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Executive Summary
- What you need to know
- Consumer trends: key takeaways
- Market predictions
- Opportunities
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Market Dynamics
- Market context
- Market drivers
- eCommerce continues to drive retail growth
- Consumers are cautious about current economic conditions
- Annual inflation sits at 3% as of June, the lowest it has been in over three years
- Graph 1: headline CPI and shelter CPI, 2021-24
- Consumer sentiment remains down, but is expected to rebound soon
- Graph 2: consumer sentiment index, 2022-24
- The growing younger generations will push the envelope for online personalization
- Google’s cookie collection will be up to the consumer
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Consumer Insights
- Consumer fast facts
- Consumer fast facts (cont.)
- The meaning of personalization
- Consumers are confident in identifying personalized experiences
- Personalization means tailored deals…
- Graph 3: meaning of personalization, 2024
- …with friendly faces and custom recommendations
- Women seek out personalized deals to help manage their time
- Graph 4: meaning of personalization, by gender and generation, 2024
- Across generations and genders, personalized online shopping experiences are about an elevated experience
- Customization opportunities resonate with multicultural consumers
- Graph 5: meaning of personalization, by race and Hispanic ethnicity, 2024
- Personalizing the online shopping experience
- Consumers want to personalize items that go in or on their bodies
- Graph 6: categories benefiting from personalization, 2024
- Personalizing material items allows consumers to express their personality, style and preferences
- Overall, most consumers are comfortable sharing personal details with brands
- Graph 7: personal details willing to share, 2024
- Women are more willing to share information that connects to their appearance
- Graph 8: personal details willing to share – top six, by gender and generation, 2024
- Skincare brands lean heavily into personalization
- Millennial men and older are open to sharing their location, opening opportunities for in-person events
- Younger consumers are focused on their health and seek out personalized solutions
- Younger consumers are focused on their health and seek out personalized solutions (cont)
- Graph 9: personal details willing to share – bottom six, by gender and generation, 2024
- Multicultural consumers are open to sharing details as they lean into personalization opportunities
- Graph 10: personal details willing to share – select options, by race and Hispanic ethnicity, 2024
- Brands lean into personalization to help multicultural consumers with their specific needs
- Openness to sharing personal details still dictates a need for brand responsibility
- Brand communication preferences
- Consumers want to hear from brands…
- …but there are caveats and guardrails to consider
- Graph 11: attitudes toward personalization – communications, 2024
- Opt-out options are a critical feature for brands and retailers to include
- Brands provide opportunity for consumers to opt-out of communications around sensitive occasions
- Email and text messages remain the most popular forms of communication
- Graph 12: preferred communication channels, 2024
- Younger consumers are more open to alternative communication methods
- Graph 13: preferred communication channels, by gender and generation, 2024
- Parents will also benefit from alternative communication methods such as social media
- Graph 14: preferred communication channels, by parental status, 2024
- Leverage social media as a place for alerts, announcements and engagements
- Consumers are open to hearing about a wide selection of information from brands
- Graph 15: personalized information of interest, 2024
- Personalization can integrate the online and in-store experience
- Multicultural consumers want more tailored options to meet their unique needs
- Graph 16: personalized information of interest, by race and Hispanic ethnicity, 2024
- Brands can tap into personalization to serve multicultural consumers’ individual concerns
- Instances for personalization
- Consumers lean into personalization to find the right products for the right occasion
- Graph 17: instances for personalization, 2024
- Personalization is a big opportunity within gifting and providing inspiration
- Younger consumers see how personalized options can elevate the shopping experience
- Graph 18: instances for personalization – select instances, by gender and generation, 2024
- Brands could look to guided tutorials to connect with younger consumers
- Parents value personalization to help them tackle the endless tasks on their plate
- Graph 19: instances for personalization – certain instances, by parental status, 2024
- Tools of interest
- Human connection is at the heart of personalization tools
- Graph 20: personalization tools of interest, 2024
- Younger consumers are primary targets for tech tools
- Graph 21: personalization tools of interest, by generation, 2024
- Multicultural consumers are most interested in engaging with tech features for personalization
- Graph 22: personalization tools of interest, by race and Hispanic ethnicity, 2024
- Mobile devices will be at the center of multicultural consumers’ personalization tech use
- Some consumers are willing to go so far as to pay for personal services
