Study: Consumers want personalization, but most companies not on board

Customers know what prompts them to make purchases, but the companies doing the selling may not be aware.



A global, cross-industry study released by technology services provider Mindtree, “Winning in the Age of Personalization,” shows that 78% of consumers indicate that personalized promotions encourage them to buy products and services they have purchased before. Almost as many (74%) say personalized promotions encourage them buy relevant products and services they have never purchased.



However, only 28% of the decision-makers from companies surveyed globally say their organizations are investing significantly in personalization to improve the online purchasing experience, even though it has improved their online sales over the past 12 months for the majority (58%).



The survey also highlights some notable disconnects between what online features consumers desire and what features companies are investing in. For example, consumers crave improved search and compare/aggregate functions, but companies are investing more in features like shopping lists, wish lists and social features.



In other study findings, consumers expect their use of mobile apps for shopping to more than double in the next three years. While 6% of consumers said their preferred channel for making retail purchases as of 2015 was mobile apps, 15% said they expected mobile apps to be their preferred channel by 2018.



The study was commissioned by Mindtree and conducted by independent market research firm Vanson Bourne. It surveyed 6,000 consumers across three primary regions (U.S., Europe, and Asia/Pacific), as well as 900 decision-makers from companies spanning the retail and consumer goods, travel and hospitality, banking and insurance, and media and entertainment industries.