Personalization has become an essential strategy for businesses aiming to engage customers uniquely, yet many face significant challenges in implementing it effectively. A survey by Gartner found that 63% of digital marketing leaders struggle with personalization, primarily due to issues such as data management, privacy regulations, talent and organizational alignment, real-time and omnichannel delivery, technology selection, measurement, scalability, and the difficulty of initial implementation. Businesses must navigate vast amounts of customer data, ensuring its quality and relevance while adhering to privacy regulations to maintain customer trust. Moreover, achieving effective segmentation, fostering interdepartmental collaboration, and integrating appropriate technology are crucial for delivering personalized experiences. Challenges like real-time personalization and omnichannel delivery often arise from a lack of organizational alignment and data synchronization. To overcome these obstacles, companies should leverage AI for scalability, carefully measure personalization efforts, and focus on building a strong foundation in customer data and segmentation while continuously experimenting to refine their strategies.