Study Says Companies Aren't Investing in Personalization as They Should

Feb 16, 2016

A global, cross-industry study released by Mindtree, a digital transformation and technology services company, pinpoints personalization as the key driver that will help "phy-gital" consumers reach their ideal mix of online and offline shopping. It also reveals that while most companies are in transformation mode and consider themselves pioneers in adopting or investing in digital technologies, few are investing in personalization initiatives that consumers say will increase the depth and breadth of their shopping experience.

According to the survey, consumers indicate that personalized promotions encourage them to buy products and services they have purchased before (78%), as well as relevant products and services they have never purchased (74%). Only 28% percent 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%).

Meanwhile, 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, "Winning in the Age of Personalization," was commissioned by Mindtree and conducted by independent market research firm Vanson Bourne. It surveyed 6,000 consumers across the 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.

The survey also highlights some notable disconnects between what online features consumers desire and what features companies are investing in. As an example, consumers crave improved search and compare/aggregate functions, but companies are investing more in features like shopping lists, wish lists, and social features. The survey results also reveal the top reasons that customers abandon online shopping carts, and what drives customers to read and post online reviews (positive or negative).