The Rise of Personalization in E-commerce: 2024 Consumer Insights by Wunderkind
Personalization has always been a buzzword in marketing, but not every brand does it the way consumers want. Wunderkind’s 2024 Consumer Insights Report is a survey of over 1,503 consumers across the United States and United Kingdom about several topics from personalization to online shopping habits, advertising and more. In this article, we’ll dive into what we found when we asked consumers about personalization. Follow these tips on personalization to significantly impact your brand’s success, enhance your customer relationships and increase revenue.
The Growing Demand for Personalization
One of the key takeaways from the report is that consumers overwhelmingly favor personalized experiences. Specifically, 83% of consumers are likely to purchase from a brand’s message that highlights the exact products they recently browsed for. This preference is particularly pronounced among middle-aged consumers (35-54 years old), with 87% indicating a strong likelihood of making a purchase when targeted with personalized content. Furthermore, affluent consumers, especially those in the $75K-$100K income bracket, show a 90% likelihood of engaging with personalized messages.
The Impact of Personalized Offers
Financial incentives, while still effective, are not the sole drivers of consumer engagement. The report reveals that a significant portion of consumers, particularly younger demographics, are motivated by non-monetary offers. For instance, 34% of consumers aged 18-24 value early access to new products, and 32% appreciate exclusive content. These preferences highlight a shift towards valuing unique experiences and access over traditional discounts.
In terms of financial incentives, the report notes that free shipping remains the most compelling offer to drive opt-ins for marketing communications, with 70% of consumers citing it as a key motivator. Loyalty points (50%) and one-time discounts (38%) also play a significant role in encouraging consumers to subscribe to emails and text messages from brands.
Channels for Delivering Personalized Content
Email continues to be the preferred channel for receiving personalized offers and exclusive messages, with 49% of consumers favoring it over other methods. This preference becomes more pronounced with age, peaking at 65% for consumers aged 65-74. The effectiveness of email is attributed to its ability to deliver personalization at scale without the algorithmic uncertainties of social media platforms.
Interestingly, while email leads in preference, younger consumers also show a strong inclination towards social media channels. For example, 34% of consumers aged 18-24 are influenced by brand social media ads, indicating that a multi-channel approach is essential for reaching diverse age groups effectively.
Leveraging Identity Resolution
The report emphasizes the importance of identity resolution in enhancing personalization. With the decline of third-party cookies, brands need robust methods to gather first-party data and recognize anonymous traffic. Wunderkind’s Identity Network, which identifies 9 billion devices and observes trillions of digital events annually, provides a solution by enabling brands to deliver personalized offers to previously anonymous visitors. This capability not only enhances the likelihood of marketing opt-ins but also improves the overall customer experience by providing relevant and timely offers.
Personalization can be transformative
The insights from Wunderkind’s 2024 Consumer Insights Report underscore the transformative power of personalization in digital commerce. By understanding and catering to the specific preferences of different consumer segments, brands can foster stronger relationships and drive higher engagement and sales. As the digital landscape continues to evolve, the ability to deliver personalized, value-driven experiences will be a key differentiator for successful brands. Embracing advanced technologies like identity resolution and leveraging multiple channels for personalized communication will be essential strategies in this new era of e-commerce.