What: BCG's first Personalization Index reveals that only 10% of companies are leaders in personalisation, despite the potential for $2 trillion in value creation through AI-enhanced customer experiences across sectors.

Why it is important: The gap between leaders and laggards in personalisation is widening, as demonstrated by only 10% of companies successfully scaling their AI applications, making it imperative for businesses to act now or risk falling behind.

The BCG Personalization Index introduces a comprehensive framework for measuring how companies deliver on five key promises of personalisation that customers expect. These promises - Empower Me, Know Me, Reach Me, Show Me, and Delight Me - form the foundation for evaluating customer experience across sectors. The research reveals that while personalisation leaders achieve compound annual growth rates 10% higher than laggards, only 10% of companies qualify as leaders. The study examined 200 brands through mystery shopping, customer surveys, and financial analysis, identifying a $2 trillion opportunity in the next three years. Different sectors face unique challenges, from retail's struggle with discretionary spending to healthcare's need to balance personalisation with privacy. Success requires viewing personalisation as a strategic mandate, with clear leadership and measurement through dedicated profit and loss statements.

IADS Notes: Recent market evidence validates the urgency of personalisation transformation. In March, research showed that 71% of consumers now expect personalised interactions, while only 32% of retailers keep pace with customer behavior. By February, Selfridges demonstrated success through their innovative 'Unlocked' loyalty program, combining AI-powered personalisation with experiential engagement. The transformation's impact is significant: retailers implementing AI solutions report 15-30% improvements in customer service efficiency, while Walmart's processing of 850 million data points showcases the scale of potential optimisation. However, the challenge remains substantial, as December data revealed that over 35% of loyalty program members plan to cancel traditional memberships, highlighting the need for more sophisticated, personalised approaches.

The 2025 BCG Personalization Index Report