The Myth of Personalization: Brands Are Still Missing the Point

Personalization. It's the marketing industry's favorite magic trick—the promise to make every consumer feel like they are the only one in the room. It had the potential to turn every customer interaction into something special, something uniquely theirs. But let's be honest—many of these so-called 'personalized' efforts are about as personal as a generic loyalty card message from a grocery store. Sure, it's addressed to you, but it could be anyone.

For years, we heard that personalization was the game-changing frontier, the ultimate buzzword. It was supposed to make every consumer feel special, unique, and understood. But as we're about to enter 2025, instead of magic, most personalization feels fundamentally disconnected. Despite all the data and tools at our disposal, many brands fail to create anything resembling genuine human connection. The result? Many personalization efforts feel as impersonal as a pre-recorded hotline, missing the mark completely.

The reality? Personalization, in its true sense, remains more illusion than practice for many brands. The promises of personalized, meaningful experiences have often turned into automated, shallow gestures—like receiving a birthday email from a brand that doesn't even realize the last time you purchased from them was years ago. You might have even moved on to their competitor, and they haven't noticed. Instead of delivering meaningful interactions, we're left with mass emails that contain our first name and a reminder that we once browsed their product catalog years ago—maybe didn't even complete a purchase then.

So why is personalization still just a tired industry cliché for so many? And what are the genuine opportunities for brands willing to dig a bit deeper than just playing name-bingo with their CRM system?

The Personalization Mirage

A McKinsey report states that 71% of consumers expect companies to deliver personalized interactions, yet 76% feel frustrated when those expectations are not met[1]. Think about that. Seven out of ten customers expect to be understood, and the vast majority end up disappointed. This disappointment often stems from brands failing to connect the dots between customer data and actual needs—turning what could be a great experience into a missed opportunity. It’s almost like attending a highly acclaimed movie only to find out it was shot with a 1990s handheld camcorder. The buzz and excitement around personalization are there, but the execution often leaves audiences unimpressed.

One of the biggest reasons brands miss the mark is that they confuse data collection with customer understanding. Simply knowing that a person is 34 years old, owns a cat, and prefers oat milk in their latte does not mean you understand them. It means you have a series of data points—fragments of information that, without context, are practically useless. What personalization often boils down to today is taking these fragments and hoping they somehow form a complete picture—like trying to solve a puzzle without all the pieces, or worse, with pieces from entirely different puzzles. It results in a shallow, fragmented view of the customer that lacks meaningful context.

In Saudi Arabia and the UAE, personalization expectations have grown significantly, driven by a rapidly transforming digital landscape. Factors like high internet penetration, a predominantly young population, and cultural values that emphasize tailored service experiences have all played a part in shaping these heightened expectations[2]. Additionally, the cultural emphasis on personalized, face-to-face services in traditional Arab markets sets a higher bar for what customers expect in the digital sphere. The desire for personalized attention is deeply rooted, and brands that don't meet these expectations risk alienating a population accustomed to high-touch service. But despite all this data, the ability to make individuals feel truly understood has yet to meet those expectations.

Why Personalization Fails

Let's talk about the gap between data and experience—where so many personalization strategies go awry. As mentioned earlier, brands often gather data points but lack the meaningful insights needed to craft genuinely personal experiences. Take, for instance, a brand that knows a customer recently purchased fitness equipment but fails to understand that their interest stems from a health condition rather than a general fitness trend—missing the mark on how to engage them meaningfully. Poor personalization can lead to significant customer churn; in the U.S. alone, 30-40% of consumers have switched brands for better experiences[3], and we all know how trends often start with the US and ripple down to remaining markets.

Consider a major retail brand that implemented automated email offers without proper segmentation, resulting in irrelevant promotions and ultimately a mass exodus of customers. This illustrates how poor execution can backfire, turning customers off instead of building loyalty. Now, translate that statistic to the Middle East, where brand loyalty tends to be culturally ingrained—it’s evident that failing at personalization can be detrimental. Customers here tend to be more critical and, quite frankly, a bit cynical. They won’t hesitate to call out a brand’s shortcomings; it’s almost like a national sport. If they spot a brand slipping up, they’ll let everyone know about it—and they’ll do it with flair.

Effective personalization can significantly impact key business metrics. When done correctly, it leads to increased customer lifetime value (CLV) and improved retention rates—customers who feel understood are far more likely to stay loyal to a brand. Moreover, the ripple effect of a well-personalized customer journey is visible in enhanced satisfaction scores and reduced churn rates. Brands that successfully create a meaningful connection with their customers are not just enhancing individual experiences—they are driving tangible business growth, differentiating themselves in the competitive marketplace, and ultimately ensuring their sustainability and profitability.

The crux of the issue lies in focusing on shallow aspects of personalization. Using someone's name in an email or suggesting a product based on one past action might have been impressive years ago, but today, these attempts often come across as lazy and disconnected. Consider a recent study that found 83% of consumers are willing to share their data to create a more personalized experience, yet so many feel like they're getting little in return[4]. Brands promise personalization, but often deliver something superficial—a shallow attempt that misses the real needs of the customer.

Here lies the disconnect: brands think that by knowing a consumer's browsing history or shoe size, they have the green light to personalize. True personalization is not just about knowing a fact—it’s about understanding the "why" behind it. For example, why does a consumer keep coming back to your site but never actually make a purchase? The answer lies not in the data you collect but in the insights you derive from that data.

Consumer Backlash

Here's the funny thing about consumer psychology—when personalization is done right, it's magic. When it's done poorly, it's worse than if you hadn't bothered at all. Imagine a close friend giving you a "personalized" gift, only to realize they got your favorite color wrong and spelled your name incorrectly. Suddenly, the sentiment feels hollow, even insulting.

