Key Insights

The role of personalisation

Personalisation pays,
on several levels

Adobe, which commissioned research by Forrester, found that the payoff for personalisation is overperformance in key customer success metrics for 4 in 5 experience leaders. Respondents reported that their personalisation initiatives have exceeded targets and expectations for revenue (68%), customer experience measures (67%) and conversion rates (67%). The same research also revealed that 73% of consumers and 87% of business customers expect to be delighted both before and after purchase in their buying journeys. In terms of next steps, Adobe recommends that companies orchestrate experiences along a customer’s entire journey.

Consumers expect personal treatment

Research from McKinsey and Company showed that 71% of consumers expect companies to deliver personalised interactions, and 76% are frustrated without it. McKinsey follows this statistic with strong reasons to meet these needs, namely that it enables retailers to “reduce customer acquisition costs by as much as 50%, lift revenues by 5-15% and increase marketing ROI by 10-30%.”

Personalisation increases
satisfaction

Twilio Segment found that 52% of consumers agree that their satisfaction increases as digital experiences with brands grow more personalised. Over three-quarters (77%) of consumers prefer brands offering personalised data-based experiences, and 75% prefer it when retailers use personal data to enhance their shopping experiences.

The voice of the customer

Original research of over 1,000 UK adults, conducted on behalf of Scurri by Savanta in January 2023, demonstrates both the challenges and the opportunities in personalising across the customer journey.

Tipped by many to be a major trend for 2023, a year later the call for greater personalisation still goes out.

I’ll buy on a recommendation

More than a third of respondents (34%) say they have purchased an item that was personally recommended to them by a retailer (based on 42% of men vs 27% of women). However, inclination to buy on a recommendation rises to 57% of Millennials and 49% of Gen Z.

I won’t buy on a recommendation

54% of consumers say they haven’t purchased an item that was personally recommended by a retailer (based on 59% of women vs 48% of men). Older demographics are even less likely to buy on a retailer recommendation (61% of Gen X, 65% of Baby Boomers.)

Consumers react in different ways to personalisation

Our research shows clearly that some consumers resist a personalised approach for a number of reasons, including data privacy, fear of just being sold old products, or worries that recommendations are not accurate.

Have you ever purchased an item based on a recommendation from a retailer?

Yes, for sure!
I don't know, but potentially.
No, I'm sure that I haven't.

60%

say they don’t want personalised product recommendations – they know what they want and will just search for those items.

54%

say personalised product recommendations just re-serve products they have previously searched for

51%

say personalised product recommendations scare them as they show how much personal data retailers store and use

50%

of respondents have been served wildly inaccurate product recommendations

Control the eCommerce delivery process with Scurri

However, many consumers welcome personalisation, which is the clearest indication yet that retailers and brands must invest in understanding exactly who their best customers are so they can retarget the most active and loyal. Blanket ‘me-too’ or ‘batch and blast’ personalisation is going to be ineffective and expensive. True personalisation means impressing consumers with the products that are deemed relevant and served up to overcome current preconceptions. The response brands are looking for is, “wow I really like that product and it is exactly what I want”.

A word of caution here - a lack of breadth in product range or availability issues can blunt these expectations, so the promise made up front must be balanced with the back end, and that depends on greater collaboration by brands with their supply chain and relevant partners.

Blanket ‘me-too’ or ‘batch and blast’ personalisation is going to be ineffective and expensive.

48%

say personalised product recommendations show that a brand or retailer knows what the customer likes.

45%

say online personalised product recommendations provide inspiration in their shopping journeys

44%

say that when they visit a website as a repeat customer, they expect a personalised experience

43%

have found a product or brand online which they have repeatedly purchased from a personalised product recommendation