Companies Lose Customers During Online Holiday Promotions Because They Aren’t Collecting Preference Data

Dec 13, 2018

Industry observers expect online sales this holiday season to rise 22% according to Deloitte. This compares to 5% last year, where online holiday sales totaled $1.05 trillion. Many will miss out on this slice of the retail pie if they don’t listen to their customers’ preferences for receiving e-mail marketing and other communications.

A recent survey from PossibleNOW, a provider of enterprise consent and preference management solutions, uncovered that as many as 36% of businesses are not actively collecting customer preference data. Additionally, another 31% aren’t sure if they’re collecting this data.

Preference management for customers is extremely valuable since it provides a company the ability to respect customers’ needs and wants, increase marketing ROI, and comply with a growing number of regulations, such as GDPR and CCPA. Preference management platforms help customers indicate information they want to receive, how often they want to receive communications from an organization, and through which marketing channels, such as text, email, and phone.

Of the 36% of companies that say they are not collecting preference management data, 33% say they do not know enough about it. Furthermore, 21% of these companies say at least half their customer base is frustrated as a result.

Forty-one percent of respondents said they do not share preference data across all departments and divisions, and 40% said they do not maintain historical preference records. This means customers of large companies aren’t having their preferences honored if they’re receiving emails from different groups within the same company. Worse, these companies aren’t tracking the evolution of their customers’ change in preferences, which is problematic if they have a regulatory inquiry.

For those companies that are actively collecting preference data, many are still in the development stages with systems that aren’t fully matured. Forty-seven percent (nearly half) said their systems are in early stages, planning phases or initial deployment.

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