The increasing demand for personalized interactions with large language models (LLMs) calls for the development of methodologies capable of accurately and efficiently identifying user opinions and preferences. Retrieval augmentation emerges as an effective strategy, as it can accommodate a vast number of users without the costs from fine-tuning. Existing research, however, has largely focused on enhancing the retrieval stage and devoted limited exploration toward optimizing the representation of the database, a crucial aspect for tasks such as personalization. In this work, we examine the problem from a novel angle, focusing on how data can be better represented for more efficient retrieval in the context of LLM customization. To tackle this challenge, we introduce Persona-DB, a simple yet effective framework consisting of a hierarchical construction process to improve generalization across task contexts and collaborative refinement to effectively bridge knowledge gaps among users. In the task of response forecasting, Persona-DB demonstrates superior efficiency in maintaining accuracy with a significantly reduced retrieval size, a critical advantage in scenarios with extensive histories or limited context windows. Our experiments also indicate a marked improvement of over 15% under cold-start scenarios, when users have extremely sparse data. Furthermore, our analysis reveals the increasing importance of collaborative knowledge as the retrieval capacity expands.