Personalization will continue to be a hot-button investment item for retailers in 2019, but they will have to struggle with consumers’ cognitive dissonance to implement it effectively, according to Sucharita Kodali, VP and Principal Analyst at Forrester Research. Kodali spoke during the State of Retail Innovation 2019 session on Sunday, Jan. 13 at the NRF Big Show.
Up to 36% of shoppers say retailers need to do more to offer more personalized experiences, with this percentage reaching 43% for households that earn more than $100,000 annually, according to data from Forrester Research. Yet despite the evident desire for personalization, shoppers are still hesitant to share the personal information that can steer retailers in the right direction, and are overall distrustful of the concept.
“There’s a lot of tension in the personalization landscape, and that tension is what consumers want, what they expect and ultimately how retailers are able to deliver against them,” said Kodali, VP and Principal Analyst at Forrester. “A lot of consumers are very skeptical about the data that is being collected about them and how the data is being used.”
As many as 17% of consumers still aren’t willing to share data at all. More than half (52%) of shoppers still worry about retailers knowing too much about them, and that percentage jumps to 59% for higher-earning households. Similarly, 46% are uncomfortable with the amount of information that retailers can collect about them, while 53% of higher-earning households agree.
Consumers Prefer To Share Purchase Info, But Don’t Want To Get Too Personal
In fact, background on products they like is the only kind of data that more than 50% of shoppers were willing to share in order to receive more personalized discounts or offers, according to study from Forrester and…