Findings show the need for personalization in retail
TUSTIN, Calif. – October 10, 2023 – Nogin (Nasdaq: NOGN), a pioneer in Commerce-as-a-Service (“CaaS”), today announced the results of its survey examining online shopping trends and preferences. The survey, conducted online by The Harris Poll on behalf of Nogin, polled over 2,000 U.S. adults aged 18 and older. A significant majority of these respondents are active online shoppers, with 26% having made a purchase in the past 24 hours. The data underscores the importance of various incentives in driving online purchases, such as free shipping (81%) and discounts (68%). The findings also highlight the growing significance of personalized experiences, with 20% of respondents influenced by personalized promotional emails and 17% by personalized brand recommendations.
The survey results suggest a notable shift in the ecommerce landscape. Traditional incentives such as free shipping and discounts continue to play a significant role in consumer purchasing decisions. However, the data also points to a rising preference among consumers for more personalized shopping experiences. In response to these evolving consumer preferences, retailers should consider enhancing their ecommerce capabilities and focusing on personalization to provide more individualized and engaging customer journeys. With the holiday season approaching, adapting strategies to align with diverse consumer needs could be pivotal for D2C retailers.
“As we approach the holiday season, the data underscores the need for retailers to provide online consumers with the right mix of incentives and personalized experiences,” said Jonathan Huberman, CEO at Nogin. “For D2C brands, this translates to a golden opportunity: optimizing their ecommerce approach using intelligent, AI-driven strategies that cater to individual shopper preferences. By doing so, they can not only boost sales, but also cultivate enduring customer relationships that thrive well beyond the holiday frenzy.”
Insights into online shoppers’ attitudes and behaviors include:
- Personalized experiences matter to consumers and help drive buying behavior. Among online shoppers, 20% report that receiving personalized promotional emails serves as a compelling motivator for making a purchase, while 17% find themselves swayed by personalized brand recommendations. The survey found that males are more likely than females to be inspired to make an online purchase based on personalized recommendations from a brand (19% of males compared to 14% of females). Meanwhile, younger respondents are more likely to be influenced by personalized recommendations than older respondents (23% of 18-24 year olds, compared to 10% for 65+).
- Social media is the new storefront as online shoppers of all ages make purchases through social ads. 70% of online shoppers say they make purchases directly through social media ads, with 29% of online shoppers who make purchases through social media ads saying they are making more purchases that way this year than they did last year. This rise in social shopping may be tied to how much time consumers spend on social media platforms, or it may be because social algorithms deliver personalized recommendations that resonate more strongly with shoppers.
In any case, social shopping is increasing among all age groups: 56% of people aged 65+ have made purchases through social media ads, while people aged 35 to 44 are more likely to make more purchases this year through social media ads than any other age group.
- Free shipping is the top incentive that inspires online purchases. Free shipping (81%) and discounts (68%) top the list of things online shoppers (i.e., those who have made an online purchase in the past year) say would inspire them to purchase online. What’s more, online shoppers are roughly 30% more inspired to make an online purchase if free shipping is offered (81%) than they are if free returns are available (48%). For many shoppers, offering free shipping could be just the “nudge” needed to encourage buying behavior.
- Lack of integrated payments, high shipping costs and difficult return policies are likely to cause an online shopper to abandon a purchase. High shipping is the top reason an online consumer would abandon an online order (78%) followed by difficult return policies (44%). Meanwhile, almost 1 in 4 (23%) online shoppers say not having integrated payments at checkout would increase their likelihood to abandon their online purchase. However, the value placed on the convenience of integrated payments and buy now, pay later (BNPL) services vary by age: Respondents over 65 care the least about having integrated payments (11%) and BNPL service (4%), while younger respondents are more likely to abandon a purchase if integrated payments are not offered (36% of 18-24 year olds, compared to 11% for 65+) or if BNPL options are not offered (18% of 18-24 year olds, compared to 4% for 65+).
Survey Methodology:
This survey was conducted online within the United States by The Harris Poll on behalf of Nogin from August 29-31, 2023, among 2,041 adults ages 18 and older, of whom 1,973 are online shoppers (i.e., have made a purchase online in the past year). The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within + 2.7 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Nogin.
About Nogin
Nogin (Nasdaq: NOGN, NOGNW), the Intelligent Commerce company, provides the world’s leading enterprise-class ecommerce technology and services for brand leaders that need to deliver superior growth with predictable costs and an exceptional online experience. The Nogin Intelligent Commerce technology is a cloud-based ecommerce environment purpose-built for brands selling direct-to-consumer (D2C) and business-to-business (B2B). Nogin frees its customers to focus on their business while running as much or as little of the digital commerce infrastructure as they choose. Founded in 2010, Nogin optimizes the entire ecommerce lifecycle for a variety of brands, such as Giordano’s Pizza, bebe, Brookstone, Hurley, and Kenneth Cole, as well as several B2B brands and marketplaces. To learn more, visit www.nogin.com or follow us on LinkedIn and on Twitter at @Nogincommerce.
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Contacts:
Media Contact:
BOCA Communications for Nogin
Nogin Investor Relations Contact:
CORE IR
Peter Seltzberg
212-655-0924
investors@nogin.com
