Shoppers Are Way More Interested in Personalized Discounts Than Recommendations

As consumers seek more individualized shopping experiences, PYMNTS Intelligence research finds that there is far greater demand for targeted promotions than for personalized recommendations without financial incentives.

By the Numbers

The PYMNTS Intelligence report, “Personalized Offers Are Powerful — but Too Often Off-Base,” created in collaboration with AWS, is based on a survey of over 2,500 U.S. consumers that digs into their preferences around personalized offers.

The results revealed that nearly half of all consumers list discounts and promotions as their most-sought personalized offers, followed by free shipping, which is especially in demand among lower-income shoppers. In contrast, only 5% of consumers who make more than $100,000 a year, and even fewer in lower income brackets, said that their most-desired personalized offer was product recommendations based on previous purchases.

The Data in Context

This disparity comes as consumers look to digital platforms to alleviate their financial burdens amid ongoing budgetary pressures.

“Across all income segments, consumers who say they are living paycheck to paycheck with issues paying their bills are more digitally engaged than those who are not,” PYMNTS CEO Karen Webster observed in a feature on Friday (June 21). “It may be that these consumers rely more on their mobile devices and apps to find deals, compare prices, check their balances and scan sites for coupons to redeem at checkout to save money.”

Merchants, for their part, are noting demand for these kinds of offers.

“The future of marketing in this country and around the world will be personalized,” Victoria’s Secret CEO Martin Waters said an earnings call this month.

Kroger, the United States’ leading pure-play grocer, is similarly seeing demand for individualized offers.

“Personalization enables us to balance the depth and breadth of our promotions more effectively and encourages customers to engage more with us by focusing on promotions that matter most to them; this led to an 18% increase in digital coupon clips compared to last year,” CEO Rodney McMullen told analysts on a call June 20.

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