SOURCE: MyBuys

November 12, 2008 09:00 ET

New MyBuys Study Indicates Combining Personalization With Discounts Is the Best Formula for Converting Shoppers in Current Economy

Thought Leader Survey Suggests That Irrelevant Online Promotions Irritate Nearly 50% of Online Adults and Sales Promotions Attract Customers

REDWOOD CITY, CA--(Marketwire - November 12, 2008) - MyBuys, the leading provider of personalized product recommendations, today revealed the results of a study conducted on its behalf by Harris Interactive® among 2,382 U.S. adults that focused on their preferences and reactions to retail promotions in light of the current economy. The results indicate that while sales and discounts are broadly popular -- marketers must go beyond blanketing price reduction, which can annoy customers, and compliment offers with personalized promotions, which move shoppers to buy.

As consumers tighten budgets in response to the economic crisis, it's not surprising that 62% of online adults have been influenced to purchase an item after learning it's on sale and 54% are more likely to pay attention to promotions about discounts given the state of the economy. But retailers who promote price cuts without personalizing the message may not see sales jump -- and could even lose customers. In fact, nearly half (48%) online adults are annoyed by online promotions that are irrelevant to them and 43% say they would consider not visiting a Web site in the future if a promotion irritated them.

"While it's clear that consumers appreciate deals, they want them on products that they actually want to buy," said Bob Cell, CEO of MyBuys. "At MyBuys we help our online retail clients target consumers with products and at price points that we know they are interested in. Our personalized offers convert 2-5 times more frequently than other promotions, increase increasing AOV 45% for our clients. This formula enables us to focus on helping our clients weather this economic climate."

In comparing results across age, gender and education groups some interesting contrasts emerge:

--  Given the current state of the economy, 60% of online women are more
    likely to pay attention to discounts as compared to 48% of online men.
--  The majority of online adults age 55+ (60%) say they are more likely
    to pay attention to sales promotions given the current state of the economy
    than 18-34 year olds (50%).
--  Additionally, 71% of online women 55+ say they are more likely to pay
    attention to this type of promotion than any other age group of men or
    women.
--  Those ages 55 and over are more likely to be annoyed by irrelevant
    promotions and/or would consider not visiting a site if an Internet
    promotion irritated them (74%) as compared to their younger counterparts
    (62%).
--  Online college graduates are more likely to be influenced to purchase
    an item after learning that there is a sale, discount or promotion (73%)
    than those who have completed high school or less (56%).
    

This Study of Online Advertisements, including methodology and full results, is available from MyBuys upon request.

About MyBuys

MyBuys is the leading provider of personalized product recommendations for online retailers. The company builds deep profiles based on each individual shopper's behavior, then uses a patented portfolio of algorithms and real-time optimization to deliver the most relevant recommendations. MyBuys' clients are increasing average order value by 45%, improving conversion rates by 90%, and multiplying the lifetime value of every customer. Premier retailers -- including Lancôme, SKECHERS, Golf Galaxy and Karmaloop -- partner with MyBuys to offer intelligent, personalized recommendations to their shoppers. Based in Redwood City, Calif., MyBuys is a privately held company. www.MyBuys.com

Harris Interactive Survey Methodology

The survey was conducted online within the United States by Harris Interactive on behalf of MyBuys.com between October 2-6, 2008 among 2,382 U.S. adults ages 18 and over. This online survey is not based on a probability sample and therefore no estimates of theoretical sampling error can be calculated. For complete methodology, including weighting variables, please contact Lisa Joy Rosner.

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