Many retailers still are determining how to best provide personalized messages, offers and product recommendations without invading privacy or risking customer trust. However, research commissioned by Infosys has verified that consumers are more willing and eager to share personal data in exchange for customized offers.
To better understand consumers’ overall desire for personalized brand experiences, Infosys polled 5,000 consumers in Australia, France, Germany, the UK and U.S. The report, titled: Engaging With Digital Consumers, revealed that 93% of respondents would provide retailers with detailed information if they received customized offers in return. Of all data points, consumers were most willing to share their email address (78%), zip code (64%), birth date (38%) and postal address (38%).
“While we have made a lot of progress, many retailers still are skeptical regarding the value of leveraging Big Data to create personalized offers,” said Kishor Gummaraju, AVP and Head of Business Insights for the Retail and CPG division of Infosys. “Many retailers also are considering issues of privacy and whether consumers are actually seeking these personalized offers and are willing to exchange them for information.”
Although privacy has been spotlighted as a primary issue for retailers in their customization efforts, 56% of consumers said they usually or always share some form of personal data while shopping online. Similarly, 40% said they share some form of information while shopping in a brick-and-mortar store.
Yet there is a clear disconnect between consumers’ desire for tailored offers and retailers’ ability to address these wants and needs. As many as 78% of consumers said they would buy from a retailer more frequently if they received offers tailored to their interests, wants and needs. In addition, 71% of respondents said they would favor retailers providing deals and incentives tailored to their location.
Although the study has confirmed consumers are seeking more targeted promotions, Gummaraju noted that 71% of respondents said they don’t believe retailers are effectively taking advantage of this opportunity.
“It’s loud and clear that consumers are asking for location-specific, targeted promotions and offers based on their wants and needs,” Gummaraju said. “Shoppers are willing to share information as long as they get value and a benefit out of it.”
In fact, 43% of consumers said they would not mind if their smartphone or tablet location was monitored, as long as they received targeted offers that aligned with their geographic location.
“This study is a wake-up call to companies about the enormous untapped opportunity to gain greater access to data by clearly communicating ‘what’s in it for me’ to the customer,” added Stephen Pratt, Managing Partner, Worldwide Consulting and Systems Integration and Executive Council Member at Infosys. “Our research shows that people will certainly share though they’re very savvy about how they give up their personal information. Companies need to crack the code in mining data effectively to gain consumer trust and clearly articulate the benefit to their customers.”
Click here to access the complete version of the Infosys study.