UK leads the way in personalisation

The UK leads the rest of Europe in the adoption and usage of personalisation technology when shopping online, according to a study released by IDC and RichRelevance.

The study, which surveyed 1,000 consumers in the UK, Germany and France, investigated how shoppers utilise personalised services in their purchasing choices and online shopping habits. Personalisation is most advanced in the UK, with 53 per cent citing personalised product recommendations as clearly relevant to their purchasing habits compared to four in 10 shoppers in Germany and France.

Not only do recommendations fuel greater spend, they also drive repeat visits. The highest online spenders are also the most likely to respond well to recommendations. Forty per cent of those spending over €600 buy a recommended product. In the UK 26 per cent of consumers also said that recommendations would make them more likely to shop at the same retailer again.

The research suggests that personalisation is most effective amongst UK consumers between the ages of 45 and 54 years old (36 per cent); this age group is the most likely to return to a retailer as a result of targeted recommendations, closely followed by 55 to 64-year-olds (32 per cent). The under 35s are the most interested in being recommended products they would not initially have considered, presenting an opportunity for retailers to influence this age group by delivering relevant recommendations at the right time.

“It’s clear that accurate, well-timed recommendations, based on popular customer behaviour, deliver sales results for retailers and help retain customers”, said Spencer Izard, head of European retail insights and executive advisory programme, IDC. “The research shows that personalisation is becoming one of the main competitive battlegrounds for online retailing, and retailers need to take it seriously.”

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