Online Shoppers Prefer Personalized Product Recommendations [6/16/2008]

According to a recent report by the E-Tailing group, not only do online shoppers prefer personalized product recommendations, they expect it. Many e-tailers, however, haven’t invested in the personalization technology that would provide this service.

Shopping online is a time-saving mechanism for consumers. In addition to saving time, consumers prefer it because it’s convenient, and they feel that it allows them to make better product choices. Of the three benefits cited, 71% of women prefer the convenience factor; 42% of men hold expectations that personalization will be based on past purchases.

The value of personalization goes to the bottom line. In essence it helps online retailers to build customer loyalty and increase sales. The numbers bear this out. Over 50% of consumers admitted that they normally make purchases from the recommendations; over three-quarters (77%) have made additional purchase via this method; and almost forty percent (36%) admit to being more loyal to retailers who provide this service.

Internet marketing has matured to the point where consumers appreciate the personalization of the online shopping experience. E-tailers are falling short though.

A mere 2% of those survey said that the personalized product recommendations made to them were based on previous purchases. Almost 80% of merchants don’t even try to indulge shoppers in this way, and only 41% admitted to having this as a priority in near future.

For more insight visit Shopping Portal Marketing

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