June 27, 2025
Your Customers Want Personalisation. Why Don’t You?
Despite overwhelming evidence that personalisation drives stronger results, many businesses are still relying on outdated, blanket-style discounts. New research from Harvard Business Review, in collaboration with Talon.One, shows that only 56% of companies currently offer personalised promotions or discounts.
That means nearly half of organisations continue to send the same offer to every customer, regardless of their history, preferences, or behaviour, wasting valuable budget and missing out on loyalty-building opportunities.
Christoph Gerber, CEO at Talon.One, commented: “This data highlights what we call the Personalization Paradox. Until businesses invest in personalising promotions and can see the ROI directly, they won’t grasp the business benefits and will be reluctant to push it up the list of strategic priorities. This means that today, too many brands still rely purely on blanket discounting, which eats into their margins and holds them back from improving customer engagement and loyalty.”
No Plans for Personalised Promotions
Even more telling is that 22% of the businesses have no plans to personalise promotions. As many as 17% know they’re behind and say they plan to adopt personalisation soon, but aren’t there yet. At a time when margins are tight and profitability is more crucial than ever, this hesitation may be costing them more than they realise.
Among those already implementing personalised discounts, the results are clear, as 94% report seeing tangible benefits. Of these, 62% have noted an uptick in sales, 47% have experienced a boost in customer loyalty, and 44% say personalisation has improved the overall customer experience. This indicates that tailoring isn’t just a nice-to-have—it’s becoming a must-have for brands looking to compete in today’s experience-driven economy.
These benefits only grow when brands integrate promotions with their loyalty strategies. Respondents from companies that have already connected these systems partially or fully are seeing impressive results. They report everything from higher customer retention and increased revenue to better data collection and stronger returns on marketing investments. Despite the success stories, many companies remain hesitant, often due to internal limitations, outdated systems, or simple prioritisation of other initiatives.
Uncertainty Around Value
In addition, a quarter of businesses not yet personalising their promotions cite unclear ROI as a reason for delaying adoption. Another 28% say other business goals are simply taking precedence. This disconnect between what customers clearly want and where businesses are investing is creating a widening gap between brand promise and brand experience.
The irony is that most businesses already say they plan to focus more on profitability in the year ahead, especially when it comes to promotions and loyalty. Additionally, 65% of organisations plan to emphasise the profitability of discounts, and 66% say the same for loyalty programs. The foundation is there. What’s missing is the follow-through.
In a landscape where consumer expectations are shaped by Amazon-like convenience and Netflix-style personalisation, generic promotions no longer cut it. The tools to personalise experiences at scale exist—and they’re delivering results. But until brands stop treating customer engagement like a numbers game and start investing in smarter, more integrated strategies, they’ll continue to miss out on what could be their most powerful profit lever.