Personalization is no longer optional—it's a necessity.
Brands everywhere claim to "know their customers," but how many truly understand them beyond mere demographics or generic personas? This question drives a crucial conversation that can shape the success or failure of any brand, particularly as digital experiences evolve and customer expectations rise.
In a recent episode of The Frictionless Experience podcast, my co-host Nick Paladino and I explored this topic with Angel Singh, VP of Customer Experience at Petco, who shared insights from her extensive career in the retail sector. Listen to the episode, where we talked about the difference between knowing and assuming—and why it's so important to keep curiosity alive and assumptions in check.
"Many companies don't actually know who their customers are," Angel pointed out. Instead, they rely heavily on data mining and assumptions rather than a deep, human understanding of their customers. Such an approach can lead brands down the wrong path, investing heavily in marketing campaigns, pricing strategies, or product lines that don't resonate with their actual audience.
Nick elaborated on this risk: "Not knowing who your customers are, yet assuming your customers are the same as your competitor's, is a fatal flaw."
When brands make assumptions about customer behavior or needs based on competitors, they overlook the unique reasons customers are attracted to their brand in the first place. This oversight can lead to wasted resources, missed opportunities, and customer dissatisfaction.
For example, assumptions often lead companies to target deal-seekers—those attracted by discounts and offers—rather than ideal, long-term customers who genuinely connect with the brand's values and products.
Angel stressed the importance of distinguishing between these types of customers and focusing efforts on retaining and satisfying the latter group. "Are you acquiring customers who are actually your better customers, or just those who want a deal?" she asked, pointing to the need for a tailored approach to customer acquisition.
One solution to overcoming assumptions is a robust data strategy. Data is essential, but only if used correctly. Without clarity, even the best marketing or product efforts miss the mark. When brands collect data with a purpose—seeking to understand rather than to confirm assumptions—they gain insights into who their customers really are, and what they truly want.
A large part of using data effectively involves unifying data sources to create a holistic view of the customer experience. Angel shared that many companies face challenges connecting siloed data systems, often leading to fragmented insights and inconsistent customer experiences. If we don't have integrated data, technology, and teams, we're bound to miss out on creating a true customer journey.
The stakes are especially high for brands that serve a younger demographic.
"Generations get younger and younger; they have less patience to deal with clunky login and checkout processes," Angel explained, emphasizing that expectations are evolving as quickly as technology.
For younger consumers, a frictionless, data-driven experience that anticipates their needs is the baseline expectation. Brands that fail to meet this standard risk losing them to competitors with more seamless digital solutions.
Angel noted that each generation has unique expectations for digital interactions, which retailers must adapt to if they want to create genuinely personalized experiences. The younger generations are especially critical of clunky, slow websites or outdated payment options. If you don't have Apple Pay, if your checkout is confusing, younger generations are simply going to leave.
To these consumers, ease and efficiency are non-negotiable. From simple logins to personalized product recommendations, every touchpoint must feel intuitive and seamless. Failure to deliver on this expectation can mean losing a customer before they even make it to the cart.
Personalization means different things to different people, even within a single company. Angel shared her experience asking various stakeholders what "personalization" means to them:
This lack of a shared understanding can hinder a brand's ability to execute a cohesive strategy, leading to disjointed efforts that may not benefit the customer experience.
The truth is, personalization is complex, requiring the right combination of data, technology, and team alignment. Building a personalized experience goes far beyond simply using a customer's name in an email. It's about anticipating customer needs, recommending relevant products, and crafting interactions that feel authentic.
As Angel explained:
"Personalization is a data build. It's cleaning up your data, it's organizing your data, it's getting the data to the right systems, it's integrating those systems, and then it's making the teams work with each other and be customer -centric. And so hopefully, if anyone who is going through a personalization journey or transformation, by the time they get through it, they have access to the data and they know their customers or the customers that they want, better than when they started."
One emerging solution to the personalization challenge is using artificial intelligence (AI). AI enables brands to deliver customized experiences at scale, yet many companies are hesitant to fully embrace it.
Angel explained that her team at Petco uses AI to enhance customer experiences by generating hyper-specific recommendations. "If I'm a cat owner, why are you showing me a dog? I don't have a dog. Show me a cat, and show me the type of cat I have!" she said, underscoring how AI can power meaningful and impactful personalization.
However, resistance to AI persists, often due to fears that it could displace jobs or that it's simply too complex. Angel tackled this misconception head-on: "It's a helper. It helps you think of things that you might not have thought about before."
Rather than seeing AI as a replacement, brands should view it as a tool to assist teams in creating personalized experiences more efficiently. By relieving the burden of repetitive tasks—like creating countless banner variations—AI frees creative teams to focus on higher-value work.
Angel's experience across major retail brands has shown her that effective personalization and frictionless experiences are ultimately the product of a customer-centric culture. A culture that prioritizes the customer requires not only technological investment but also alignment across teams and departments.
For example, Angel shared how her team collaborates with marketing, technology, and digital teams to ensure a unified experience. Everyone is in service to the customer. That means working together, even when it's difficult.
This culture of collaboration must also extend to metrics and goals. Angel highlighted that siloed teams often track separate KPIs, which can lead to conflicting priorities and inefficiencies. "You should have three or four business KPIs and customer KPIs that all teams march towards, instead of their separate siloed OKRs and KPIs," she advised. By aligning goals around the customer, brands can create a more cohesive experience across every interaction.
For brands seeking to create truly personalized experiences, the journey starts with curiosity and a commitment to knowing customers beyond surface-level data. This means challenging assumptions, unifying data sources, embracing AI, and fostering a culture that keeps the customer at the center of every decision.
For brands aiming to deliver frictionless experiences, if you don't know who your customers are, that's your number one problem. Gather the data, understand their journey, and always look to improve. Personalization is a journey that requires both a long-term vision and a willingness to adapt as customer expectations evolve.
It's not easy, but it's essential. Brands that rise to this challenge will not only meet the expectations of today's customers but also lay the foundation for lasting customer loyalty.