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Power Forward #2: The Personalisation Paradox

Consumers value their privacy, but they also expect companies to provide personalised interactions. With the predicted recession in 2023, marketers will be under increasing pressure to deliver more with less. Our second Power Forward blog post outlines ways marketers can solve the personalisation paradox and turn obstacles into opportunities.

45% of consumers are uncomfortable sharing data for personalisation (1)
71% of consumers expect personalised interactions (2)
76% of consumers get frustrated when personalisation doesn’t happen (2)

Consumers value their privacy, but they also expect companies to provide personalised interactions that promote relevant products and services, offer thoughtful and convenient features, and make their experience seamless and friction-free. The personalisation paradox challenge businesses as common metrics such as email open rates, remarketing, and ad optimisation are increasingly difficult to measure and achieve.

To fully embrace the future of digital marketing, companies will need to consider their;

  • First-party data strategy
  • Business priorities and MarTech capabilities
  • What value will be added to customers in exchange for their data
  • How to understand and utilise the gained data
  • How to improve and optimise continuously

How should businesses approach the personalisation paradox? Here we outline our thoughts on what marketers will need to action in 2023 to be successful.

A customer-centric approach to first-party data

Customers are savvy about managing their personal data, and businesses not only need to earn their permission during lead generation but also in the ongoing use for personalisation and marketing. A survey of 7200 people conducted by Google and Ipsos showed that there are three fundamentals marketers need to ensure their marketing is both privacy-safe and effective:

Make it meaningful
People will voluntarily share their data with companies demonstrating a clear value exchange.

Make it memorable
People have a limited understanding of how online privacy works, affecting how they feel about advertising. But when they remember their data-sharing choices, they are more likely to
have more positive responses.

Make it manageable
When people feel they lack control over their personal data, they can become sceptical of digital marketing. Marketers should provide the tools, and information customers need to manage their privacy.

As competition for first-party data heats up, further innovation will be needed to create meaningful and effective lead magnets. Whilst discount coupons, gated content, giveaways, and freemiums are still among the most common value offered; marketers should consider complimenting these with alternative value propositions such as entertainment (e.g. gamification) to get cut through and drive results.

Increase marketing performance through predictive personalisation

In a Twilio 2022 survey, 80% of business leaders say that consumers spend an average of 34% more with a personalised experience.
The business case for personalisation is clear, but in 2023 consumers will be expecting more than just emails with their names on them.

By using first-party data, promotions and offers can be more nuanced to the customer’s preferences. For example, traditional promotion personalisation uses demographic information such as age and gender, but through Customer Data Platforms and Data Lakes, marketers can better understand purchase intent and offer products that are more likely to convert. In addition, with predictive analytics, MarTech software enables marketers to estimate chances of success based on aggregate data of customers with similar demographics and preferences.

Through data matching, digital ads can be hyper-targeted to audiences that have expressed interest in your product or existing customer base. This is helpful in many ways, from specific propositions for retention to offers and reminders to customers with high intent, leading to a higher conversion rate.

Customer Data Platform vs. Data Lakes

Omnichannel marketing capabilities and personalisation.

Segmentation based on purchase intent, AI predictive capabilities.

  Full customisation to support different functions.

Automatic multi-source digital data gathering

Data analytics and visualisation

Defined mechanisms for data collection, categorising and storage is needed prior to use.

It’s time to get cozy with your customers

Personalisation helps bring brands closer to their customers by emulating a one-to-one relationship that couldn’t have been achieved through mass marketing. By segmenting customers and looking at engagement analytics, marketers can provide relevant content, make helpful recommendations, and control communication frequency and timing to better suit the lifestyle of individuals. Furthermore, by integrating with CRMs, sales and customer support staff can offer proactive and nuanced support.

Our final two cents:

With the predicted recession in 2023, marketers will be under increasing pressure to deliver more with less. Depending on a business’s current MarTech software and data strategy, some upfront investment may be needed to prepare for the cookieless future. However, such investments will generate dividends for years to come and not only increase short-term performance boost but form long-term competitive advantage.


  1. Rodenhausen, Derek, Lauren Wiener, Kristi Rogers, and Mary Katerman. “Consumers Want Privacy. Marketers Can Deliver.” BCG Global, January 12, 2022.
  2. Keating, Geoffrey. “The State of Personalization 2022.” The State of Personalization 2022 | Twilio Segment Blog, June 2022.
  3. Troost, Dunya van, and Katherine Armstrong. “Lessons From 7,000 People About Ads and Privacy.” Think With Google, 1 Sept. 2021,