Mayank Patel
Apr 4, 2025
6 min read
Last updated Apr 7, 2025
What you see here above is a recent statistic shared by Klarna—who’s a “buy now, pay later" integration provider for ecommerce companies worldwide—and it proves that personalization is indeed desired by consumers across different age groups.
Moreover, the online shopping experience has never been more tailored. Product recommendations almost feel like mind-reading, dynamic pricing shifts based on browsing behavior, and emails feel handwritten like letters. But when exactly do shoppers feel creeped out?
Shoppers enjoy personalization when it makes their lives easier. A well-timed product suggestion, a personalized discount, or an email reminding them about an abandoned cart can feel like a helpful nudge rather than a sales push. When done right, personalization improves the shopping experience and helps customers discover products that genuinely interest them.
Despite its advantages, hyper-personalization can cross into unsettling territory. Ever had an ad pop up for something you just talked about with a friend? Many consumers feel their data is being used in ways they never explicitly agreed to. Tracking behavior across websites, analyzing voice commands, or making aggressive retargeting moves can leave customers feeling watched rather than valued.
According to a recent report by Marketing Charts, consumers categorize marketing tactics as "creepy" when they involve intrusive tracking, unexpected personalization, or excessive use of location data.
Examples include ads from unknown brands based on geographic tracking (55% creepy), emails highlighting specific visited locations (50% creepy), and ads using third-party tracking cookies (53% creepy).
The feeling of unease that some shoppers experience with hyper-personalization can be linked to the "uncanny valley" effect—a concept from robotics that suggests when something is too human-like, but not quite right, it creates discomfort. The same applies to marketing: if personalization is too precise, it moves from feeling convenient to unsettling.
For example, receiving an email that says, "We noticed you’ve been looking at running shoes—here’s a discount!" feels helpful. But receiving a message that says, "We saw you spent 7 minutes looking at blue Nike running shoes in size 10 at 11:45 PM on Monday" feels invasive.
To address privacy concerns, data protection laws like the GDPR (General Data Protection Regulation) in Europe and the CCPA (California Consumer Privacy Act) in the U.S. have introduced strict guidelines on data collection and usage. Apple’s App Tracking Transparency (ATT) framework, which requires apps to get explicit permission before tracking users across different platforms, has further restricted how brands gather consumer data.
These regulations have pushed brands to shift from third-party data collection (such as tracking cookies) to first-party and zero-party data, meaning data that customers willingly provide through direct interactions. Companies that fail to comply risk hefty fines and a damaged reputation. Thus, this makes transparency a non-negotiable part of personalization strategies.
The key for online retailers and D2C brands is “careful personalization”—using data wisely without making customers feel like they’re under surveillance. Here’s how:
As brands navigate privacy-first marketing, several key trends are emerging:
AI-driven hyper-personalization is heading towards one-to-one e-commerce, where every aspect of the shopping journey—from product discovery to checkout—is tailored to an individual user’s real-time needs, context, and behavioral signals.
Most brands today are scratching the surface with generic product recommendations, but AI enables an e-commerce experience that feels uniquely curated for each shopper, in real time. Here’s how:
AI builds multi-dimensional user personas by analyzing micro-interactions, such as hover time on a product, scroll depth, abandoned carts, or even cursor movements.Incorporating latent interests using NLP from chat interactions, reviews, or voice searches.AI can cluster users based on psychographics (why they buy) rather than just demographics (who they are).
AI dynamically rearranges homepage layouts, banners, and even UI components based on user behavior. Example: If a user frequently shops for eco-friendly products, the UI adapts by showing more sustainability messaging and related items. AI modifies email content in real-time at the moment of opening, showing updated pricing, inventory status, or local weather-based product recommendations.
AI detects intent through pattern recognition, even before the customer explicitly signals interest. Example: If a user searches for “running shoes” but doesn’t click any, AI might infer indecision and trigger an instant chatbot interaction with a personalized discount or a "best for your foot type" guide. AI can analyze browsing speed—if a user lingers on multiple high-ticket items, it may trigger a buy now, pay later (BNPL) prompt.
Semantic search using AI ensures that if someone searches for "casual office wear," they get chinos and loafers instead of a random mix of products with “casual” or “office” in the name.AI refines search by factoring in weather, seasonality, and historical user preferences (e.g., favoring a specific brand or price range).Visual search allows users to upload an image, and AI finds similar products—but hyper-personalized results would prioritize brands, colors, or styles the user prefers.
AI analyzes user sentiment in reviews, past chats, and social media activity to adjust messaging tone. Example: If a user left a complaint about delayed shipping in the past, AI-generated emails might acknowledge the concern and offer expedited shipping as a goodwill gesture.
Instead of bombarding users with the same product ad, AI modifies retargeting ads dynamically:
If a user added an item to the cart but didn’t check out, the ad might show a "last few in stock" urgency message. If they just browsed without adding to cart, AI could show social proof-driven ads (“500+ bought this last week”). If they recently purchased a product, instead of retargeting them with the same item, AI suggests relevant accessories.
AI adjusts pricing in real time based on user behavior, demand elasticity, and inventory levels.Example: If a frequent buyer hesitates at checkout, AI might generate a "one-time loyalty price" just for them. Personalized discounting factors in customer LTV—VIP customers might see better deals, while new users might get onboarding offers.
Conversational AI (voice or text) can function as intelligent shopping concierges. Example: Instead of static filters, a chatbot could ask: a. "Are you looking for a formal or casual jacket?" or b. "Do you prefer leather or fabric?" AI learns implicit preferences over time, remembering color, fit, and style preferences across visits.
Personalization isn’t going anywhere—it’s too valuable for both brands and consumers. The brands that win will be the ones that make personalization feel helpful, not invasive. Thoughtful, consent-driven strategies will keep shoppers engaged and build long-term trust. Shoppers don’t fear personalization itself. They fear bad personalization. Get it right, and they’ll keep coming back.