Now more than ever, customers demand communications that are tailored to their specific interests and needs. In response, brands are leaning heavily on first and third-party data to create personalized communications.

But how far is too far? Are hyper-personalized communications impactful or intrusive? Are they creepy or cool?

What Consumers Like About Personalization

Personalization makes shopping more convenient, efficient, and enjoyable. It also saves consumers time and money by showcasing products and services that are relevant to their needs and interests.

According to Marigold’s 2023 Consumer Trends Index, consumers appreciate personalized marketing communications when they add value to their lives. In fact, 64% of consumers say that they are willing to share their personal information in exchange for personalized recommendations.

What Consumers Don't Like About Personalization

While personalization can be helpful, it can also be intrusive. 53% of consumers say that they feel uncomfortable with the level of personalization they receive. Personalization crosses the line when it makes consumers feel like their privacy is being invaded or that they are being tracked online.

This feeling of invaded privacy is so impactful that 62% of consumers say they are uncomfortable with the idea of their personal information being used for targeted advertising. This includes retargeting ads that follow them around the internet, or ads that are based on their search history.

How Brands Can Strike the Right Balance

So, how can brands use personalization without making consumers feel uncomfortable? The key is to strike the right balance between convenience and privacy.

First, brands should use personalization only if it enhances the customer experience. Simply leveraging data to push products won’t work. Modeling data to better understand the types of communications that consumers want to see is supremely important when developing a personalization strategy.

Second, brands should be transparent about their data collection and use policies. Consumers should have the option to opt-in or opt-out of personalized communications. Brands should also be clear about how they are using personal information and what benefits consumers can expect.

Finally, brands should be mindful of the types of personal information they collect and how it is used. For example, using sensitive information such as health data or financial information for personalized communications can be particularly intrusive.

In the end, striking the right balance when it comes to personalization can make or break a brand’s performance. Those that find that balance between convenience and privacy can create personalized communications that add value to the customer experience and drive results. By being transparent, customer-focused, and mindful of privacy concerns, brands can leverage personalization to build stronger relationships with their customers.