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PERSONALISED SHOPPING
Retailers looking to stand out must provide personalised experiences
By our News Team | 2022
Study finds that 72% of shoppers who received personalised recommendations ended up purchasing more goods than they planned.
Retailers looking to attract consumers have to navigate an increasingly dynamic commerce landscape. Not only do retailers face increased competition for consumer spend now that inflation has reached new heights, today’s consumers also expect shopping experiences to be tailored to their individual needs.
Adobe Commerce recently surveyed 1,115 consumers from across the US to understand consumer sentiment about the economy and its impact on buying habits. Among other things, the insights revealed the importance of providing personalised shopping experiences, especially for retailers looking to stand out and build loyalty with consumers during this Northern Hemisphere summer shopping season.
Photo by Mart Production on Pexels
As the costs of goods and services continue to rise, consumers are less willing to spend money on discretionary items and are instead prioritising purchases of necessity, Adobe says.
But despite spending slowing down on ‘nice-to-have’ items, new insights show online spend is likely to grow this summer as 61% of consumers are looking forward to summer holiday sales.
Although consumers have started to return to in-store shopping in the US, spending online continues to see a modest increase, with the latest Adobe Digital Price Index (DPI) showing consumers spent US$78.8-billion online in May, over US$1-billion more than the prior month.
It’s also likely online shopping will continue to grow, given that a large percentage of consumers surveyed reported they shop online (93%), with 50% of Gen Z, 49% of Millennials, and 35% of Gen X doing most of their shopping that way.
Half of respondents want to buy using their phone
Online shopping accelerated during the pandemic as more people found they liked the convenience of shopping from anywhere, whenever they wanted. Half (50%) of respondents said they are now more likely to make retail purchases on their phones, a big jump from the 26% who prefer in-store shopping and 24% who prefer shopping via their computer or desktop.
Moreover, whether consumers are shopping in-store or online, they are looking for the best deals. Seventy-six percent of consumers report that they search for better prices online first and read reviews before they make a purchase in a store, with 60% making price comparisons at other retailers on their phone before purchasing products. The generations that do this the most are Gen Z (86%) and Millennials (77%).
“In our digital-first world, consumers are expecting — even demanding — that experiences are personalised to their own individual needs and interests,” Adobe states.
“This goes beyond just finding the best price. Consumers also want seamless shopping experiences that span the entire buying journey, across all channels, that cater to where they are and how they prefer to shop.
“Buyers expect brands to understand what they are looking for and B2C and B2B brands are looking to AI-driven product recommendations so they can suggest relevant products based on customer behaviour, product sales, visual elements, or popular trends.
“And rightfully so, as more than half (67%) of respondents say that, when shopping in-store or online, they would like to receive personalised promotions or offers based on their spending habits.”
According to Adobe, of those who have received personalised recommendations, 72% said this led them to purchase more goods than they originally planned.”
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