The Value of Getting Personalization Right—or Wrong

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Title
The Value of Getting Personalization Right—or Wrong
Author
McKinsey & Company
Publishing Date
01.11.2023
Importance
4.3 of 5
Why you should care

McKinsey's definitive research on personalization ROI: companies excelling at personalization generate 40% more revenue than average players. Personalization typically drives 10-15% revenue lift, with top performers seeing up to 25%. Across US industries, moving to top-quartile personalization would unlock $1+ trillion in value.

Efficiency gains are equally impressive: personalization can reduce customer acquisition costs by 50%, lift revenues 5-15%, and increase marketing ROI 10-30%. Consumer expectations are high—71% expect personalized interactions, 76% get frustrated without them, and 78% say personalization makes them more likely to repurchase.

Favorite Quote

Companies that excel at personalization generate 40% more revenue from those activities than average players. Only 15% of CMOs believe their company is on the right track with personalization.