A final trend consumers are adopting toward the companies they interact with is increasing personalization. This means not only knowing customers' names, but also their history and preferences.
According to the Gladly Customer Expectations Report 2022, 66% of consumers prefer brands that know them and give them personalized recommendations.[5] For this reason, streaming services are spending a lot of resources on accurate recommendation systems. Netflix was a particularly early participant in this trend, offering a $1 million prize in 2006 to anyone who could develop a more precise recommendation system than its own.
That strategy obviously worked, as Netflix is now a $100 billion company with 80% of its stream time coming from its recommendation system.[13] Consumers want to know that their needs are being met. Furthermore, 73% of consumers want to be treated like a human being, not a number.[5]
According to the “Next in Personalization 2021” report by McKinsey & Company, 71% of consumers expect companies to offer personalized interactions. And 76% are frustrated when they aren't getting them. Personalization drives performance and better customer outcomes. Companies that grow faster generate 40% more of their revenue from personalization than their slower-growing peers.