The Cocktail Party Effect: How personalization gets customers hooked on your brand

Everyone’s chasing a personalized experience — but do you know why customers crave it?

Jen Clinehens

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Photo by Fabio Spinelli on Unsplash

“Customers want experiences that recognize their unique selves.

At their core, they are seeking solutions to their personal circumstances and life challenges.”

— Julio Hernandez, KPMG

It seems like every company is chasing personalization. In fact, almost 70% of brands surveyed in a recent Everstring report called it a “top priority.” It could be easy to write personalization off as a shiny object, if not for the financial returns.

In their 2019 Personalization Development Study, Monetate outlined the ROI of personalized marketing:

  • Personalized marketing drives growth: 93% of companies with an “advanced personalization strategy” saw revenue growth. Only 45.4% of companies without a personalization strategy saw equivalent growth.
  • The higher the investment, the better the returns: Companies with ROI of 2x or more said personalization made up at least 20% of their marketing budget.
  • Personalization drives long-term customer value: Brands that had the highest personalization ROI (3x or more)…

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Jen Clinehens

ChoiceHackingIdeas.com // Brands win when they know what makes buyers tick (behavioral science, psychology, AI)