Consumers Welcome Personalized Offerings but Businesses Are Struggling to Deliver, Finds Accenture Interactive Personalizatio...
October 13 2016 - 8:57AM
Business Wire
Almost 40% of online consumers have abandoned a
retailer’s website because of overwhelming choice of options
New research from Accenture Interactive indicates that offering
personalized experiences will translate to higher sales if
businesses remove unintended barriers consumers report. While most
consumers welcome personalized offerings, many complain of having
received irrelevant recommendations and experienced an overwhelming
choice of options when visiting brands and retailers’ websites.
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The Ups and Downs of Personalization
According to Accenture Interactive’s new Personalization Pulse
Check, a survey among more than 1,500 consumers aged 18 to 60
across the United States and United Kingdom, consumers have a
positive attitude towards personalized offerings and services. This
includes:
- Being recognized – more than one
in two consumers (56%) are more likely to shop at a retailer in
store or online that recognizes them by name.
- Being offered relevant
recommendations – three in five (58%) are more likely to make a
purchase when a retailer recommends options for them based on their
past purchases or preferences.
- Being remembered – two in three
(65%) are more likely to shop at a retailer in store or online that
knows their purchase history.
A full 75% of consumers are more likely to buy from retailers
that provide any of these three services.
Despite their openness to personalization, many consumers are
disappointed with the experiences they receive, such as:
- A glut of options – two in five
(39%) have left a business’ website and made a purchase elsewhere,
because they were overwhelmed by too many options.
- Irrelevant recommendations –
just one in two (50%) reported ever making a purchase recommended
to them on a retailer’s website.
“Brands today have a responsibility to make it easy for
customers to engage, buy and consume what they want, how and when
they want,” said Jeriad Zoghby, global personalization lead at
Accenture Interactive. “The availability of data and digital
technology today allows for a deeper level of personalization
needed to dynamically curate experiences to each individual and
context, across marketing, shopping, and services interactions. Yet
many brands are still grappling with delivering upon customers’
desire for more personalized experiences. They create unintended
barriers, for example, when onsite search delivers irrelevant
results or landing pages don’t match known customer intent or
profiles. In an era when your brand is the experience, it’s
imperative that retailers deliver the ultimate user-friendly and
tailored experiences or risk sacrificing sales and loyalty.”
Most Companies Are Still Experimenting with
Personalization
According to Zoghby, many customers are finding personalized
experiences lacking because most companies are still in the
experimental stages. Based on his market observations, the vast
majority of businesses are in stages 1 and 2 of a 5-stage
personalization maturity model, meaning they practice
personalization minimally or selectively and base their campaigns
and experiences on expert judgment, simplistic business rules and
simple testing of web page or email experiences to see which one
performs better (A/B testing).
“The next stage is managed personalization, where companies
transition to an operating model in a similar fashion to what
they’ve created for content management or ecommerce operations,”
Zoghby said. “It includes having dedicated teams and well-defined
processes and governance to ensure that personalization is applied
consistently across all customer experiences.”
According to the survey, video streaming is among the more
sophisticated industries regarding personalization. It demonstrates
particularly high rate of customer satisfaction when it comes to
the use of personal data for a better personalized experience. Two
in three respondents (66%) reported services, such as Netflix and
Hulu, use their data to recommend products and videos they might
like.
Consumers Expect Transparency and Control of their
Data
More than anything, personalization depends on data. The survey
found that 70% of consumers are generally comfortable with
retailers, news sites, streaming services and service providers
collecting personal data if they are transparent about how they use
it. Three in four (75%) are generally comfortable with companies
collecting personal data if they can control how it is used. Four
in five (80%) are comfortable with their data being collected if a
company offers either of these two options.
About Accenture
Accenture (NYSE:ACN) is a leading global professional services
company, providing a broad range of services and solutions in
strategy, consulting, digital, technology and operations. Combining
unmatched experience and specialized skills across more than 40
industries and all business functions – underpinned by the world’s
largest delivery network – Accenture works at the intersection of
business and technology to help clients improve their performance
and create sustainable value for their stakeholders. With
approximately 384,000 people serving clients in more than 120
countries, Accenture drives innovation to improve the way the world
works and lives. Visit us at www.accenture.com.
Accenture Interactive, part of Accenture Digital, helps the
world’s leading brands drive superior marketing performance across
the full multichannel customer experience. Accenture Interactive
offers integrated, industrialized and industry-driven digital
transformation and marketing solutions. It was recently named by Ad
Age as the world’s largest and fastest-growing digital agency. To
learn more follow us @Accenture Social and
visit www.accenture.com/interactive.
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AccentureJens R. Derksen, + 49 175 57
61393jens.derksen@accenture.com
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