The subtle line between desired personalization and pure intrusion
Personalization builds loyalty when it makes customers feel recognized, not spied on. Brands must balance tailored experiences with privacy, using relevant data and clear communication to avoid crossing into intrusion
Yes, I know this topic may seem a bit overdone these days, since all (or almost all) companies recognize the importance of personalization and have been making efforts in this direction. But that’s exactly why I’m revisiting it—because a strategic misstep here can seriously damage the brand-customer relationship. There’s a fine line between desired personalization and pure intrusion. Does your company know how to draw it?
Let’s start at the beginning: what’s the purpose of personalization? The goal is for mass-produced products and services, as we have today, to meet individual demands. This is possible not only by solving the “consumer’s problem”—the rational side—but by fostering a customized emotional relationship between brand and customer, creating a sense of “one to one,” of “they really know me”.
A McKinsey & Company survey found that 71% of consumers expect companies to offer personalized interactions, and 76% are frustrated when this doesn’t happen. According to the research, people associate personalization with experiences that make them feel special. The article also points out that personalization can reduce customer acquisition costs by up to 50%, increase revenues by 5% to 15%, and positively impact marketing ROI by 10% to 30%.
Be interested in me, but don’t spy on me
The recently released 2025 Consumer Trends Index by Marigold surveyed 21,000 consumers. Regarding personalization, 73% think product recommendations based on past purchases are “cool,” and 80% view personalized birthday offers as fun and thoughtful. But 53% find ads based on third-party cookies “creepy.”
The excellent report by the Loymark team, Loyalty and CX Trends 2025: The Future of Consumer Behavior, also brings data on this topic. It cites a BCG survey with 5,000 global consumers showing that over 80% say they want and expect personalized experiences, but two-thirds have already experienced inappropriate, inaccurate, or invasive personalization.
See the difference? It’s simple: we want brands to know us, not spy on us. If I buy sneakers, I appreciate receiving tips on related products or content about sports, injury prevention, or how to improve my training. But it’s not cool to be flooded with (now useless) sneaker ads or to keep getting emails and SMS from other companies.
A loyalty factor
Specifically regarding loyalty programs and other loyalty initiatives, the Global Customer Loyalty Report 2025 by Antavo, which surveyed 10,000 program members worldwide, shows that 8 out of 10 (81.2%) prefer to buy from brands that offer personalized rewards—and those who redeem personalized rewards spend 4.3 times more.
But here’s proof of the disconnect between customers and brands, and how this is being poorly leveraged. According to the report, only 49.2% of loyalty program owners offer personalized rewards. And it’s worth noting that programs are privileged channels for obtaining zero-party data—essential for personalization—shared directly by customers.
Constant dialogue with the consumer
It’s clear that we, as consumers, are increasingly aware of the data we provide to companies and what we expect (and don’t expect) from them in return. Customers know well the difference between personalization and invasion of privacy, so it’s high time brands also have this clear, retaining only relevant data and balancing communications.
Therefore, for personalization to happen, understanding consumer preferences, knowing their journey, and when and how to approach them is key. Today’s technology allows us to know and reach customers to a great extent. It’s like a constant dialogue. But where this data comes from and how it’s used is the balancing point each company must find.
Here are some tips for thinking strategically about personalization:
Use Predictive AI for Relevant Recommendations
Leverage AI algorithms to analyze historical and behavioral data, offering customized recommendations. Simply adding a customer’s name to an email isn’t enough if the content isn’t relevant, timely, and—most importantly—not invasive.
Create Smart Segmentations
Clustering customers by just age or gender is not sufficient. Today, it’s possible to refine customer groupings based on behaviors, frequency, recency, and a range of habits that reveal much more about your clients.
Balance Personalization and Privacy
Focus on data voluntarily provided by customers (zero-party data—remember, loyalty programs are treasure troves of data) to create personalized experiences without crossing privacy boundaries. Avoid intrusive practices like ads based on third-party cookies.
Website Experience
Use personalization tools to tailor the browsing experience according to user group behaviors. This is also an excellent option for usability A/B testing.
Personalize Loyalty Programs
Offer customization and flexibility based on previous individual preferences, and enable redemption liquidity in programs by providing more partner options and reward choices through segmentation.
Gamification
Design missions and activities according to customer profiles and behaviors. You can’t engage different audiences with the same proposals. Data reveals the type of gamification that works best for each consumer segment.
That’s it, folks! I hope you enjoyed it. Comment, send suggestions, and share ideas!
Leading Questions About Personalization and Privacy
Why is personalization tricky for brands?
Because while consumers expect personalized experiences, they also value privacy. Going too far can make personalization feel intrusive rather than helpful.
What do consumers consider positive personalization?
Consumers appreciate product recommendations based on their own purchases and thoughtful gestures like birthday offers, as these feel relevant and considerate.
When does personalization cross the line into intrusion?
Personalization becomes intrusive when brands use third-party data or bombard customers with irrelevant ads and messages, making people feel watched instead of valued.
How does personalization impact loyalty programs?
Most customers prefer brands that personalize rewards, and those who redeem such rewards spend significantly more—yet less than half of programs offer this feature.
What should brands do to personalize effectively without overstepping?
Brands should focus on collecting only relevant data, understand customer preferences and journeys, and maintain an ongoing, respectful dialogue to ensure personalization feels welcome, not invasive.
