July 25, 2022
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4
minute read

Importance of Personalization and the Psychology Behind It

Personalized customer experiences give us a feeling of connection and loyalty like no other method. When we feel that a company cares about us, we care for their services and products.

Personalization holds great importance to consumers. According to McKinsey & Company, companies that excel at personalization generate 40% more revenue from similar activities than average players do. Additionally 71% of consumers expect companies to deliver personalized interactions. And 76% get frustrated when this doesn’t happen. 

Econsultancy’s 2017 “Conversion Rate Optimization” report found that 93% of companies report having more success in converting prospects into customers when they personalize their marketing.

There are multiple psychological bases that explain the importance of personalization. In this article we will dive into a few of the theories that show why personalizing your customer experience and marketing efforts is so important.

Selective Attention

Every person that is somewhat interested in psychology has heard of the term selective attention. There are many theories on how we designate our attention; on what parameters and how we do it. But they all stem from the same basis, that attention is selective and we don’t pay attention to everything that’s going on in our world. 

One theory that tries to shed light on selective attention is proposed by Deutsch and Deutsch. It’s called the pertinence model. It suggests that all information is initially processed for meaning and the selection for our attention takes place after being analyzed in the memory system. Information that is most relevant to us is likely to be selected for our attention. It’s the phenomenon that allows us to hear our name being mentioned across the room in a crowded party. We pay attention to what is relevant to us. 

Sense Of Control

According to a study done by The University of Texas our preference for personalized experiences could be due to two key factors, one of them being the desire for control. Getting personalized material rather than generic ones, gives us the feeling of being in the driver's seat of the content and products we consume. Even though we aren’t really in control of the material itself, having it personalized for us gives us a sense of control.

It is proven by multiple studies that feeling a sense of control over any situation makes us feel more pleasantly about it and personalization seems to provide this sense of control to us.

Information Overload

Even just the perception of information overload seems to cause our brains to shut down. There have been multiple studies done on the psychological effects of perception of information overload as much as information overload itself. The common implication being that perception of information overload stresses us a lot, decreasing our functionality.

According to the research done by The University of Texas the second key factor for why we prefer personalized experience is that personalization reduces our perception of information overload. It provides us a frame through which we can process information and the best part is that in our perception the frame is made up of our preferences.

Consumer’s Need For Uniqueness

Consumer's need for uniqueness is defined as a personality trait driving individuals to pursue uniqueness by consuming in a way that reflects their effort to develop a distinctive self- and social-image. This theory in itself could be used to establish the basis of importance of personalization, as it is such a foundational part of our psychology.

Personalization provides us the feeling of differentiation from the rest of the consumers. The feeling of being treated as an individual rather than as part of a community of customers feeds our need for uniqueness.

Personalization With BHuman.ai

Having established the importance of personalization, BHuman.ai is the ultimate platform for your personalization efforts. 

Our platform allows you to create personalized videos at scale by spending the time and effort it takes to create just one. With BHuman.ai you can address each and every one of your customers by name to explain your products and services, thank them for their purchase, ask for feedback, provide customer support, offer promotions, and wish them a happy birthday… The use cases are only limited by your imagination! 

Sign up for our platform today to utilize personalization, stop missing out on the secret recipe for connection and loyalty!

To learn more about the other ways you can utilize BHuman.ai for your business visit our site at BHuman.ai. You can also contact us at info@bhuman.ai and we will be happy to inspire you in all the ways you can use BHuman.ai to improve your personalization efforts.