NRF NXT 2019 July 23, 2019 Joe Beier, Executive Vice President, GfK Consumer Insights Rachel Bonsignore, Senior Consultant, GfK Consumer Life

1. Joe Beier | Rachel Bonsignore
GfK
July 23, 2019
The Personalization Paradox

2. © GfK July 24, 2019 | GfK Personalization Paradox 2
…leveraging insights
to provide a customer
experience that is
tailored to a unique
consumer profile
Personalization is…

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The personalization
paradox question:
How can something so
specific and nuanced
be delivered at scale?

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The personalization
paradox answer:
By delivering on the
benefits consumers
value most via
personalization

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Macro trends illuminate the
benefits consumers value most
STRESSSELF SHARING

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Consumers are increasingly self-focused,
impacting the way they shop
Roper Reports
Worldwide 2011-18
QC1, QE1/J1/M1;
Roper Reports US
Spring 2012-17 QD13
Being true
to myself
Personal ideas
of success (2010-2017)
Being a good
spouse or parent
Having friends
that respect me
Authenticity
#3 personal value
Being
knowledgeable
SELF
47%
“I don’t feel
constrained by
social expectations
of my age or
gender”
50%
“The brands
I buy are an
expression of
myself”

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STRESS
Roper Reports Worldwide 2015-2017 QH5;
Roper Reports US Fall 2014 QP7
of Americans find at least one of 14
problems to be a major source of stress
19 points from 2015
90%
Stress is intensifying
Top stressors:
• The amount of money to live on
• Self-pressure
BUILDING UP OVER TIME
In 2014, Americans’ stress levels
had reached the highest reading
in three decades of research

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As anxiety rises, the need
for streamlining grows
Roper Reports Worldwide 2014-2018 QC1, QE1/J1/M1, QK2
47%
“I’m always
looking for ways
to simplify
my life”
#3
definition
of innovation:
simplifying
something
that was too
complex
Simplicity
#19 personal
value in the US
+7 ranks since 2014
STRESS

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Consumer openness to engage is rising –
led by Millennials
GfK FutureBuy® 2018; Roper Reports Worldwide 2018 QO2
43%
“I really like the idea of tech that ‘knows’ me
and can make recommendations and take
actions based on my wants & needs”
“I like it when retailers contact me on
my smartphone when out shopping”
“I like it when a website keeps track of my
visits and then recommends things to me”
+5 pts from 2015
+8 pts from 2015
63%
32% 55%
28% 33%

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Nearly twice the
2009 share
12%
2018
2009
Roper Reports Worldwide 2018 and 2009 A2; Roper Reports Worldwide 2016 O2
Paradoxically, worries about data
security are also on the rise
Personal information falling
into the wrong hands is a
top personal concern
61% of IT
professionals
have experienced
a data breach
48%
“It’s very
important to
actively manage
my online
identity” $5 BILLION
Civil penalty
Facebook may
have to pay for
mishandling
user data
19%

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Personalization benefits cascade from
leading macro consumer trends
Control
STRESSSELF SHARING
Values alignment
Simplification
Mode alignment
Peace of mind

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Enabling customers to guide an outcome
is future-focused personalization
GfK Future Buy 2018
Control
“I would be more loyal
to a brand or retailer
that lets me give
input or help shape
the products/services
I buy”
Hype product access
Fitness & nutrition certification
Training on demand
All access pass
Free personalization
49%
66%

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Delivering personalization through consumer
choice avoids some common pitfallsControl

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29%
33%
Roper Reports Worldwide 2018 QE1/J1/M1, QB7; https://www.fastcompany.com/90344987/toms-made-buy-one-give-one-famous-now-its-updating-the-model
Purchase decisions are not
just about the product
“I avoided a particular
brand or store in past
month because I disagree
with the company’s values”
Toms now lets
customers choose
a cause to support
with their purchase
Values
“I will select one brand over
another specifically because it
supports a cause I believe in”
“I only buy products or
services that appeal to my
beliefs, values or ideals”+6pt vs 2012
24%

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GfK FutureBuy® 2015-2018
Product curation is a glaring need
on the simplification landscapeSimplification
+8 pts since 2015
59% for Millennials
44%
“There are
too many choices
in many of the
categories that
I shop”

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Effective personalization drafts on
existing shopping behaviors
Where you last used
mobile device to shop?
Online-offline
divide is blurring
GfK FutureBuy®, 2017
Mode
Bringing the in-store beauty consultant to the
digital age, deployed across e-commerce, in-store,
mobile apps, voice, FB Messenger or WeChat
+150%
Conversion
+18%
Retention
+35%
Transaction Size
35%
65%

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GfK Consumer Life (Roper Reports®) US 2015 Spring
Putting a “human face” on AI-powered
tools reduces perceived threats
“AI has the ability
to be good, but
comes with some
inherent risks”
Nike Fit scans feet & provides
tailored shoe recommendations; in-store
associates have this feature on mobile
devices they use to assist customers
Peace of mind
“I’m increasingly
skeptical of whether
I can trust tech to
do everything it’s
supposed to do”
58%
59%

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Evaluate all programs
with: “what consumer
benefits are we
delivering?”
Put customers in
the drivers seat
Implications for your personalization executions
STRESSSELF SHARING
Programs adopt to
existing shopper modes,
not vice versa
“You made my experience
easier” is primary goal for
each interaction
Always hold
consumer trust
sacred
Enrich customer
relationships with new
‘sharing horizons’

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New horizons for
personalization
Personalized
pricing
New era of
transparency
Personalized
brand
identity
Voice
commerce

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GfK FutureBuyGfK Consumer Life
A global data & insight service providing
values, attitudes & behavioral insights in the
US since 1973 and globally since 1997; the
largest, longest-standing, and most robust
study of its kind
GfK FutureBuy® is the industry- standard
source illuminating shopper attitudes and
behaviors, covering 27 countries and 18
distinct product categories from CPG to
durables

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