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Consumers Expect a Higher Level of Personalization as Techenabled Solutions Shifting Purchasing Habits

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According to a new survey from Klaviyo, the marketing automation platform, a large majority (74 percent) of consumers expect brands to provide an even more personalized shopping experience in 2025 and 66 percent expect brands to make them feel valued and understood — but there may be a disconnect with further analysis finding that brands haven’t delivered. Klaviyo’s survey, which polled more than 8,000 global consumers on how they interact with brands and how these interactions affect purchase decisions, aimed to break down five key areas including the consumer journey, brand loyalty, personalization, customer service and brand purpose. The company aimed to provide the research to help brands elevate the customer experience, drive loyalty and build stronger customer relationships. You May Also Like Related Articles Business Features How Retailers Are Combating Tariffs and Inflation With AI-Driven Pricing Strategies Wellness How the SuppCo App Is on a Mission to Streamline and Clean Up the Complicated Supplement Category One Scan at a Time When it comes to the exclusivity that consumers hold over loyalty, the report found that 79 percent of consumers are loyal to five brands at most with 41 percent saying they are loyal to just one or two brands making meeting their expectations critical. Key findings in the report point to personalization reaching higher levels of importance today. And as more brands institute AI technology to increase experience, consumers have grown more accustomed to a more personalized interaction even shifting behaviors — although many believe it has manipulated their behaviors. Klaviyo’s survey results included a shared consumer sentiment (77 percent) of feeling more valued/understood by brands when the customer journey is tailored to them with only 34 percent of respondents reporting that they have had a personalized experience in the last six months. One in five consumers said that they would stop buying from a brand after a single negative experience. The authors of the report pointed to the clear opportunity for brands as currently “they aren’t personalizing (unlikely) or are doing it so poorly it’s not registering with customers.” And with so many customers looking to receive more personalization in the customer journey, they said, “it is a make-or-break moment” to amplify personalization to match shopper expectations or risk losing customers. “The only way for brands to grow and build long-term loyalty is by delivering personalized experiences at every stage of the customer journey,” said Jamie Domenici, chief marketing officer at Klaviyo. “To do this, they need to centralize their data and bridge the gap between marketing and service to ensure a unified approach that connects individualized outreach with exceptional support. By aligning both and leveraging the right technology, brands can create consistent, meaningful interactions that foster trust and drive lasting customer relationships.” Unsurprisingly given the current economic landscape, pricing was also revealed as a key part of the customer journey. Competitive pricing and discounts were the second most cited factor by consumers when asked what matters most when deciding to make a first purchase with a brand (25 percent) — and the most important factor when making return purchases (29 percent). When deciding which brand to purchase from, price comparison was ranked as the top factor (36 percent). The number-one reason that a customer abandons a cart was revealed as “finding a better price elsewhere.” Pricing also remains a key factor for getting new customers through the door. Access to exclusive discounts and/or promotions was the top reason respondents said they would sign up with brands (43 percent). However, once they’re in the door consumers said it takes “consistent product or service quality” to remain loyal (33 percent). Importantly, consumers are willing to give brands “second chances” when a brand responds “correctly” to a negative experience. Ninety-four percent of consumers agreed that they would give brands another shot “if the brand meets them halfway” meaning quick responses and win-back strategies like compensation. In practice, 81 percent of respondents said that they expect a response within 24 hours and 38 percent expect one within four hours. In terms of compensation, half of consumers said that they expect a refund, discount or replacement while 27 percent said that they expect a direct ask for feedback and 25 percent said that they expect to see exceptional follow-up experiences. Other factors that consumers hold in high regard when giving brands loyalty or even making a purchase for the first time include alignment with their own values. Ninety-five percent of consumers said that brand values and practices mean at least as much to them now as they did a year ago and 42 percent say that they matter more — despite rising prices. Consumers ranked the top three values that they care most about as: data protection and/or security, fair labor practices, and commitment to small/local businesses.

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