new stuff. Plus, it keeps you coming back for more.

That’s the beauty of the app – you know everything is prepared just for you based on your personal interests.

3. Amazon

If you currently oversee an e-commerce store, Amazon is a great model for inspiration.

This retailer has created an interface that provides relevant recommendations based on browsing and purchase history.

When you first arrive at the home page, you will have the option to navigate to the following sections:

• Keep shopping
• Pick up where you left off
• Buy it again
• maybe you like it too
• Inspired by your wish list
• Recommended for you

Each of these sections is personalized for the user based on their behavior on the site.

In addition to inferring information about its customers, Amazon will occasionally survey its users.

For example, shortly after I purchased a product for my cat, the following question appeared on my home page: “Do you have a dog or a cat?” They explained that this information would be used to provide more personalized recommendations.

A key point here is to fill in the gaps in your data by reaching out to your users. This will be especially important if you are using AI-based software and need to feed it information to guide its algorithm.

Personalized experiences are the way of the present and the future. The sooner you jump in, the easier it is to keep up with consumer behavior.

Editor’s Note: This post was originally published in November 2014 and has been updated for comprehensiveness.