Creepy Or Convenient? Digitally Savvy Australians Willing To Share Personal Data For Relevant Offers, Says Infosys Digital Consumer Study

Are today’s targeted retail promotions creepy and unwelcome, or worth the trade-off of personal data for better, more relevant deals?

The answers from Australian consumers may surprise some retailers, according to an independent study commissioned by Infosys, a global leader in business consulting and technology solutions.

About half (51 percent) of Australia’s digitally savvy shoppers say they are willing to have their online or mobile behaviour shared with retailers in exchange for targeted promotions, and a whopping 83 percent revealed they would be more likely to purchase again from a retailer that provided them with tailored promotional offers.

However, retailers appear to be missing this digital opportunity. Most consumers said current ads and promotions don’t speak to them, with ads received on mobile devices (77 percent), online (74 percent) and email (71 percent) deemed the least relevant.

The global research polled 5,000 digitally savvy consumers in five countries (including 1,000 in Australia) about how they trade personal data in the retail, banking, and healthcare sectors. The study shows the key challenge facing business is to navigate the complex behaviours consumers display when sharing their personal data.

Key Australian findings

• Big data targeting breeds consumer loyalty: 83 percent of online shoppers said they’d be motivated to make repeat purchases if they received offers tailored to their interests. 78 percent would make a repeat purchase if they received offers targeted to their location
• Social media helps too: 68 percent would shop with a retailer again based on social media interactions, whether with friends, family, fans, or with the retailer itself
• What data will shoppers share: Though consumers are willing to share email addresses (81 percent) and postcodes (67 percent) in exchange for more customised experiences or offers, there is a big drop after that. Less than a third (32 percent) would share a date of birth, and only 9 percent would divulge their income (9 percent)
• Catch-22 for retailers? While in principle shoppers say they want to receive ads or promotions targeted to their interests, only 30 percent are actually willing to reveal vital information such as their use of smart devices, and just 14 percent are willing to share social media profile information. Lacking these details could make it difficult for retailers to deliver tailored digital offers
• Consumers value online customer service: 82 percent would be more likely to purchase from a retailer again if the retailer helps them resolve customer service issues online, for example, through an online form, email, or a chat program
• Does it fit? Australians were the least likely shoppers to feel comfortable purchasing clothing, shoes or jewellery online (57 percent of Australians and only 45 percent of Australian women aged 50 – 69, compared to an average of 70 percent for shoppers in the US and Europe)
• Reviews important to young shoppers: Reviews and ratings from other consumers are of particular appeal to 18 – 29 year olds, with 83 percent of young shoppers indicating this would motivate them to make a repeat purchase
• Shoppers are ‘app’ happy: 62 percent are more likely to make a purchase from a retailer again if it has a mobile application that’s easy to use (this rises to 70 percent among 18 – 29 year olds)

Quote

Sumit Madan, Retail Client Manager, Infosys:
“Australians are clearly willing to trade some useful personal information with retailers if they can extract real value. There’s a data line shoppers are willing to cross, and smart retailers must figure out how to persuade them to cross it to leverage the wave of opportunity that the online shopping revolution and big data presents.”

Engaging the digital consumer – research methodology
This comprehensive global research project studied consumer sentiment on big data issues in the retail, financial services, and health care industries in the United States, United Kingdom, France, Germany and Australia. The study polled 1,000 consumers in each country via an online survey for a total global sample of 5,000 adults aged 18 – 69. Independent research firms KRC and Vanson Bourne conducted the study; KRC surveyed the United States between May 3 – 7, 2013 and Vanson Bourne surveyed the remaining countries between May 8 – 22, 2013. To qualify for the survey, respondents had to be active Internet users and indicate that they have made an online purchase during the previous six weeks. The majority of respondents also had to indicate they owned a smartphone or tablet computer.

About Infosys

Infosys is a global leader in business consulting and technology solutions. As a proven partner focused on building tomorrow’s enterprise, Infosys enables clients in more than 30 countries to outperform the competition and stay ahead of the innovation curve.

Ranked in the top tier of Forbes’ 100 most innovative companies, Infosys—with $7.4B in annual revenues and 150,000+ employees—provides enterprises with strategic insights on what lies ahead. We help enterprises transform and thrive in a changing world through strategic consulting, operational leadership and the co-creation of breakthrough solutions, including those in mobility, sustainability, big data and cloud computing.

Visit www.infosys.com to see how Infosys (NYSE: INFY) is Building Tomorrow's Enterprise® today.

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