Report: Personalized Experiences Are Boosting Consumer Engagement
A new report from Salsify and the Digital Shelf Institute (DSI) reveals that while personalization is fueling higher holiday spending, a looming shift in shopper behavior could challenge brands in the year ahead.
Salsify, a product experience platform, and DSI, a commerce community for manufacturers, surveyed more than 1,000 shoppers in the U.S. and U.K. to produce the “E-Commerce Pulse Report: Q4 2024,” which provides insights into consumer behavior for the busy fourth quarter and gives a glimpse of what to expect in 2025.
According to the report, 37% of respondents are making more frequent purchases due to personalized recommendations, with Gen Z and Millennials leading the charge. Fifty-three percent of Gen Z and 48% of Millennials said they’re more likely to hit “buy” when shopping experiences are tailored to their needs. However, as we near 2025, 69% said they’re planning to cut back on spending, which the two companies said is “a wake-up call for businesses dependent on consumer confidence,” per a media release on the findings.
“We’re witnessing a tale of two trends,” Dom Scarlett, Salsify research director, said in the release. “Consumers are more engaged than ever when experiences are personalized, but the signs of belt-tightening are clear for 2025. The key for brands will be balancing personalization with a strong value proposition.”
Personalization Fuels Holiday Spending Surge
The report indicates that personalized shopping experiences — from custom product recommendations to tailored discounts — are driving higher engagement. Gen Z and Millennials, in particular, are fueling this trend, seeking out brands that know them and cater to their unique preferences.
In addition to personalized offers capturing attention, 87% of shoppers said enhanced product content — detailed descriptions, comparison charts and immersive visuals — helps them make purchasing decisions, highlighting how important brands’ digital presence is.
[Also Read: Report Identifies Keys to Creating Brand Loyalty, Gap in Personalization]
What to Expect in 2025
While personalization is boosting sales now, the report signals caution ahead. Sixty-nine percent of shoppers plan to rein in spending next year, with 82% of Millennials leading the charge on financial restraint.
“Shopper intent changes from early to mid to late season,” Lindsey Simcik, digital content senior manager for Mars United Commerce and member of the DSI community, who contributed to the report, said in the release. “Consider how your brand and category are relevant based on the shoppers’ mindset throughout. Then, plan your activity and budget to maximize the opportunity. That might mean launching a campaign midweek versus on the retailer’s established cadence, or it might mean revising your secondary [product detail page] image for a different occasion midseason.”
Additional findings from the report include:
- Boomers are set to lead the way in spending in 2025, but data privacy concerns loom. Nearly 60% of Boomers are planning no cutbacks. However, their enthusiasm for personalized shopping may be tempered by growing concerns over data privacy, with Boomers (28%) more worried about data usage than Millennials and Gen Xers (both 17%) and Gen Zers (15%).
- Ratings and reviews are crucial on product detail pages. When it comes to what grabs shoppers’ attention most, customer ratings and reviews rank highest at 25%, beating even product images and videos (22%), and, despite spending concerns, pricing and availability (19%). The report suggests brands repurpose existing content to build out below-the-fold with quick how-tos, comparison charts, videos, reviews and Q&As.
Increased retailer network usage is necessary. The report suggests that even if a brand expands to just one more retailer, it could be one of three that 44% of shoppers buy from regularly. Millennials and Gen Xers, in particular, are most likely to shop from four to six retailers regularly. Additionally, 38% of shoppers regularly purchase from four to six different online retailers.