FROM DATA TO PERSONALIZATION: DATA-DRIVE MARKETING IN THE DIGITAL ERA - A LITERATURE REVIEW OF OPPORTUNITIES, CHALLENGES AND CUSTOMER OUTCOMES

Data-driven marketing (DDM) has grown in importance as a means of enhancing customer comprehension, customisation, and strategic decision-making in the digital age. This review looks at how DDM affects consumer outcomes and perceptions, namely customer experience, satisfaction, and retention. Main research streams are identified by the study based on a systematic review of the literature: marketing analytics, data-driven personalization; customer relationship and experience; satisfaction, customer retention and privacy, ethics. According to the results, DDM adds value when businesses successfully transform consumer data into pertinent and useful insights. While excessive or unclear data use may raise privacy issues and reduce customer trust, personalization can improve customer relevance, utility, and experience. Therefore, the research emphasizes consumer perception and data-driven customisation as key processes connecting DDM with customer retention. The paper indicates future research opportunities, especially in emerging-market and Indian contexts.