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16 Sep, 2020

70% of Consumers say They Will Exclusively Shop with Brands that “Personally Understand Them” this Holiday Season

This media release is a clear indication of the extent to which technology can be used (or misused) to influence decision-making. This sentence says it all: “The retailers that use real-time data to understand individual consumer preferences, make changes the data shows are needed, and effectively leverage multiple channels will be much more successful in securing consumer spend this holiday season.” If retailers have access to such data, so do dozens of other companies — and governments! Which raises serious questions about privacy, democracy, transparency, accountability and the right to live without interference and manipulation. The full release is reproduced below. Read it and make up your own mind.

WELLESLEY HILLS, Mass., 15 September 2020, BUSINESS WIRE – Redpoint Global, a leading software provider that helps brands deliver revenue-generating and personalized customer experiences, today announced new research revealing consumer opinions about the upcoming holiday season. Conducted by Dynata, the survey of more than 1,000 U.S. consumers finds that major changes in shopping are already under way, with 62 percent saying they would shop exclusively online this year.

“The commerce habits of virtually every consumer were dramatically changed in 2020,” said John Nash, Chief Marketing and Strategy Officer at Redpoint Global. “For the holiday season, these shopping trends will continue to transform the shopping experience and it is imperative brands adapt. The retailers that use real-time data to understand individual consumer preferences, make changes the data shows are needed, and effectively leverage multiple channels will be much more successful in securing consumer spend this holiday season.”

Shoppers are going increasingly digital and their expectations around personalization are also increasing. Personalization motivates purchases with nearly half (49 percent) saying they will be more likely to purchase from retailers who send personalized content and/or offers this holiday season. Receipt of irrelevant offers is for the second year in this survey, a top consumer frustration. Today’s consumer sees being understood by a brand as table stakes. In the survey, 82 percent of respondents expect that retailers will be able to accommodate preferences and expectations.

Brands that can get personalization right will be rewarded, with consumers highly likely (70 percent) to purchase exclusively from brands that show they understand them. Two thirds of respondents say they want retailers to make the personalization consistent and frictionless, no matter the channel. They want the same understanding from a company whether shopping on a website, in-store, via a mobile app, or reaching a call center.

Additional insights from the survey that retailers should make note of include:

  • Omnichannel approaches are key – While e-commerce will be crucial for holiday shopping, retailers should ensure they bridge the gap between physical and digital channels as 50 percent of respondents plan to take advantage of buy online, pick up in-store (BOPIS) capabilities.
  • Consumer pockets will not be as deep– More than half (56 percent) of consumers expect to spend the same this holiday shopping season as last, but with uncertain markets and high unemployment, 27 percent say they will spend less. For retailers, this means the competition to stand out and win over shoppers will be even more crucial.
  • Moderation is critical – 39 percent of consumers say they get overwhelmed by marketing from retailers during the holidays, so striking the right balance of personalized communication at the cadence the customer prefers is as important as what the marketing materials say.
  • Maintain supply chain transparency– Keeping stocked shelves digitally and physically is important. Out of stock items remains a point of friction for many consumers during the holiday season, 36 percent rating it as a top frustration. Transparency in communication around delays is a major factor in managing customer expectations.