“There is no shortcut to ensuring good data,” commented Seth Earley, CEO of Earley Information Sciences, a con- sulting firm specializing in information architecture. “It takes planning, careful thought, and consistent data governance for personalization to work as intended. AI-enabled tools are just as dependent on accurate data as are human users, if not more so. As AI usage expands in per- sonalization, rigorous data management processes are essential.”
When it comes to user acceptance, Gartner reported that about half of consumers would unsubscribe as a result of receiving irrelevant personalized communications, and 14% would avoid that brand in the future. Particularly annoying are actions such as making an offer that the recipient is not in fact eligible for, or repeating recommendations for already-purchased products. Finally, receiving a personalized message that is perceived to be invasive or overly personal is another turnoff. Privacy remains a significant concern. According to Twilio Segment, only about half of customers trust brands to keep their data secure and use it responsibly.
Personalization initiatives need to bal- ance privacy with outreach—people want to be understood, but not stalked. Each generation has become more willing to share personal information, and as busi- nesses become more familiar with the enabling technology, it is likely that the trend toward personalization will continue, as the preponderance of evidence shows that it increases sales, loyalty, and customer engagement.