Shopping, up close and personalized
Every time shoppers purchase goods or services, there’s more data available about their personal preferences. In addition to building purchase histories, this data can also be used to predict – or even guide – future consumer behavior.
The helpful, “You may also like…” suggestions at the top of retail websites often introduce shoppers to products and services they may not have realized they needed, and retailers can mine past purchases to send coupons and offers that encourage shoppers to rebuy products or try new ones.
The application of this data raises the question of how much personalization is helpful and how much crosses the line of personal privacy. For this edition of ShopTalk, Vantiv teamed up with Socratic Technologies to ask 500 consumers about their comfort with personalization and how they use it. Here are the results.
Caring businesses? Or Big Brother?
Feelings are mixed. 53% of respondents are uncomfortable with companies tracking their purchase history. However, 51% believe it demonstrates that the company is interested in keeping their business.
Customers want control
Half of respondents indicate that personalized recommendations based on purchase history are acceptable as long as they have the option to opt in or opt out.
Millennials are more influenced by personalization
Millennials are significantly more influenced by personalization with 67% saying it positively influences their frequency of purchase with online retailers and 58% with grocery stores.
Online retailers are the most prolific users of personalized shopping recommendations based on purchase history
62% of respondents observe online retailers using this functionality.
Online retailers and grocery stores are the most persuasive
38% of consumers report that personal recommendations from online retailers and grocery stores would increase the frequency of their purchases, the highest percentage of all retail categories tested.