New research about shopping for the upcoming holiday season reveals that consumers are more likely to stick with brands that personalize their offers and show an understanding of their needs. Consumers are also adjusting their behavior by starting to shop early and by allocating a bigger budget in anticipation of higher prices, results from the research showed.

The research on consumer opinions for holiday shopping this year was published in mid-September by Redpoint Global, the privately held Massachusetts-based software company specializing in customer engagement and data management. The study was carried out by global online market research firm Dynata, which conducted a survey of more than 1,000 US consumers to reach the findings. Key findings from the research were made public by Redpoint Global in a news release on the company’s website.

The research also showed that, for this holiday season, shoppers will continue to purchase heavily online, while also expressing interest in returning to physical brick-and-mortar locations for an in-store experience. Only 8% expect to shop solely online, compared to 16% who plan to shop exclusively in-store, with the remaining percentage of consumers planning to shop both online and in-store at varying degrees.

Online research prior to in-store purchasing will also form a critical component of the sales process, with 29% of shoppers primarily conducting research online before buying in a store. Purchasing online and then picking up in-store is also a trend that remains very important this year, with 60% of consumers planning to use the approach in 2021. By 2022 and beyond, however, only 15% of consumers indicate the combo method will be a primary part of their shopping experience.

“As consumers head increasingly back in-store, maintaining clear and consistent communication both on and offline will be key. To maintain consumer interest and minimize friction, retailers should be prepared with personalized offers and strong data transparency across channels,” said John Nash, chief marketing and strategy officer at Redpoint Global. “The more retailers can use relevant data to customize the experience consistently at all stages, the more successful they will be in driving retail sales this holiday season.”

Inflation and supply chain issues remain top of mind for most consumers, with 77% expressing concern on product shortages. However, most consumers are steeling themselves by shopping early and budgeting for increases. As of September 1, 26% had already begun holiday shopping, while 37% have adjusted their budgets to deal with the expected increase in prices, the research noted.

Transparency remains a key question facing consumers this holiday season. With product shortages forming the top consumer frustration issue, retailers need to be transparent about supply and product issues. Also at issue is how customer information is being collected and used. An overwhelming majority—at least 85%—are more likely to shop at retailers that customers feel are upfront about how their personal data will be handled this holiday season. This means it is imperative for retailers to communicate openly about where and when they use consumer information throughout the season, the research indicated.