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Creepy or Cool: Study reveals how consumers react to digital personalization

Study of over 1,000 U.S. consumers finds that "cool" features help shoppers discover relevant products, information; "creepy" ones identify, target, track.

May 22, 2015

RichRelevance's recent study, "Creepy or Cool", revealed consumer attitudes towards digital enhancements to the store shopping experience. The study found that shoppers think it is cool to get digital help finding relevant products and information – and navigating the store, but they are creeped out by digital capabilities that identify, track and use location and demographics, such as targeted advertisements for consumers based on facial recognition, according to a release.

"Shoppers want digital personalization when they are ready to engage," Diane Kegley, CMO of RichRelevance, said in a statement. "They may not be ready for personalized messages the moment they walk in the door or even when they hit the dressing room, but our survey suggests they welcome relevant information and promotions when they are making a purchase decision."

‪The study also breaks down attitudes by age group, the released stated. Millennials are fairly aligned with their older counterparts when it comes to in-store personalization, although they are more comfortable with edgy capabilities such as facial recognition. One area of significant difference, the study revealed: dynamic pricing in the aisles (the practice of offering different prices for the same product). Millennial shoppers were the only age group to rate this feature more cool than creepy.

The study also revealed nearly seven in 10 shoppers use a mobile device while in the store, and retailers are investing heavily in new technologies to make the in-store shopping experience better than ever. This survey of 1,016 consumers was conducted in April 2015, and locates nine digital store capabilities along a continuum of cool and creepy.

Other study highlights include:

Cool

• You can scan a product on your mobile device to see product reviews and recommendations for other items you might like. Overall rating: 76 percent cool
• An interactive map on your mobile phone shows exactly where items are located and charts your most efficient path through the store. Overall rating: 69 percent cool
• Your location in the store triggers personalized product recommendations, promotions and coupons to pop up on your mobile device as you are shopping. Overall rating: 44 percent cool

Creepy

• Facial recognition technology identifies age and gender to target advertisements on digital screens. For example, an eye cream promotion for an older female shopper. Overall rating: 73 percent creepy 
• A salesperson greets you by name when you enter a store because your mobile phone signals your entrance. Overall rating: 74 percent creepy
• Facial recognition technology identifies you as a high-value shopper and relays this information to a sales associate.Overall rating: 75 percent creepy

"Our study shows that retailers need to focus on digital store capabilities that drive engagement and convenience by making sure the right products and content are always available to shoppers," Kegley said. "Retailers have a huge opportunity to leverage their biggest asset, the store, to gain an edge when it comes to customer experience."