Gartner Survey Reveals Personalization Can Triple the Likelihood of Customer Regret at Key Journey Points
Experts Explore How Active Personalization Can Deliver Significantly Greater Business Impact than Passive Methods in Overcoming Journey Pitfalls
Personalized marketing, while valuable for some, generates negative experiences for 53% of customers, who were 3.2x more likely to regret a purchase and 44% less likely to purchase again in the future, according to a survey by Gartner, Inc.
A Gartner survey of 1,464 B2B buyers and consumers across North America, the U.K., Australia and New Zealand in November and December 2024 found that customers who experienced personalization in a recent purchase journey were 1.8x more likely to pay a premium but were simultaneously 2x more likely to feel overwhelmed by the volume of information they received. Moreover, they were 2.8x more likely to feel time pressure to move forward.
The paradox of personalization arises when customers switch tasks in their buying journey, such as transitioning from searching to selecting a product. This shift can be challenging for most consumers and B2B buyers. During these moments, personalized offers and product recommendations may fall short, as they appear irrelevant to buyers who are grappling with challenges more complex than the offer itself.
Gartner experts presented the findings today during the Gartner Marketing Symposium/Xpo, which is taking place in Denver through Wednesday.
"While personalization has proven to be commercially valuable for some customers, it's crucial to recognize that it doesn't resonate with most," said Audrey Brosnan, Senior Director Analyst in the Gartner Marketing Practice. "More than half of customers feel overwhelmed or rushed by traditional personalization tactics at least once in a purchase journey, when cognitive, emotional and social challenges are difficult to resolve. Personalized offers at these moments can harm customers, highlighting the need for marketers to adopt more nuanced and adaptive strategies that cater to diverse customer needs, like escaping the pitfalls of task switching."
"CMOs face an urgent strategic imperative to redesign personalization for the coming era of two-way, AI-enabled, conversational experiences," said Brosnan. "Passive personalization tactics alone no longer suffice; they can inadvertently intensify the negative emotions that customers experience when trapped in decision-making pitfalls. CMOs must pivot toward active, course-changing personalization that reveals customers' hidden needs, validates their decisions and pulls them from pitfall to purchase."
Active Personalization Boosts Customer Confidence and ROI by 2.3x
According to the research, course-changing personalization significantly outperforms traditional "next best action" recommendations for customers in pitfalls. Active personalization empowers individuals to reflect, build confidence, and take decisive actions aligned with their authentic goals. Customers engaged via active personalization are 2.3x more likely to confidently complete critical purchase decisions, generating substantial improvement in customer satisfaction and marketing ROI.
By allowing customers to take control of their journey, organizations can create more meaningful interactions that challenge perspectives and build confidence. This approach is particularly effective in addressing the complex emotions customers experience in journey pitfalls, such as feelings of being rushed into, overwhelmed by, or dubious of passive personalization.
"Active personalization is a powerful new strategy for transforming customer engagement into strategic value," said Brosnan. "By engaging customers directly, marketing leaders can use personalized experiences to not only improve satisfaction but also drive substantial improvements in ROI and future purchase potential. Even better, active personalization reduces customers' apprehension over the creepiness of passive personalization. They understand why brands need the requested data, and they value the utility that active personalization supplies in exchange."
Course-Changing Personalization: A New Growth Strategy for CMOs
CMOs looking to optimize their marketing budgets and enhance the impact of personalization should focus on this strategic shift. It is recommended to take immediate practical steps:
- Actively Counter Journey Pitfalls: Pinpoint and target active personalization strategies at crucial moments where customers transition between tasks and frequently encounter obstacles, as passive tactics can be more detrimental than beneficial in these situations.
- Catalyze Emotional Change: Employ interactive experiences like quizzes, gamified assessments, and guided digital interactions that both reveal unique customer attributes and motivate customers to clarify their goals and confidently advance through complex decisions.
- Embrace Customer Co-Creation: Shift from passive inference to active customer involvement, encouraging customers to directly share personal preferences and context that co-create personalized paths to purchase and loyalty.
"CMOs who leverage active personalization strategies at key customer journey transition points will achieve deeper customer engagement, enhanced brand loyalty, and superior commercial outcomes," emphasizes Brosnan. "This approach allows marketing leaders to embed a growth loop in customer engagement. Active personalization acts as a flywheel, motivating customers in the moment and revealing unique insights (also called zero-party data) that sustains and accelerates the flywheel with each successive engagement."
Gartner clients can read more in the report: "Revitalize Your Personalization Strategy for Future Growth."
About Gartner for Marketers
Gartner for Marketers provides the objective, expert advice, and proven tools that CMOs and other marketing leaders need to seize the right opportunities with clarity and confidence, and to stay ahead of the trends that matter. With in-depth research and analysis, Gartner for Marketers helps you focus on the opportunities with the greatest potential to deliver results. More information on Gartner for Marketers is available online at www.gartner.com/marketing. Follow news and updates from the Gartner Marketing practice on X and LinkedIn using #GartnerMKTG. Members of the media can find additional information and insights in the Gartner Marketing Newsroom.
About the Gartner Marketing Symposium/Xpo
The Gartner Marketing Symposium/Xpo is taking place June 2-4 in Denver, providing marketing leaders with actionable advice about the trends, tools and emerging technologies they need to deliver business results and exceed expectations. Gartner analysts address the biggest opportunities, challenges and priorities marketers face today, including marketing strategy development, marketing analytics and CX strategy. Follow news and updates coming out of the conference on the Gartner Newsroom and on X and LinkedIn using #GartnerMKTG.
About Gartner
Gartner, Inc. (NYSE:IT) delivers actionable, objective insight that drives smarter decisions and stronger performance on an organization's mission-critical priorities. To learn more, visit gartner.com.
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Elizabeth Bishop
Gartner
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Juliette Dixon
Gartner
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