Market Overview

Monetate Study Shows Back-to-School Shoppers Still Prefer to Purchase In-Store

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Survey Indicates Personalization is Welcomed and May Yield Higher
Sales

Monetate,
the worldwide leader in personalization, today released results of a Back-to-School
survey
that showcased buyer preferences for back-to-school shopping.
The findings indicate that not only do consumers want personalized
offers that leverage existing data on past purchases and key
demographics to give them a better shopping experience, but also those
who want such personalization have a propensity to spend more.
Traditional offers like free shipping and discounts are effective in
attracting customers, but impact overall profitability by lowering
profit margins for retailers and do little to cement loyalty outside of
the back-to-school shopping experiences. Adding in a personalization
strategy can yield greater profitability and more loyal shoppers.

The study, conducted with Researchscape International, surveyed U.S.
consumers with one or more children under the age of 23 in July 2018. Of
the 536 respondents, 85 percent represent the primary party responsible
for back-to-school shopping. Although online shopping in general has
increased in recent years, back-to-school shopping remains mostly
in-store. The majority (56 percent) of respondents shopped at
brick-and-mortar stores versus 20 percent online, and only 7 percent on
mobile apps for their children, but shopping months are varied.

According to the survey, the majority of shoppers (48 percent) plan to
purchase supplies in August. However, 38 percent shopped in July, 12
percent in June and 2 percent will shop in September. Only 18 percent of
respondents had completed their shopping as of July, so there are plenty
of opportunities for retailers to claim their share of revenue from the
estimated billions that will be spent this year in back-to-school
shopping.

Traditional promotions like incentives and discounts do drive consumers
to stores, but adding in personalization is likely to increase sales and
is in fact, welcomed by consumers. The study showed that 60 percent of
respondents would welcome personalization offers and those shopping for
middle school children were most receptive to personalized offers.
Additionally, 78 percent of respondents said they were open to receiving
product recommendations from retailers. Ultimately, the Monetate survey
results showed that personalization drives greater sales and higher
overall profitability, especially as household income level increase.

"The advanced personalization technology we provide drives better
engagement and increases sales for the most trusted brands," said Brian
O'Neill, Chief Technology Officer, Monetate. "It's clear that consumers
welcome personalization for their back-to-school shopping and those
retailers that embrace personalization will be the big winners – not
just for back-to-school sales, but by building sustainable, loyal
customer relationships."

Retailers can still reap the benefits of personalization and product
recommendations in their back-to-school strategy, even late in August.
The September shoppers are just getting started. Learn how to easily
integrate Monetate personalization solutions into your e-commerce
techstack here
.

About Monetate
Monetate,
the global leader in personalization software for consumer-facing
brands, enables marketers to create experiences with improved relevance
for every customer, increasing their engagement and boosting business
outcomes. Powered by artificial intelligence, the Monetate Intelligent
Personalization Engine makes it easy to test and optimize, segment and
target, recommend products, and even create true 1-to-1 omnichannel
experiences. The company was recognized as an industry leader by two
leading analyst firms in June
2018
and August
2018
. Founded in 2008, with offices in the U.S. and Europe, Monetate
is used by leading brands around the world and influences billions of
dollars in revenue every year for QVC, Newegg, Timberland, Carnival, The
North Face, and hundreds of other market leaders. Learn more at www.monetate.com.

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