Consumers Want Personalized Promotions; Just Half Receive Relevant Ones

Everyone likes a customized gift, right?

Yes, but only if it’s the right gift. A recent study from PYMNTS Intelligence confirms personalized offers from merchants can have a big impact on how consumers shop, but failing to fully understand a customer’s needs can result in offers that fall flat.

The study, “Personalized Offers Are Powerful — But Too Often Off-Base,” which is based on a survey of more than 2,500 U.S. consumers, found that nearly 83% of all consumers are interested in customized discounts and promotion offers, but only 44% said the offers they receive are relevant to their needs.

This suggests a major missed opportunity for merchants, since nearly half of the consumers surveyed said truly relevant offers are likely to inspire them to switch merchants if they become aware of pertinent offers.

The takeaway? If merchants want to turn casual patrons into loyal customers, it’s not enough to send them generic coupons and discounts. Instead, business owners should carefully craft data-driven deals that reflect an accurate understanding of a customer’s specific needs.

This is especially true for millennials and Generation Z consumers. These two consumer segments are especially cognizant of the personalized offers that come their way.

Nearly nine in 10 millennials and 85% of Gen Z shoppers say they are interested in receiving personalized deals.

When those offers land correctly, these two sectors are happy to show their gratitude. Forty-one percent of millennials say they would try new merchants if those merchants provide offers truly matching their needs, alongside 34% of Gen Z and Generation X shoppers.

What do these two market segments value?

According to PYMNTS Intelligence data, Gen Z and millennial consumers are more likely than other age groups to be underwhelmed by monetary incentives. However, it’s worth noting that of all the deals offered, millennials and Gen Z still value monetary offers like discounts or promotions above other incentives — except for free shipping among Gen Z shoppers.

Additionally, 9% of Gen Z and 8% of millennials say the most interesting offers they could get are those giving exclusive access to new products, compared to 1% or fewer of the other generations.

Both groups are also more likely to value product recommendations or personalized product bundles. In fact, millennials and Gen Z are more than twice as likely as other segments to prefer recommendations.