Press Releases
MyBuys and the e-tailing group Uncover the Gap Between Consumer Demand for Personalization and Current Merchant Methodologies
Study Reveals that 77% of Online Shoppers Make Additional Purchases when Captivated by Personalized Product Recommendations
Redwood City, CA.—June 5, 2008—MyBuys, the leading provider of personalized product recommendations, unveiled the results of an e-tailing group study in a white paper titled, “The Executive Guide to Captivating Customers.” This in-depth research addresses the gap between consumer demand for a personalized experience online, and how merchants are addressing those demands, resulting in missed opportunities for increased sales. The data was collected by surveying 1,345 online consumers, as well as conducting one-on-one interviews with twenty-four merchants.
Data collected during the study reveals that a significant percentage of consumers not only welcome personalization, but expect online merchants to provide personalized experiences and product recommendations based on their shopping behavior.
- 77% of consumers report that they have made additional purchases when they have encountered personalized product recommendations online. More than half of consumers say they usually peruse those recommendations when they are offered.
- 75% of consumers are willing to provide some meaningful amount of personal information in exchange for a more personalized, relevant shopping experience.
- More than one third of consumers (36%) indicate they award more loyalty to merchants who effectively meet their demand for true personalization in the shopping experience.
- Currently only 2% of the consumers surveyed reported feeling that products suggested to them online are tailored for them based on their individual purchases and behaviors.
“Our research shows that consumers value the convenience, time savings and ease they get from a more relevant interaction with a merchant,” said Lauren Freedman, president, the e-tailing group. “The growth of e-tailing over the past decade has created an entirely new set of expectations on the part of consumers around the level of personalization in their shopping experience. Merchants must examine their in-house methodologies and look to adopt the right technology and business strategies to meet those consumer demands while driving incremental sales.”
“We commissioned this study to validate our belief that consumers want to be captivated with a personalized online shopping experience. This study confirms that the market is ready to implement personalization.” said Lisa Joy Rosner, vice president marketing, MyBuys. “Merchants who embrace personalized product recommendations can increase average order value, bottom-line revenue and improve customer loyalty. This trend is underscored by the strong results MyBuys’ clients across many categories are already recognizing.”
While merchants almost universally recognize the demand for personalization by consumers, the study reveals that most have not made the technology investments necessary to create effective personalized product recommendations. According to one-on-one interviews with two dozen merchants:
- Personalization is only an upcoming initiative for 41% of merchants.
- More than a third of merchants say they simply lack the resources to make personalization a higher priority.
- 79% of merchants who do attempt to personalize the online experience still rely on manual, hard-coded methods for providing additional product recommendations to online shoppers.
Looking at the consumer and merchant results in combination, the e-tailing group has authored “The Executive Guide to Captivating Customers.” This new white paper offers ten recommendations for how merchants can capitalize on personalized product recommendation technology, including focusing attention on the role of email in extending the personalization experience. To download a copy of the complete white paper, please visit: www.mybuys.com/captivated
About MyBuys
MyBuys is the leading provider of personalized product recommendations for online retailers. The company builds deep profiles based on each individual shopper’s behavior, then uses a patented portfolio of algorithms and real-time optimization to deliver the most relevant recommendations. MyBuys’ clients are increasing average order value by 30%, improving conversion rates by 82%, and multiplying the lifetime value of every customer. Premier retailers—including Lancôme, SKECHERS, Golf Galaxy and Karmaloop—partner with MyBuys to offer intelligent, personalized recommendations to their shoppers. Based in Redwood City, Calif., MyBuys is a privately held company. www.MyBuys.com
Media Inquiries
Emily Borders
Borders + Gratehouse
415.963.4174
emily@bordersgratehouse.com