Companies aren’t investing in Personalization: Mindtree Study

Only 28 percent of the decision makers from companies surveyed globally say their organizations are investing significantly in personalization to improve the online purchasing experience, even though it has improved their online sales over the past 12 months for the majority (58 percent).

A global, cross-industry study released today by Mindtree, a leading digital transformation and technology services company, pinpoints personalization as the key driver that will help “phy-gital” consumers reach their ideal mix of online and offline shopping. It also reveals that while most companies are in transformation mode and consider themselves pioneers in adopting or investing in digital technologies, few are investing in personalization initiatives that consumers say will increase the depth and breadth of their shopping experience.

Key findings from the survey include:

Consumers indicate that personalized promotions encourage them to buy products and services they have purchased before (78 percent), as well as relevant products and services they have never purchased (74 percent).

Only 28 percent of the decision makers from companies surveyed globally say their organizations are investing significantly in personalization to improve the online purchasing experience, even though it has improved their online sales over the past 12 months for the majority (58 percent).

Consumers expect their use of mobile apps for shopping to more than double in the next three years. While 6 percent of consumers said their preferred channel for making retail purchases as of 2015 was mobile apps, 15 percent said they expected mobile apps to be their preferred channel by 2018.

The study, “Winning in the Age of Personalization,” was commissioned by Mindtree and conducted by independent market research firm Vanson Bourne. It surveyed 6,000 consumers across three primary regions (U.S., Europe, and Asia/Pacific), as well as 900 decision-makers from companies spanning the retail and consumer goods, travel and hospitality, banking and insurance, and media and entertainment industries.

The survey also highlights some notable disconnects between what online features consumers desire and what features companies are investing in. As an example, consumers crave improved search and compare/aggregate functions, but companies are investing more in features like shopping lists, wish lists and social features. The survey results also reveal the top reasons that customers abandon online shopping carts, and what drives customers to read and post online reviews (positive or negative).

“There are a lot of stories to be gleaned from this study, but what stands out most is that companies need to prioritize more investments in personalization, an area that quite clearly drives more commerce,” says Radha R., EVP and Head of Digital Business at Mindtree. “Many of today’s personalization approaches are ineffective since they are based on a siloed view of the customer. With the right data engine and digital underpinnings in place, customized experiences will allow companies to target the right people, at the right time, in the right place, on the right device, with the right content.”