Consumer Shopping Behaviors Unlock Opportunities for Retailers


A new industry study released by ADvendio shows that evolving consumer shopping behaviors are opening significant opportunities for retailers to boost sales and improve customer engagement through targeted cross-sell and up-sell strategies. 

The poll’s findings underscore the effectiveness of personalized online and in-store advertising, showcasing that tailored approaches are increasingly influencing purchasing decisions among key demographic groups, especially Millennials and Generation Z, the study states.

Enhanced Engagement Through Digital Platforms

The study reveals that a fifth (20%) of U.S. consumers are influenced to buy products after encountering ads on a retailer’s app, with Millennials (35%) and Gen Z (32%) more likely to be swayed by product recommendations made by retailers they are already loyal to compared to other channels. Notably, consumers show a growing preference for shopping directly with brands – 48% for fashion and 49% for beauty – over marketplace options, highlighting a shift towards brand loyalty and direct engagement, according to the study.

Retail giants like Walmart, Amazon and Target are leading the charge in advertising third-party products, with Walmart at the forefront, influencing 31% of consumers. This strategy not only enhances product visibility, but also positions these retailers as pivotal players in shaping buying trends, the study states.

In-store Advertising: Driving Impulsive Purchasing

In-store advertising proves even more effective, with 64% of U.S. shoppers admitting to impulsive buying when physically in a store and 67% stating they had bought a product that they’d not intended to buy after seeing it advertised to them in-store, rising to 78% of Millennials, according to the study.

Digital ads at the shelf-edge and immersive digital displays have had a clear impact, with over half (54%) of consumers open to trying new products and a further 50% feeling validated in their purchasing decisions by such targeted advertising, the study states.

Trust and Personalization: The Core of Modern Retail

Consumers are increasingly looking for personalized shopping experiences, with 56% favoring highly curated ads, according to the study. The trust factor plays a crucial role in the cross-sell/up-sell opportunity for retailers: 76% of consumers are more likely to purchase items recommended by a retailer they trust, this sentiment is even stronger among Millennials, at 82%.

Retailers, however, are facing challenges in capitalizing on this digital era: 66% of consumers receive unpersonalized ads and 75% often get served ads they aren’t interested in, the study states. This comes at a cost, as 39% are less loyal to retailers who don’t personalize content to them and 46% of consumers spend less with retailers who fail to deliver tailored content. This signals a critical need for retailers to refine their advertising strategies and enhance personalization to maintain consumer loyalty and drive sales.

“Today’s consumer shopping behaviors reveal a significant opportunity for retailers to upsell and cross-sell effectively. With shoppers eager to engage, it’s crucial that we not only meet but also anticipate their needs,” said Samantha Giaver, Head of Growth at ADvendio, in a news release. “Our research reveals that retailers need to focus on personalized and well-positioned ads to do more than enhance the shopping experience – but build loyalty and trust, which are fundamental to any retail sales strategy.”