The importance of online personalization is perhaps the industry’s worst kept secret. Previously a luxury service addition, online personalization is now a non-negotiable part of the unspoken contract between customer and company. According to Epsilon, 80% of people are more likely to patronize companies that provide relevant services. Consequently, companies are rushing to offer online personalization across all communication channels. Based on data from Segment, 85% of companies believe their personalization efforts are successful. However, only 60% of customers agree. Persisting in this gap is detrimental to both brands and customers.


Since the turn of the century, there has been a shift of power from business to the customer. In 2023, customers will have even more power. As a result, customer experience has become critical to brands’ market performance. Providing online shoppers with products and services relevant to their preferences is an important part of a positive customer experience. Companies are also winners when it comes to online personalization. Businesses that adopt advanced online personalization strategies can achieve an ROI of as much as $20 on every dollar spent. That’s why personalization will be hugely important this year. However, there will undoubtedly be some new developments in the online personalization trends of 2023.

Central to the online personalization trends for 2023 is the issue of data privacy. Customers are increasingly wary of how much access companies have to their personal data and how this information is used. Therefore, they demand more control over the use of their personal information. Because of the power they possess, brands have no choice but to obey. However, the demand for personalization is not diminishing any time soon. So companies need to offer online personalization in a way that doesn’t violate increasingly stringent data privacy laws. It will certainly be interesting to see how companies respond to this challenge.


Personalization is all about increasing brand engagement and building connections with customers. Here are five exciting personalization trends for 2023 that entrepreneurs should consider to excel this year:


According to Gartner, 84% of marketing executives recognize AI’s ability to improve personalization. However, only 17% of them make full use of this technology. As more companies strive to secure customer loyalty, the use of AI is likely to increase. This technology will provide advanced analytics that can sift through tons of data and generate insights.

AI is likely to play a major role in predictive online personalization. Therefore, companies can post highly relevant product and content recommendations on their websites. Customer segmentation is another use case for AI that will increase revenue. With robust data analytics tools available, marketers can better target segments of their customer base and achieve higher conversions. In addition, AI-powered marketing automation enables brands to deliver real-time personalized services that delight customers.


An increase in internet traffic from mobile devices is one of the main drivers of change in e-commerce. Therefore, the shift to mobile commerce will also influence online personalization trends for 2023. Currently, 79% of smartphone users have made purchases on their phone in the past six months. Therefore, it will be detrimental to businesses to continue to ignore mobile experiences. Brands now need to invest in mobile-friendly websites and native apps. Progressive web apps are also worth considering. Then marketers can use contextual and behavioral targeting. For example, temporary offers and personalized discounts can be sent via push notifications. As a result, engagement and conversion rates should increase.


Without data, online personalization is practically impossible. For years, marketers have relied on third-party cookies to collect data to personalize services. Unfortunately, many consider this method an unacceptable invasion of privacy. As a result, companies such as Microsoft, Apple and Mozilla have blocked the use of these cookies. Also, Google – the largest stakeholder in the browser market – plans to phase out third-party cookies this year. As a result, marketers must find alternatives to targeted advertising.

The obvious alternative is to use zero-party and first-party data. Most people are willing to share their data in exchange for online personalization. In fact, according to Segment, 69% of customers appreciate personalization, provided it’s based on data they’ve shared with the company. To ensure that they voluntarily provide their personal information, brands must gain customer trust. Businesses must provide value and demonstrate their commitment to data security. There should be more transparency and the privacy policy should be clearly stated. Brands committed to zero and first-party data will earn the loyalty of their customers. Also, they will avoid harsh penalties from GDPR, CCPA and similar regulatory bodies.On the other hand, customers can feel more secure. In the end it is a win-win situation.


Time and location are crucial for online personalization. Therefore, one of the online personalization trends for 2023 will be location-based marketing. 83% of marketers already confirm the efficiency of location-based targeting. That’s why geo-targeting and geo-fencing marketing are essential strategies this year. These marketing methods activate ads as soon as customers enter a certain geographic area.

For example, sending personalized offers to customers when they are near the brand’s physical stores can lead to more purchases. Since this advertising method can be done both offline and online, it guarantees that the target audiences will see the ads at the right time. In addition, the cost of designing location-based campaigns is relatively affordable. That means a higher ROI, which is obviously good news for marketers.


Nowadays everything is omnichannel. Similarly, omnichannel personalization is expected to be one of the online personalization trends for 2023. For many companies that have already mastered other areas of personalization, this could be the last piece of the puzzle. It includes connecting personalized services across all touchpoints into one seamless experience that will ensure happy customers. However, achieving omnichannel personalization requires a lot of work. It means brands need to develop better data strategies and map customer journeys. There should also be more investment in automation tools, especially AI-powered ones.What is certain is that companies working on omnichannel personalization will be ahead of the competition.

In short, 2023 will be an important year for online personalization. We will experience numerous changes in how brands seek to personalize services and enrich customer experiences. These personalization trends for 2023 should be closely monitored by brands looking to make this business year a lasting experience.