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)
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.
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.
www.infosys.com to see how Infosys (NYSE: INFY) is Building Tomorrow's Enterprise® today.
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, fluctuations in foreign exchange rates, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, industry segment concentration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks or system failures, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Infosys has made strategic investments, withdrawal or expiration of governmental fiscal incentives, political instability and regional conflicts, legal restrictions on raising capital or acquiring companies outside India, and unauthorised use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2013 and on Form 6-K for the quarter ended June 30, 2012 September 30, 2012 and December 31, 2012.These filings are available at
www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company unless it is required by law.