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A new report reveals that 65% of consumers say companies, retailers, or brands send them too many irrelevant communications.
Further, the research shows that consumers are more likely to shop with a brand if it communicates to them on a more personal level: 87% of millennials aged 25-34 are very likely to shop at a retailer if they receive personalised offers.
The 2017 Holiday Retail Outlook Report, released by Alliance Data’s card services business, Epsilon, Conversant and LoyaltyOne, looks upon trends during recent winter seasons in order to impart valuable insight on how retailers can maximise ROI during the upcoming 2017 winter holiday period.
For the upcoming winter holiday shopping period, the report highlights the value of personalisation in communication over heavy discounting. "Deep discounting has traditionally been the go-to strategy for retailers, but this doesn’t have to be the only solution to drive consumers to buy,” the report states. "Focusing on personalisation and technology in stores will cut through the crowded retail market.”
"Consumers have had enough of the irrelevant mass communications that retailers throw at them. It is time for retailers to start now with personalised promotions to convince consumers to shop their brand over another retailer that sells similar items."
The report further confirms the ongoing trend of consumer purchasing behaviour being spread across channels: 80% of consumers now buy online and have gifts delivered, 51% buy online and pick up in store, 75% price compare products online, while 51% read product reviews while in store.
As a result, the report advises retail brands not to “underestimate continuity of voice.”
"Digital marketing allows you to keep up an ongoing conversation with your customers across their devices, rather than simply serving up the same ads over and over again."
For example, US retail brand "The Land Of Nod focused its digital advertising efforts on individual consumers, using data to serve up highly personalised messaging across multiple devices." In the UK, luxury fashion brand Dune London employs the same personalised approach to marketing, which earned the brand a 64% increase in ROI per customer.
The report further highlights the diverging shopping habits between generations.
Price and value are top influencers for millennials. But they also recognize the importance of both functional and emotional aspects of the shopping experience; both are represented in where and how they decide to shop.
Generation X wants to see clear value for the money they spend — and they expect innovation that will make their busy lives easier, according to the report. Meanwhile, baby boomers and the silent generation place a greater importance on the functional attributes offered when they’re deciding which brands to shop.
Finally, generation Z cares greatly about quality and value. And while they’ll only contribute a small amount of their own money to this year’s holiday spend, you can be sure they’re heavily influencing it.
Download the full report for free to gain access to this valuable data and insight in the run-up to the 2017 winter holiday period.