- Consumers see risks and rewards to using technology for personalization online
- Graph 23: attitudes toward online technology for personalization, 2024
- Younger consumers lead the way in technology adoption
- Graph 24: attitudes toward online technology for personalization, by generation, 2024
- However, technology shouldn’t overtake human connection
- Attitudes toward personalization
- Consumers want control over their personalized online experience
- Graph 25: attitudes toward personalization – filters and controls, any agree, by generation, 2024
- Selecting a shopper will go a long way with Gen X and younger
- Personalization can lead to brand loyalty
- Graph 26: attitudes toward personalization – experience, any agree, by generation, 2024
- Boomers feel the online environment could use some TLC
- Evolving retail: spotlight on AI
- Online shopping, personalization will reach a new frontier with AI adoption
- Generally, most consumers are positive toward AI
- Graph 27: paired attitudes toward AI, 2024
- Younger consumers will lead in AI interest and adoption
- Graph 28: paired attitudes toward AI, by generation, 2024
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Innovation and Marketing Trends
- Marketing and advertising
- Target uses personalization to tie together the online and in-store experience
- Best Buy updates its app to offer more personalization features
- Reebok taps into AI, social media and the metaverse to offer personalized digital shoes
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Appendix
- Market definition
- Consumer research questions
- Consumer research questions (cont)
- Consumer research methodology
- Generations
This report analyzes the impact of personalization on online shopping behavior in the USA. Personalized online shopping takes more than one form, and consumers have preferences that brands should take into account when implementing tailored experiences. Know how to take the next step in your online shopping personalization strategy.
US Personalization in Online Shopping Market – Current Landscape
Consumers feel confident in their ability to identify personalized experiences: 64% believe they can tell when an online shopping journey is personalized to them or not. This shows how critical personalization efforts are for brands and retailers. Consumers are looking for engaging, elevated online shopping options and want brands to create a shopping experience tailored to their specific needs and interests.
Evolving cookie policies will change how brands and retailers can gather information on consumers. With some sources no longer willing to allow third-party cookies, brands and retailers will rely more on consumers feeling comfortable sharing their own personal information. This means companies will need to emphasize data privacy and security if consumer are to share personal details and data.
Looking ahead, consumers will be looking for and expect more personalized experiences online. However, their apprehension and concern about sharing personal information is something companies must work to alleviate. In addition to communicating security and privacy measures, brands and retailers need to clearly highlight the benefits consumers can receive when they do share personal information and data. Consumers need to know the payoff if they are to offer up their information.
US Personalization in Online Shopping – Market Statistics
- When do consumers want personalization in online shopping? 40% of consumers would find personalization most helpful to find the right size product, followed closely by finding the right product for a specific task.
- Consumers are confident in identifying personalized experiences: Nearly two-thirds of consumers believe they know when an online experience is tailored to them, indicating how vital it is for brands to integrate personalized options throughout the online shopping journey.
- Online shopping reaching a new frontier: Almost three-quarters of consumers believe that AI will shape online shopping in the future. Privacy and data collection policies made clear will help those who are cautious feel more comfortable using AI in online shopping.
US Personalization in Online Shopping Market Report – What’s Inside?
Key Topics Analyzed in the Report
- Economic conditions impacting consumers online shopping behaviors
- The meaning of personalization to consumers
- How brands can personalize the online experience
- Brand communication preferences
- Instances for personalization efforts
- Personalization tools of interest
- Consumer attitudes toward personalization
- Spotlight on AI’s contribution to personalization online
Report Scope
This Report explores consumers’ attitudes and behaviors around brands and retailers providing a personalized shopping experience when shopping online.
Meet the Expert Behind the Analysis
This report was written by Katie Hansen. Katie joined Mintel in July 2019 and writes a variety of Reports within the retail and ecommerce space. She has experience in researching consumer behavior and enjoys observing the ever-evolving retail landscape, consumers’ changing behaviors and uncovering the “why” behind those behaviors.
Download Report SummaryPersonalization efforts will be at the heart of online shopping as consumers expect brands and retailers to continue to elevate and tailor the online experience.
Katie Hansen
Senior Analyst, Retail & eCommerce
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