Survey: Retailers should make holiday shopping personal
Consumers are open to several different personalization techniques for their holiday shopping, according to a new survey.
The survey of 4,000 U.S. and U.K. consumers from enterprise search platform provider Coveo, “2022 Holiday Shopping Report: Habits, Trends and Motivators,” indicates that slightly more than half (51.2%) of respondents prefer tailored offers (51.2%). Another 46.5% like top reviews and best seller notifications, while 34.3% use product recommendations (34.3%) and a little more than one in five (22.2%) are interested in virtual try-on tools that guide fit, style, color, and sizing options for online shoppers (22.2%).
One key specific motivator for Gen Z (ages 18-24) respondents proved to be whether a brand’s mission aligns with their values, especially when it comes to sustainability.
Other notable survey findings include:
● Fashion/apparel is the most popular e-commerce segment: Shopping for consumer electronics and groceries round out the top three most popular online retail categories. One in two surveyed consumers in the U.S. and U.K. (50%) said they plan to buy fashion/apparel online.
● Gen Zers are more likely to shop with luxury brands online: While 15% of respondents overall said they want to shop for luxury products online, 28% of Gen Z (aged 18-24) respondents said they will purchase luxury goods online.
● Visitors bounce because of poor experience: Close to seven in 10 (68%) respondents won’t make a purchase if they can’t find the products they’re looking for, while 51% will leave a brand’s site due to poor website navigation. A limited number of product reviews, or none at all, will lead 36% visitors to abandon the online store, while 32% of respondents said the same for a poor mobile shopping experience.
● Three key reasons for returns: According to 55% of respondents, the top two reasons for returns are ill-fitting clothing and products not looking the same as they did online, while 46% said that poor quality prompted the return.
● Sustainable product offerings drive conversions: Gen Z (64%) and millennial (57%) respondents are most interested in sustainable products. Sustainability also plays a role in holiday shopping decisions for more than half (52%) of all respondents.
“Our survey indicates that consumers now expect hyper-personalization and true one-to-one personalization at scale, which is a necessity for brands to win,” said Brian McGlynn, GM of commerce at Coveo. “We believe brands must provide tailored offers, product reviews, and personalized recommendations that interact with the instantaneous intent of the shopper. Combining these strategies will enable retailers to guide shoppers to the products they really want, reducing the potential for returns, which continues to plague retailers and threatens their profitability by cutting into profit margins.”
ICSC: Consumers want holiday deals
Consumers increasingly anticipate retailers will offer early holiday deals and promotions, as 73% of shoppers recently surveyed by ICSC expect retailers to begin offering “Black-Friday-like” deals earlier in the fall. Sixty-five percent intend to spend significantly more time looking for promotions, and 60% are willing to buy excess inventory to get a deal.
To download the Coveo survey click here.