The Influence of Personalized Marketing on Customer Engagement and Customer Lifetime Value
Abstract
Personalized marketing has emerged as a critical strategy for enhancing customer engagement and customer lifetime value (CLV) in today’s competitive business environment. By leveraging customer data and advanced analytics, businesses can deliver tailored experiences that resonate with individual preferences and behaviors. This study examines the influence of personalized marketing on customer engagement and CLV, focusing on its impact on customer satisfaction, loyalty, and long-term profitability. The research aims to identify effective strategies for implementing personalized marketing and propose recommendations for maximizing its impact on customer relationships. Using a mixed-methods approach, this study combines quantitative analysis of customer data with qualitative interviews with marketing professionals and customers. Data were analyzed to assess the relationship between personalized marketing, customer engagement, and CLV. The findings reveal that personalized marketing significantly enhances customer engagement, leading to higher satisfaction and loyalty. However, challenges such as data privacy concerns and implementation costs can hinder its effectiveness. The study concludes that businesses must balance personalization with ethical data practices to maximize the impact of personalized marketing on CLV. This research contributes to the discourse on marketing strategy by providing practical recommendations for businesses to enhance customer relationships and drive long-term profitability through personalized marketing.
Full text article
References
Acharjee, P. B., Salunkhe, H. A., Thorat, S., Dhote, R., Khnbhadiya, P., Manchanda, A., & Sharma, N. (2024). Artificial Intelligence (AI) in CRM (Customer Relationship Management): A Sentiment Analysis Approach. TQCEBT - IEEE Int. Conf. Trends Quantum Comput. Emerg. Bus. Technol. TQCEBT 2024 - 2nd IEEE International Conference on Trends in Quantum Computing and Emerging Business Technologies 2024. Scopus. https://doi.org/10.1109/TQCEBT59414.2024.10545168
Bathla, D., & Ahuja, R. (2024). Leveraging big data analytics for customer experience excellence in metaverse. Dalam Entrepreneurship and Creativity in the Metaverse (hlm. 128–142). IGI Global; Scopus. https://doi.org/10.4018/979-8-3693-1734-1.ch010
Behare, N., Bhagat, S., & Sarangdhar, P. (2025). Revolutionizing customer experience with AI-powered personalization. Dalam Strateg. Brand Manag. In the Age of AI and Disrupt. (hlm. 439–462). IGI Global; Scopus. https://doi.org/10.4018/979-8-3693-9461-8.ch018
Biswas, P., Neogi, S. G., Arockiam, D., & Mitra, A. (2024). The Importance of Multi-Lingual Sentiment Analysis in Digital Marketing. Dalam Shukla B., Agarwal R., Khatri S.K., Soni K.M., Singh A.V., Jain S., Sindhwani N., Chaudhary A., & Gautam R. (Ed.), Int. Conf. Reliab., Infocom Technol. Optim. (Trends Future Dir.), ICRITO. Institute of Electrical and Electronics Engineers Inc.; Scopus. https://doi.org/10.1109/ICRITO61523.2024.10522115
Dahake, N. S., Gajghate, A., Dahake, P. S., & Bansod, S. (2024). A Transformative Impact of IoT and AI by Predictive Analytics on Modern Marketing Strategies: A Study of its Significance & Accuracy. Int. Conf. Adv. Comput., Commun. Inf. Technol., ICAICCIT, 1150–1158. Scopus. https://doi.org/10.1109/ICAICCIT64383.2024.10912388
Daniels, K., Vonck, S., Robijns, J., Quadflieg, K., Bergs, J., Spooren, A., Hansen, D., & Bonnechère, B. (2025). Exploring the Feasibility of a 5-Week mHealth Intervention to Enhance Physical Activity and an Active, Healthy Lifestyle in Community-Dwelling Older Adults: Mixed Methods Study. JMIR Aging, 8. Scopus. https://doi.org/10.2196/63348
Davidson, J. D., & Rajeswari, P. S. (2025). A case study on how Amazon uses personalization to win back Prime subscription lapsers. Journal of Information Technology Teaching Cases. Scopus. https://doi.org/10.1177/20438869251325244
Dwivedi, D. N., Batra, S., & Pathak, Y. K. (2024). Enhancing Customer Experience: Exploring Deep Learning Models for Banking Customer Journey Analysis. Dalam Sharma H., Chakravorty A., Hussain S., & Kumari R. (Ed.), Lect. Notes Networks Syst. (Vol. 843, hlm. 477–486). Springer Science and Business Media Deutschland GmbH; Scopus. https://doi.org/10.1007/978-981-99-8476-3_39
