Trend 2

Loyal customers expect personalization

Personalization is the industry standard — so why do customers feel brands still don’t get them?

Personalization isn’t a nice-to-have. It’s the blueprint. Leading brands are doubling down, using contextual data and AI to craft tailored experiences that boost engagement, drive conversions, and build lasting loyalty.

And yet, a clear disconnect persists. While businesses rate their personalization efforts at 4.1 out of 5, believing they’re delivering exceptional experiences, consumers aren’t as convinced. Only 16% of customers describe these experiences as excellent, with 44% calling them good, and 31% labeling them average. This discrepancy between perception and reality reveals a crucial misalignment — and a big opportunity for brands to better align with customer expectations.

One big miss? Reaching customers on their preferred channels. Even the most tailored message falls flat if delivered through the wrong medium. Some customers want the immediacy of chat, others prefer the personal touch of a call, and many value the convenience of SMS. Without engaging on the right channel at the right moment, personalization can feel generic instead of meaningful. 

Channel choice matters — while most consumers prefer email (50%) or messaging apps (40%) when in-person isn’t an option, chatbots (15%) and video (10%) are the least favored. To truly connect, brands must be just as strategic about where they communicate as what they say.

Woman in yellow sweater studying at a library table with a laptop and books.

87% of businesses consider personalization a top priority (up from 76% last year).

26% of customers would walk away from a brand that fails to personalize their experience.

Personalization boosts ROI — but are businesses keeping up?

Consumers reward brands that get personalization right, but there’s a disparity in just how much. Seventy-five percent of businesses say personalization boosts customer spending, with a 32% average increase per purchase. Meanwhile, 54% of consumers say they spend more when engagement is tailored, with a 37% average increase — unchanged since 2024.

While businesses see a direct link between personalization and higher spending, customer behavior varies across generations.

65% of Gen Z and 62% of millennials are more likely to increase spending when brands personalize, compared to 45% of Gen X and just 35% of boomers.

Regional differences matter too — while 42% of U.S. and 44% of EMEA* consumers say personalization influences their spending, its impact is even greater elsewhere. In APAC, 60% are willing to spend more when brands tailor engagement, and in LATAM, that number jumps to 65%. The message is clear: ignoring personalization isn’t just a missed opportunity — it’s lost revenue.

Global impact of personalization on spending by generation

of consumers make repeat purchases when engagement aligns with their preferences

But the impact of personalization goes beyond immediate sales. It builds long-term relationships. When engagement aligns with their preferences, 45% of customers make repeat purchases and 43% recommend brands to family and friends. Personalization turns one-time buyers into loyal advocates, driving revenue and lasting brand affinity.

Personalization isn’t a luxury — it’s a must-have. With 64% of customers saying personalized engagement is critical to their buying decisions, the message is clear. Investing in personalization doesn’t just enhance the customer experience, it drives conversions, increases customer lifetime value, and strengthens brand loyalty.

*EMEA (Europe, Middle East, Africa) includes respondents from France, Germany, Italy, Spain, and the United Kingdom.

Real-time personalization is the key to converting more customers

Imagine this: A customer in Chicago is browsing winter coats on her phone during a lunch break — just after buying a pair of gloves — as the season’s first snow begins to fall. This rich, real-time context offers a prime opportunity for timely, personalized engagement.

Missing that moment means losing the purchase. To capitalize on moments like these, brands are turning to real-time personalization to meet customers with the right message at exactly the right time. 

 

happy senior patient with friendly female nurse

Instantly tailoring interactions based on customer behavior, preferences, or context leads to more relevant and engaging experiences. Today, 90% of companies offer real-time personalization, which now drives, on average, 44% of all customer engagement.

The impact is clear: organizations that engage customers in real time find their personalization efforts more than twice as effective as those who don’t. Consumers agree — 88% say they’re more likely to make a purchase when brands personalize in real time, with 35% being significantly more likely to buy. Delivering the right experience at the right moment directly boosts conversions.

The real competitive edge, however, lies in combining real-time data with context. This powerful pairing reveals not just what a customer is doing, but why — unlocking hyper-relevant experiences that feel truly personal.

Precisely timed offers don’t just drive immediate sales — they build lasting relationships. Today’s consumers expect brands to engage them in the moment, not hours or days later. Companies that fall short aren’t just missing revenue — they’re losing customers to the competition.

Actions consumers took when brands didn't personalize in real time

4 ways to win with personalization

Personalization isn’t a one-time effort; it’s a real-time, ever-evolving strategy that requires constant attention and refinement.

When done well, it doesn’t just improve the customer experience, it drives higher conversions, deeper engagement, and stronger loyalty. Nail it, and you won’t just meet expectations — you’ll exceed them, setting your brand apart in a crowded market and keeping customers coming back for more.

Here's how to make it happen: 

  • Make personalization the foundation

    Treat personalization as a core strategy, not an afterthought. Tailored experiences drive engagement, boost conversions, and build long-term loyalty.

  • Engage customers in real time

    Meet customers at the moment of intent. Timely, relevant interactions increase conversion rates and prevent lost sales.

  • Adapt to evolving preferences

    Different generations and demographics have unique expectations. Understand these nuances and adjust your approach to deepen engagement.

  • Continuously refine your strategy

    Personalization isn’t static. Regularly analyze customer behavior, test new tactics, and optimize to stay ahead of shifting expectations.

Explore the data

Percent of businesses offering personalized engagement 

How businesses rate their personalized engagement

Customer spending when a business personalizes an experience

How consumers gauge the importance of brand personalization

Brand spotlight

Improving patient engagement and health outcomes with Commure’s omnichannel communications

Commure’s patient engagement solutions, powered by Twilio, help providers deliver more personalized care while lowering costs. By improving follow-through, reducing readmissions, and streamlining virtual care, organizations can close costly gaps, optimize resources, and drive better outcomes.

70% reduction

 in no-show rates for preventive care screenings

56% reduction

in readmission rates for patients on cardiology monitoring program

94% patient satisfaction

of telehealth prep instructions and communications

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