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?

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)…