Ganeshkumar, M., Karunakaran, S., Muzhumathi, R., & Suguna, R. (2024). AI-Driven Marketing Insights: Harnessing Machine Learning for Enhanced Consumer Engagement and Personalization. Int. Conf. Softw., Syst. Inf. Technol., SSITCON. 2024 1st International Conference on Software, Systems and Information Technology, SSITCON 2024. Scopus. https://doi.org/10.1109/SSITCON62437.2024.10796558
Gupta, S., Rao, S. B., & Pandey, M. (2024). Understanding Purchase Decisions Through Predictive Analytics and Consumer Behavior Models. Int. Conf. Comput. Commun. Netw. Technol., ICCCNT. 2024 15th International Conference on Computing Communication and Networking Technologies, ICCCNT 2024. Scopus. https://doi.org/10.1109/ICCCNT61001.2024.10725198
Jaiswal, A., Kumar, A., Hazra, A., Mazumdar, N., & Singh, J. (2024). Optimizing Power Beacon Deployment in Battery-Less Wireless Sensor Networks for Transforming E-Commerce. IEEE Transactions on Consumer Electronics, 70(4), 6830–6837. Scopus. https://doi.org/10.1109/TCE.2024.3423435
Karwa, S., Shetty, N., & Nakkella, B. (2024). Churn Prediction and Customer Retention. Dalam Predictive Analytics and Generative AI for Data-Driven Marketing Strategies (hlm. 98–113). CRC Press; Scopus. https://doi.org/10.1201/9781003472544-9
Mirdan, A. S., Buyruko?lu, S., & Baker, M. R. (2025). Advanced deep learning techniques for sentiment analysis: Combining Bi-LSTM, CNN, and attention layers. International Journal of Advances in Intelligent Informatics, 11(1), 55–71. Scopus. https://doi.org/10.26555/ijain.v11i1.1848
Mitra, A., & Das, S. (2024). Exploring the synergy of artificial intelligence and big data analytics in enhancing customer engagement strategies: Future trends, ethical implications, and business outcomes. Dalam Improv. Serv. Qual. And Cust. Engag. With Mark. Intell. (hlm. 196–210). IGI Global; Scopus. https://doi.org/10.4018/979-8-3693-6813-8.ch008
Mohammad, A. A. S., Al Oraini, B., Mohammad, S., Masadeh, M., Alshurideh, M. T., Almomani, H. M., Vasudevan, A., Al-Fakeh, F. A., & Al-Adamat, A. M. (2024). Analysing the Relationship Between Social Content Marketing and Digital Consumer Engagement of Cosmetic Stores. Dalam Stud. Syst. Decis. Control (Vol. 226, hlm. 97–109). Springer Science and Business Media Deutschland GmbH; Scopus. https://doi.org/10.1007/978-3-031-73545-5_9
Priyadharshini, L., Gautam, K. K., Agrawal, S., Murali Krishna Rao, D. N., Natarajan, S., & Muralidhar, L. B. (2024). IoT-Enabled Consumer Behavior Tracking. Int. Conf. Comput. Charact. Techniques Eng. Sci., IC3TES. 2024 2nd International Conference Computational and Characterization Techniques in Engineering and Sciences, IC3TES 2024. Scopus. https://doi.org/10.1109/IC3TES62412.2024.10877273
Pundir, S., Garg, H., Singh, D., & Rana, P. S. (2024). A systematic review of supply chain analytics for targeted ads in E-commerce. Supply Chain Analytics, 8. Scopus. https://doi.org/10.1016/j.sca.2024.100085
Raja, A., Siddique, F., Hasan, M. Z., Hussain, M. Z., Altaf, J., & Kousar, S. (2024). Personalized Shopping Experiences: Leveraging Big Data Analytics in E-commerce for Enhanced Customer Engagement. Int. Conf. Decis. Aid Sci. Appl., DASA. 2024 International Conference on Decision Aid Sciences and Applications, DASA 2024. Scopus. https://doi.org/10.1109/DASA63652.2024.10836440
Saini, K., & Singh, A. (2024). Data-Driven Strategies for Improving Customer Engagement and Retention in E-commerce. Dalam Mittal H.K. & Singla S. (Ed.), Proc. - Int. Conf. Technological Innovations Advance Computing, TIACOMP (hlm. 499–506). Institute of Electrical and Electronics Engineers Inc.; Scopus. https://doi.org/10.1109/TIACOMP64125.2024.00089
Sajan, A., & Giri, P. (2025). Understanding artificial intelligence and its major role in branding. Dalam Strateg. Brand Manag. In the Age of AI and Disrupt. (hlm. 127–153). IGI Global; Scopus. https://doi.org/10.4018/979-8-3693-9461-8.ch006
