Discovering What Shoppers Want From Their Retail Media
Consumers typically start their shopping trips with the necessary items in mind, but oftentimes that list — or their baskets — grows throughout the shopping journey.
Shoppers say they want more personalized messages coming their way, according to a recent retail media study published by Dunnhumby, and they’re willing to share data with retailers to make that happen.
The study, “Retail Media: Technology, Trust and Retail Experiences Reshaping Shopper Decisions,” reports that demand for personalized advertising is high and the majority of shoppers are open to more retail media experiences.
While it also found that in-store displays remain the most influential in terms of basket-building, retailers have an opportunity to grab consumers’ attention by boosting their in-store media propositions. But retail media’s effectiveness depends on how well retailers and brands deliver relevant and timely messages within these environments.
Online ads and personalized recommendations play a lesser role, suggesting brands and retailers that better integrate digital and physical retail media — specifically around price and familiarity — have a better chance at winning shoppers throughout the journey.
Retail Media Can Build Trust and Baskets
Many factors play a part in what shoppers put in their basket. Two-thirds (66%) base their selections on prior knowledge or experience, while 63% choose products with offers or savings, the study found. Nearly 50% shop with a budget in mind.
Retailers have a clear opportunity to gain customers through retail media today, but knowledge of the customer is key. Findings show that shoppers are open to new retail media technologies, with the most popular concepts being personalized pricing (64%), in-store screens with product suggestions (56%), and tailored health suggestions (54%).
Interestingly, nearly half of respondents (48%) say automated retail processes such as agentic commerce are intrusive, suggesting that retailers need to build trust and innovate with customers in mind before scaling the technology out further.
Shoppers Want a Personalized Experience
The majority (91%) of today’s shoppers are comfortable sharing their transactional data, but only if that means they will get more relevant, personalized offers and suggestions in return. The study found that consumers are more likely to buy from those retailers that can provide a personalized experience during the trip.
A majority (71%) of shoppers enjoy discovering new brands, indicating that by pairing trusted products with new, relevant recommendations, retailers can improve the shopping experience by making it feel personal and valuable for consumers.
The report concluded that consumers (69%) trust personalized recommendations based on their prior purchasing decisions — and are more likely to return to those retailers that consistently deliver suggestions that meet their needs.
“Retail media is transforming at an extraordinary pace, but the shopper perspective is often missing,” Michael Schuh, head of retail media at Dunnhumby, said in a release. “Today’s world is filled with marketing messages, so it’s vital retailers and brands break through the noise with deep shopper loyalty and quality engagements — to build trust, create the best shopper experience — and ultimately grow their business.”
The study was conducted online in January and was composed of 2,000 respondents in the U.S. and 1,000 respondents in the U.K.
