Consumers want brands to make their shopping experiences count this holiday season.
That’s according to data conducted by The Harris Poll for Nift, a double-sided marketplace that allows companies to thank their customers with gifts, which shows that more than 60 percent of consumers are overwhelmed by the number of ads brands and retailers present to them.
Nearly eight in 10 consumers said that they feel brands have offered “fewer meaningful rewards and less support than they did in the past.”
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Saket Mehta, chief revenue officer at Nift, said part of that comes from a mismatch between what consumers expect and how brands work to deliver.
“Customers are expecting brands to understand not just what they’re buying inside of their store, but who they are as a consumer, what else they’re buying outside of the store that they still have a share of wallet on, like entertainment, or food and beverages and restaurants,” Mehta said. “They expect that platforms know what they want, but right now [brands and retailers are] lacking because they’re really just upselling their own products versus taking [consumers] on this unified and integrated journey across the board.”
Mehta said artificial intelligence can aid brands and retailers in creating a more personalized experience for consumers; but to do so well, he noted, companies need to consider both content and frequency. Nift’s data shows that 53 percent of consumers feel they receive too many shopping-related messages on social media, a figure that creeps up by 4 percentage points among Gen Zers.
Macroeconomic uncertainty has made the chase for new customers—and the game of retaining existing customers—more important for many brands and retailers this year. But Mehta said showing consumers a higher quantity of ads and incentives doesn’t mean as much as connecting with the consumer in a meaningful way.
“You’re reorienting the physical aisle into a digital aisle, and you’re seeing who is paying the most and where can you convert the most and what’s the safest bet, but you’re losing track on taking that next step: what else are their behaviors, and how do I create a unique and dynamic experience for [the consumer]?” he explained.
Based on Nift’s data, it seems a relatable and unique experience would be welcomed by many consumers; 94 percent of shoppers said they want more from the brands they shop with. About six in 10 consumers said they want brands to reward them for loyal behavior, while 46 percent noted that they think brands should work to present them with more personalized discounts.
Mehta said AI has only amped brands and retailers’ ability to efficiently process data into real-time information about the consumer.
“From a data processing perspective, we have the ability to now combine all this data [on a] much more real-time basis, versus talking to different systems and capabilities,” he said.
And when consumers feel rewarded by their brands and retailers of choice, they’re more likely to spend repeatedly, remain loyal to a brand or recommend that brand to others. Nift’s data shows that consumers that have a positive experience with a brand are 41 percent more likely to spend again in the future.
That’s especially critical as the holiday season—and its related shopping holidays, like Black Friday and Cyber Monday—creep up on companies. Nift’s data shows that nearly 80 percent of American shoppers said that, ahead of holiday season, they face “increased financial challenges,” while 77 percent of shoppers said they will work diligently to counteract that pressure and keep vigil on their holiday budgets.
For Mehta, consumers’ stress presents an opportunity. If brands and retailers can find a way to go beyond traditional advertising and marketing and offer consumers incentives they truly want, they may grab some of their holiday spend—and create repeat customers.
“Consumers remember how brands treat them during the holidays…and those impressions often shape how they feel about the brand for the rest of the year and going into the next year,” he said.