Samal, A., Radhakrishna, H., Rajimol, K. P., Lakshmi, S. R., Mehrotra, D., & Girish, H. S. (2024). An Investigation into the Role of AI-Based Innovation in Supporting the Next Generation of Startup Entrepreneurs. Nanotechnology Perceptions, 20(S5), 548–555. Scopus. https://doi.org/10.62441/nano-ntp.v20iS5.51
Segarra-Moliner, J.-R., & Moliner-Tena, M.-Á. (2024). Engaging in customer citizenship behaviours to predict customer lifetime value. Journal of Marketing Analytics, 12(2), 307–320. Scopus. https://doi.org/10.1057/s41270-022-00195-2
Shukla, J., Dhariwal, N., & Marken, G. (2024). Churn Prediction and Customer Behavior Analysis in Telecommunications. Int. Conf. Adv. Comput. Res. Sci. Eng. Technol., ACROSET. 2024 International Conference on Advances in Computing Research on Science Engineering and Technology, ACROSET 2024. Scopus. https://doi.org/10.1109/ACROSET62108.2024.10743509
Singh, B., & Kaunert, C. (2024). Future of Digital Marketing: Hyper-Personalized Customer Dynamic Experience with AI-Based Predictive Models. Dalam Revolutionizing the AI-Digital Landsc.: A Guide to Sustainable Emerg. Technologies for Marketing Professionals (hlm. 189–208). Taylor and Francis; Scopus. https://doi.org/10.4324/9781032688305-14
Singh, S., Misra, R., Bhatnagr, P., & Aggarwal, E. (2024). Can an OTT platform develop brand advocates via customer engagement? An integration of platform and message-based factors. Asia Pacific Journal of Marketing and Logistics. Scopus. https://doi.org/10.1108/APJML-05-2024-0666
Talukder, M. B., Lina, F. Y., Kumar, S., & Khan, M. R. (2024). Data-driven personalization in the sharing economy. Dalam Build. Clim. Neutral Econ. Through Digit. Bus. And Green Skills (hlm. 277–299). IGI Global; Scopus. https://doi.org/10.4018/979-8-3693-5673-9.ch012
Tatikonda, R., Kempanna, M., Thatikonda, R., Bhuvanesh, A., Thota, R., & Keerthanadevi, R. (2025). Chatbot and its Impact on the Retail Industry. Int. Conf. Intell. Data Commun. Technol. Internet Things, IDCIoT, 2084–2089. Scopus. https://doi.org/10.1109/IDCIOT64235.2025.10915098
Tejomurti, K., Santoso, B., & Widiyanti, H. N. (2024). Big Data Analytics Algorithms for Dynamic Pricing: The Legal Analysis of the Indonesia Competitions Law readiness in Digital Era. Jurnal IUS Kajian Hukum Dan Keadilan, 12(1), 68–90. Scopus. https://doi.org/10.29303/ius.v12i1.1303
Thapliyal, S., & Bindal, R. (2025). Leveraging AI for personalized customer experiences. Dalam Strateg. Brand Manag. In the Age of AI and Disrupt. (hlm. 303–324). IGI Global; Scopus. https://doi.org/10.4018/979-8-3693-9461-8.ch012
Timimi, H., Baaddi, M., & Bennouna, A. (2025). Impact of artificial intelligence on the personalization of the customer experience: A systematic literature review. Multidisciplinary Reviews, 8(7). Scopus. https://doi.org/10.31893/multirev.2025224
Vashishth, T. K., Kumar, V., Sharma, K. K., Kumar, B., Chaudhary, S., & Panwar, R. (2024). Boosting and Embracing Artificial Intelligence and Machine Learning for the Future of Digital Marketing. Dalam Synergy of AI and Fintech in the Digital Gig Economy (hlm. 217–243). CRC Press; Scopus. https://doi.org/10.1201/9781032720104-15
Vashishth, T. K., Kumar, V., Sharma, K. K., Kumar, B., Chaudhary, S., & Panwar, R. (2025). Boosting and Embracing Artificial Intelligence and Machine Learning for the Future of Digital Marketing. Dalam Synerg. Of AI and Fintech in the Digit. Gig Econ. (hlm. 201–227). CRC Press; Scopus. https://doi.org/10.1201/9781003621454-14
Vashishth, T. K., Sharma, V., Kumar, B., & Sharma, K. K. (2024). Cloud- Based Data Management for Behavior Analytics in Business and Finance Sectors. Dalam Data- Driven Modelling and Predictive Analytics in Bus. And Finance: Concepts, Designs, Technologies, and Applications (hlm. 133–155). CRC Press; Scopus. https://doi.org/10.1201/9781032618845-9
Vetrivel, S. C., Mohanasundaram, T., Saravanan, T. P., & Maheswari, R. (2024). Impact of AI Adoption in Current Trends of the Financial Industry. Dalam Artificial Intelligence for Risk Mitig. In the Financial Industry (hlm. 103–131). wiley; Scopus. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85199836736&partnerID=40&md5=2bd11dc7f0de87f9295e3a29e3c1097c
Authors
Copyright (c) 2025 Atkhmad Fauzi Sayuti, Kiran Iqbal, Zainab Ali

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.