Digital trends for 2024 according to the Adobe report: What are customer expectations?

Personalization plays a crucial role in customer experiences around the world. Research conducted by Adobe shows that more and more people expect personalized service, but many companies still need help to implement it effectively.

According to recent research, only a tiny percentage of consumers, just 26%, consider their digital experiences with brands to be excellent. Interestingly, about half of the customers agree that the more a brand knows about them, the better it can serve them. However, there is also frustration with the failure of some brands to take customer preferences into account because they have large amounts of data about them. It is worth remembering this when developing an e-commerce channel.

So, why do organizations still find it challenging to personalize their services?

One of the main reasons is consumers’ caution about the lack of privacy protection. As many as 67% of consumers believe they would be more open to giving consent to the use of data if brands were more transparent about how they use and secure it. As a result, consumers prefer brands to focus on personalizing face-to-face interactions on their websites, apps and social media before expanding to interactions such as automated chat or virtual rehearsals.

What does personalization mean in 2024?

The best digital experiences require an integrated, end-to-end customer experience across all channels, delivered seamlessly and consistently. 80% of consumers expect consistent experiences across various online channels, and as many as 70% of them value personalized product recommendations.

According to 91% of consumers, responsible data use is also significant. Consumers expect their data to be treated responsibly and securely. Brands must be transparent and provide clear rules on data use, especially in AI.

What are consumers’ main preferences when interacting with brands?

Research shows that most consumers prefer to communicate on their schedule. Nearly two-thirds preferred receiving emails about the best deals rather than personalized text messages (40%). Similarly, consumers preferred website and app recommendations (62%) over tailored emails and text messages (38%).

Only through accurate consumer segmentation can companies effectively come closer to meeting their expectations. For example, among the three key personalization priorities, consumers indicate the need to receive messages tailored to their individual needs that are timely and relevant. At the same time, only 20% of consumers attach importance to messages addressed to them using their name. They need to recognize their information and preferences when contacting them for support or customer service (23%) and identify them when logging in from different devices (25%).

Generational differences also play a role in consumer preferences. Most consumers under 45 (almost 60%) prefer online chat over phone calls or filling out forms. In comparison, the majority of consumers over the age of 65 (over 51%) prefer websites over applications. From the Connected Shoppers Report, we know three bad experiences are enough for a customer to abandon a brand. Hence, brands must consider these differences and tailor their personalization strategies to the needs of various age groups.

How can brands implement personalization effectively?

Data accuracy plays a crucial role in effective personalization. Companies can only deliver on their promises if they collect data to make intelligent product recommendations or direct customers to the most efficient service path.

Take chatbots, for example. Their operation is based on intelligent data and is mainly used to provide service functions or help customers conduct the purchasing process themselves. However, they often fail to meet expectations. About half of consumers (49%) rate their experience with chatbots as “very poor”, “insufficient” or “average”.

When asked about potential improvements brands could make to provide better digital experiences, consumers often cited the need to improve customer service (52%) or make self-service easier (44%). A smooth data flow between different departments and systems is crucial.

Generative AI is the next step to effective development. The key is to have consistent data and appropriate resources. Organizations must invest in the right tools, such as customer data platforms, to use data effectively and deliver personalized service.

What are the future challenges of personalization?

Most organizations must still link generative artificial intelligence to a better customer experience. Only about a quarter of senior executives have done this, but encouragingly, 45% are already working on it. Given that only a quarter have defined key performance indicators, there is a risk that without more strategic oversight, generative AI implementations may fall short of expectations.

Companies that have already adopted or are in the process of implementing generative AI were asked about the areas in which their organizations plan to use the technology in digital marketing and experience management. By far, the most common answers were automation of content creation and personalization (41%). In last place were the automation of text and email campaigns (28%) and adapting content to various platforms and devices (27%).

Ultimately, an organization’s goals for generative AI must be set to solve internal business goals and customer problems effectively. While fully achieving these goals may require a significant investment of time and resources, there is the potential for faster success, which can increase your company’s efficiency and lay the foundation for more advanced investments. You can read more about e-commerce trends on our blog.

Personalization is a critical element of customer experience but requires the right approach and investment. Organizations that effectively implement personalization can gain a competitive advantage and customer loyalty in the digital age.