This is what happens when brands get personalization wrong. In a market like Saudi Arabia or the UAE, where loyalty can be fiercely strong, a failed attempt at personalization can push customers away faster than you can say "unsubscribe." Consumers are perceptive; they know when brands are using their data effectively and when they're merely guessing. A recent survey found that 52% of consumers feel frustrated when brands suggest products or services that are irrelevant to their needs, underscoring the importance of meaningful data use. And in today’s landscape, 63% of consumers will stop buying from brands that use poor personalization tactics[5]. That’s the cost of getting it wrong—a direct hit to loyalty and brand trust.

What True Personalization Means

So, what does effective personalization look like? It’s easy to point to the likes of Netflix and Kindle, which have set a gold standard for personalized experiences[6]. Their strategies aren’t just about using a customer's first name; they dive into behavioral data to understand the unique tastes and interests of each user. The outcome? Suggestions that feel not only accurate but thoughtful—making customers believe that the brand genuinely understands their preferences. This is the essence of personalization: crafting an experience that feels truly tailor-made, beyond surface-level interactions.

In the Middle East, the stakes are even higher. Let's explore two standout examples:

• Emirates Airline has excelled in using personalization to enhance customer satisfaction at every touchpoint. By tailoring in-flight experiences based on passenger history—meal preferences, entertainment choices, seat selection—Emirates makes even frequent flyers feel uniquely valued. This type of thoughtful engagement helps build deeper emotional connections and brand loyalty. The key takeaway here? Effective personalization is more than data—it’s about anticipating customer needs and making them feel prioritized.
• Carrefour UAE, through its MyClub loyalty program, successfully leverages AI to create highly relevant offers for shoppers. By analyzing past purchase behavior, Carrefour ensures that its promotions are not just timely but also meaningful to individual customers. This approach has led to significantly higher engagement rates, with customers feeling genuinely understood. What can brands learn? That personalization should be both timely and relevant, connecting directly to the customer's immediate needs.

These companies aren't simply adding names to emails; they're integrating empathy, behavior analysis, and context to provide experiences that truly resonate. For brands looking to enhance their personalization strategies, the message is clear: go beyond the basics. Empathy should be at the core—personalization should not only predict needs but also understand the nuances that make every customer journey unique.

The Cliché that Refuses to Die

For marketers and brands, it's time to rethink what personalization actually means. It’s not about automation; it’s about connection. The biggest mistake we make is treating personalization as a mechanical process rather than a relational one. Technology has given us the ability to gather data, but the challenge is to use that data in a way that deepens the relationship rather than making it transactional. Consider the difference between a streaming service that merely suggests top hits versus one that tailors its suggestions based on recent life events or preferences gathered through customer interactions—one deepens the relationship, the other remains superficial.

Brands should focus on achieving a deep understanding of their customers. It’s about listening, observing, and most importantly, connecting the dots. If a consumer is browsing winter coats, it’s not just about recommending the latest coat. It’s about understanding the context—is this for an upcoming trip? Does this align with a recent change in their buying patterns? True personalization is nuanced, subtle, and driven by the intent to add value rather than extract value. A prime example is Spotify, which creates personalized playlists not just based on past listening habits but also tapping into trending moods, giving users a sense of being understood beyond algorithms.

To succeed, brands must employ what I call "empathetic personalization." This means moving beyond the superficial use of data points to genuinely understanding and anticipating the needs of the consumer. It’s about asking the deeper questions: What problem are we solving for our customer? How can we make them feel understood? When personalization is approached from this angle, it becomes less of a gimmick and more of an experience that can build genuine loyalty.

Building Authentic Connections

As we draw to a close, it’s worth reflecting on the current state of personalization. We started with grand visions—each customer being treated uniquely, brands intuitively knowing what people need and when they need it. Instead, we ended up with a lot of first-name basis emails and shallow attempts at engagement.

The illusion of personalization can no longer sustain itself. Is your brand truly seeing your customers, or just seeing data points? It’s time to ask if you’re connecting or merely automating.

Actionable Steps to Enhance Personalization:

• Prioritize Empathy Over Automation: Start by asking deeper questions about your customers. Are you trying to solve their real problems, or just recommending based on surface-level data? Understand their context, not just their clicks.
• Use Behavioral Data to Craft Journeys, Not Just Offers: Instead of sending standalone recommendations, think about where the customer is in their journey. If someone is consistently exploring vacation spots, instead of pushing discounts, offer information about trip planning—help them reach their goal.
• Refine Segmentation: Move beyond traditional segmentation like age or location. Understand segments based on behavior, preferences, and needs. Use these insights to create more nuanced and personalized messaging that actually adds value.
• Test and Iterate: Regularly test different personalization tactics and adapt based on customer responses. Not everything will hit the mark the first time, and that’s okay. Iteration is key—learn from your customers by continuously refining your approaches based on what resonates most effectively.
• Collaborate Across Teams: Personalization shouldn’t live solely in the marketing department. Involve customer service, product development, and even sales teams. The richer the insights and contributions across your organization, the more genuinely personal your interactions can become.

Brands that implement these strategies move from the superficial to the substantial, creating loyalty that is hard to break. It’s about moving beyond the tired clichés and truly committing to understanding and serving each customer.

Imagine if brands truly took the time to understand their customers, to anticipate needs in a way that felt organic and meaningful. Imagine the loyalty that could be fostered by making customers feel genuinely understood. It’s time for brands to put aside the shallow tricks of outdated personalization tactics and lean into what really matters—authenticity, empathy, and meaningful connection. The emperor may have no clothes, but the solution isn’t a new outfit; it’s about understanding the people who are watching.