Top 3 Personalization Trends To Watch in 2023

The demand for personalization shows no signs of slowing down, especially as we approach a new year.

But personalization isn’t just growing — it’s evolving. Marketers can expect to see noticeable differences in 2023. Think about new privacy laws, technologies and other shifts to the digital marketing landscape. These will alter the way brands and consumers alike think about personalization in the new year.

What will a personalized customer experience look like in 2023? What innovations are brands bringing to the table? To stay ahead of the curve, we’ve compiled a list of trends in personalized marketing your brand should start paying attention to now.

1. Focusing on First-Party Data

New data privacy laws are restricting the use of third-party cookies. Google, for instance, is set to end the use of third-party cookies by late 2024. Apple’s newest privacy update lets users block IDFAs.

Marketers are already beginning to adapt by leveraging first-party customer data — and this type of data collection will become even more popular in the coming year.

First-party data is now key for brands to create more personalized, digital experiences for their customers. This can look like product preferences, shopping history and social media interaction to email addresses and device IDs, which are unique identifiers for each device connected to an internet connection.

It’s a welcome change for consumers, too. First-party data allows consumers to receive a personalized experience, without sacrificing their privacy. According to Twilio, 63% of consumers are fine with personalization — so long as brands are using their own data.

So how are brands implementing this new strategy? One solution is Interactive Videos.

Encourage prospects to share valuable data, even before you’ve spoken to them, with a video they can customize. Let viewers input their own data to get a custom quote, generate a personalized product and more in real time, further boosting conversion rates and other key metrics.

2. Innovating With AI

The world of artificial intelligence and machine learning is opening up tons of new opportunities for personalization along the customer journey. Brands like Amazon, Netflix and TikTok are leading the way with personalized recommendations that show customers exactly what they want to see — creating a user experience that stands out from the rest.

Automation is one key part of AI-driven personalization. This can look like an explainer video sent to your customers before questions even arise, a timely reminder before an upcoming deadline and more.

Ebook

Learn about the video marketing trends gaining popularity

Facial recognition technology is also gaining traction. In this case, facial recognition technology can analyze a customer’s face and match it against a database of known faces to determine demographic information such as age and gender, or even physical attributes such as eye color and facial hair density. This information can then be used to create more personalized experiences for customers across touchpoints.

It’s transforming the user experience, especially in the retail sector. The retail and ecommerce sector is responsible for 21% of the revenue the facial recognition market generated in 2021.
This type of technology can monitor foot traffic, measure average shopping times and even determine customer satisfaction.

3. Adding a Personal Touch to Loyalty Programs

According to McKinsey & Company, 75% of consumers tried a new shopping behavior in 2020 — the height of the pandemic. Fast forward two years, and brands across industries are still struggling to boost customer loyalty. Churn in the banking space is on the rise. Lapsed players in the gaming industry continue to pose a problem.

Loyalty programs are an obvious solution to this issue, but there’s still room for improvement. A staggering 65% of consumers engage with less than half of their loyalty programs.

So how can brands optimize their loyalty programs? By adding personal touches. Make it easy for members to take advantage of their rewards with a personalized explanation of how to access and use their program. Or remind customers of the value you bring with a year-in-review video, just as Navy Federal Credit Union did below.

Every video was relevant and insightful, recapping the total points the viewer earned over the year and special perks available with their points balance. The upshot? The marketing campaign reminded members of the value of their program and how to optimize it in the future.

Personalization Trends in the New Year

As these trends are adopted by more companies and startups, it’s important to understand how you can use them in your own personalization strategy. Plan ahead to navigate new privacy laws. Focus on your loyalty programs.

And don’t forget to add visuals. Our latest research shows younger generations are driving the demand for videos that offer a level of advanced personalization — think interactive, contextual and innovative. Ready to revamp your marketing strategy for the new year? Schedule a 15-minute call to speak to one of our video experts.

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