Excessive personalization turns consumers away despite user demand for relevance

The news: Personalization matters, but excessive customization and unclear data usage can weaken brand loyalty.

  • 93.6% of US adults say personalized experiences are at least somewhat important when choosing a brand, per Amperity’s 2026 Consumer Priorities Report.
  • About half like brands that remember their preferences and purchase history (56.0%) and are more loyal to brands that can show they know their audience (50.1%).
  • Three-quarters say they would be more loyal to brands that are transparent about data use.

However, it’s possible for brands to take customization too far.

  • The top deterrent to selecting a specific brand is “creepy” personalization, which 57.5% of respondents say would make them less likely to choose a brand.
  • 45.4% say repetitive messaging is a deterrent, on par with high prices at 45.2%.

What it means: While many consumers reject hyperpersonalization over privacy concerns, brands backed by trust have an advantage. Tailoring responses and experiences alone no longer creates loyalty—customization has to be accompanied by transparency and demonstrable relevance.

  • Consumers’ selectiveness about how personalization is delivered shows that, rather than flat out rejecting it, users have concrete boundaries.
  • Relevant recommendations can strengthen customer relationships, but experiences unsupported by a clear value exchange can undermine them.

Recommendations for marketers: AI makes it easier to personalize everything from on-site product recommendations to email content and customer service interactions. However, it also increases the risk of over-personalization if brands fail to explain how it’s being used or if they rely on customer data in ways that feel intrusive. There are ways to deploy AI to walk the line between personalization that builds up relationships and solutions that break them.

  • Rely on human oversight for judgment calls when deciding whether AI personalization offerings dig too deep.
  • Offer clarity on what data is being collected and how it’s being fed into any AI models so brands can build trust.
  • Focus on loyalty and relationship-building over high-volume messaging.

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