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Personalization perils: Most consumers regularly receive mistargeted information from brands

by | Aug 1, 2022 | Marketing, Public Relations

New research from personalized CX software firm Redpoint Global reveals growing customer frustrations with receiving mistargeted information from brands. Unmet expectations include, among others, receiving inaccurate promotional emails or recommendations unrelated to prior purchases. Currently, 70 percent of consumers reported receiving mistargeted information at least once a month and 24 percent say they receive mistargeted information daily.

To combat the high level of mistargeted information, consumers are willing to provide access to their data in exchange for better customer experiences

Half of the consumers surveyed (52 percent) want customer experiences with less transactional friction and an additional 30 percent want discounts and future promotions in exchange for their data. Yet, despite the willingness to share information, ongoing mistargeting of next best offers or next best actions by many brands antagonizes consumers expecting personalization. In the survey, 51 percent of consumers said it negatively impacts their overall customer experience with a brand when they receive mistargeted communications.

“Today’s consumers have high expectations of all brands they engage with to provide personalized experiences with minimal data risk,” said John Nash, chief marketing and strategy officer for Redpoint Global, in a news release. “Brands that prioritize hyper-personalization with consumers will gain consumer trust and build brand equity. Utilizing the most up-to-date information on consumers to deliver seamless, relevant interactions with as little friction as possible will be a major factor in the future successes of today’s brands.”

When it comes to generational breakdowns, younger consumers are more willing to share personal data in exchange for enhanced personalization and are more likely to demand personalization than older consumers

In the survey, 41 percent of Millennials feel brands should be able to immediately adapt offers and interactions at the moment of new data ingestion. Conversely, just 26 percent of Baby Boomers considered this a priority. Consistent with these differences, just 11 percent of Boomers said that brands know them very well, with more than twice as many of the youngest consumers, Gen Z, (25 percent) saying the same.

In relation to privacy, 27 percent of consumers also say that current regulations do not protect their data effectively, but still feel that it is ultimately a brand’s responsibility to ensure their data is protected

Nearly half of consumers surveyed express a desire for stricter privacy regulations at the national level and better transparency around data leaks. Furthermore, 48 percent of consumers would stop doing business with a brand if it gave away their personal information without permission. Fewer than a quarter of consumers believe that brands are truly transparent about how consumer data is used, and 11 percent of respondents said there is nothing brands can do to improve trust. Many consumers also want to take more control of their data, with 54 percent interested in having the ability to easily delete data they have already provided to brands.

This survey was conducted via Dynata Research in June 2022 and targeted 1,000 U.S.-based consumers over 18 years of age.

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Richard Carufel
Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 12 years, and has interviewed hundreds of journalists and PR industry leaders. Reach him at richardc@bulldogreporter.com; @BulldogReporter

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