Survey finds only 20% of retail companies offer personalized experiences online

A survey released by Coleman Parks Research commissioned by media software services provider Amdocs found that “personalized experiences” remain low among telecom and media products even though Filipino consumers are more likely to spend when using them.

According to the survey, 87% of Filipino consumers are more likely to increase spending on highly personalized online shopping and payment experiences, and 74% of them would switch providers for a customer experience “that adapts to their changing needs.”

The research firm collected responses from 600 customers and 100 chief marketing officers (CMOs) in the Philippines from February to May. 

It found that 91% of Philippine CMOs recognize that products and services tailored to individual needs would improve consumer retention, but only 20% of their current programs, such as sales, marketing, and customer care, deliver “holistic” personalized experiences.  

Technology is believed to be the main barrier to this shift, with 77% of executives surveyed citing it as a concern.

Additionally, 75% cite senior stakeholder resistance to change and a belief that there is no need to further invest in personalization and 40% cite budgeting as the main barrier. 

“Today’s digital consumers keep evolving their benchmark experiences against the best apps and service experiences. All apps are a click away, so consumers do not distinguish between industries—the last best app you used sets your expectation benchmark for the next one,” said Gil Rosen, Amdocs Chief Marketing Officer.

“Communications service providers do not compete within their category; they compete against all apps and amazing experiences being provided every day by new and existing players. Even dating and gaming apps serve as a benchmark as well as the obvious suspects from online shopping, banks, or any other incumbent service providers—it creates the need for service providers to constantly strive to match those experiences,” he added

Although Filipino consumers want data-driven personalized experiences, 74% want their service providers to be clearer about personal data collection and use. Just under half of them believe that personalized interactions were created to mine data from them. 

While I’m of the thinking that information is something you surrender when you engage with anything online, I also think that companies need to work harder to communicate that fact.

“Communication service providers must take advantage of the fact that consumers are willing to share their data to get an advanced personalized experience tailored to their expectations. However, before this happens, they must improve their quality of service and instill trust in their customers about how their data will be used, and break down internal silos between marketing, sales, and customer care,” said Stephen Saw, Coleman Parkes Director.

SOURCE: Business World