Great Omnichannel Expectations

Transcription

1 2 nd Annual Edition Great Omnichannel Expectations Shoppers want connected retail experiences in which all channels have something to offer on the path to purchase Shopper Survey Report

2 Evolving consumer behaviors and expectations continually challenge retailers to adapt and deliver what omnichannel consumers want. The need for fact-based insights into consumer expectations, which can help our retailer customers remain profitable and competitive, is what inspired ivend Retail to conduct our Great Omnichannel Expectations survey for the second year. According to our survey, more than 90% of North American consumers now regularly shop on multiple channels. Our research findings point to consumers changing perception of the store, which now consists of all channels, not just a single, physical location. It also reaffirms the relevance of brick-and-mortar retail, which continues to meet the real need among consumers to see, touch, and try firsthand before buying. All channels have something to offer on the shopper s path to purchase, and retailers need to optimize channels and how they work together to provide what consumers are looking for in a great shopping experience. Understanding the kinds of shopping experiences that win customer loyalty can provide you with an edge over other retailers that, in the wake of technological advancement and changing consumer preferences, continue business as usual. This year, we have the advantage of comparing survey results to last year s Great Omnichannel Expectations study. The comparison from last year to this year shows some changing trends and perceptions, but also confirms that consumers expect even demand now more than ever connected retail experiences. Our survey shows about one-third of consumers no longer think about how they shop they simply choose the option that s most convenient at the time. Moreover, 31.9% say they like to shop with the same retailer in different ways. The survey also confirms shoppers browse items online, even though they intend to make the purchase in a physical store, and the majority combines resources and options offered on different channels to make purchases, such as Buy Online, Pick-up In Store (BOPIS). This survey report includes insights that will help you provide the types of experiences your customers are looking for. Page 2 Great Omnichannel Expectations: 2 nd Annual Edition

3 Key Findings Again this year, the majority of North American consumers, 66.4%, say it s very important or somewhat important for retailers to have a total view of them on all channels. They expect retailers to use that data to provide relevant offers and access to information, however they expect retailers to collect and use data appropriately. Key findings from ivend Retail s North American survey include: Most shoppers are omnichannel: more than 92% shop on more than one channel, with the largest group, 51.6% shopping mostly in physical stores and sometimes online. Growing from 0% before broadband was widely available making online shopping an option, 34% now no longer think about how they shop, they just choose the most convenient option. Data collection is agreeable to 31.5% of consumers if they get something in return, but almost 37.5% want a say in what is collected. Online shopping experiences are described as smooth for about 67.8% of consumers, but only about half (31.6%) describe the process of in-store collection for items ordered online as smooth. More people, 50.5%, feel equally rewarded with loyalty rewards both online and in-store this year. That number is more than 10% higher than last year, when 40.3% of consumers felt that way. Survey Demographics 1,000 Customers Surveyed 250 Canada 750 United States Almost half of consumers are researching online before they buy: 54.6% use a PC or laptop, 40.4% use smartphones, and about 21.4% use tablets. When provided with a list of what would improve in-store shopping experiences sales assist fell behind other options with, 26.5% choosing retail sales associates using tablets to provide information - but only 12.5% wanting product recommendations this way. 36.9% of consumers say their in-store experiences can be improved by kiosks or digital help desks that provide information, and 33.5% say it could be improved with offers sent directly to their phones when they enter the store. Buy online, pick up in store (BOPIS) use is at 57.5% (just a half percent more than last year). The top reasons consumers say they choose this option is to save on shipping costs 65.3% and convenience 29.2%. Not all purchases are final at the checkout: 36.5% continue to research an item after they purchase it to see if they got the best price. About one-fourth (24.9%) would return and repurchase the item < Age Page 3 ivend Retail /

4 Shoppers Want Relevant Retail Experiences, Not Retailers That Get Personal As channel lines blur, shoppers are developing expectations that the in-store experience will also be able to deliver the conveniences of online shopping. Our survey found only 13.2% of North American consumers find shopping in stores more convenient than shopping online and that 47.8% receive targeted offers online, but don t receive them in physical stores. The key to providing the relevant, targeted offers that your customers want is data collection. Among North American consumers, the following percentages of consumers find it acceptable for retailers to track: Customers purchase histories, 68.3% Which items a shopper browses online, 41% How much shoppers spend, 31% What shoppers look at in the store, 30.6% Conversely, collecting other types of data did not meet with the same level of acceptance. Only 8% said it is acceptable for a retailer to collect a mobile number Only 15.9% found it acceptable for a retailer to track location based on a shopper s smartphone Only 13.9% said it is acceptable for a retailer to track purchases made for children. This is also an area in which opinions varied among age groups only 4% of shoppers 55 and older found this acceptable Page 4 Great Omnichannel Expectations: 2 nd Annual Edition

5 Overall, 42.8% say it is okay for retailers to collect data, but they don t want to be bombarded with marketing information, 37.5% of consumers want to have a say in what type of data retailers are collecting, regardless of incentive, and 31.5% say it is okay for retailers to collect data, as long as they get something in return. It s important to point out that 11.8% of the people in our survey, across all age groups, don t find data collection by retailers acceptable at all. These numbers underscore the importance for retailers to have carefully planned data collection and data use policies, keeping in mind that consumers express an interest in personalized offers, but don t want retailers to get personal. Page 5 ivend Retail /

6 Data access: Your customers are more informed than ever about the purchases Your customers are more informed than ever about the purchases they intend to make. This year s survey revealed 47% are researching an item online once and 31.8% research an item more than once before purchasing. PCs and laptops are still the most popular ways of researching products online, according to 54.6% of survey respondents, with smartphones (40.4%) and tablets (21.4%) also used for product research online. While shopping in a brick-and-mortar store, preferences are fairly evenly split between people wanting to use their smartphones to look things up (27.6%) and people who prefer to ask a sales associate for help (25.8%). How consumers get the information they need to make a purchasing decision, however, varies with age: How Shoppers Get The Information They Need 51.2% 48.5% Shoppers 34 and younger Shoppers 55 and older 35.0% 40.4% 37.0% 14.2% 17.3% 9.5% 8.6% 7.1% Research products at least once online before buying Research products using their smartphones before buying Use smartphones in the store to look up information Refer to ask a sales associate for help rather than look it up themselves They d get better service if sales associates used tablets Page 6 Great Omnichannel Expectations: 2 nd Annual Edition

7 Overall, the results of this year s survey seem to point to the fact that most shoppers want to have access to information they can find themselves: 36.9% this year said their in-store experiences can be improved by kiosks or digital help desks 33.5% say it could be improved with offers sent directly to their phones when they enter the store 46.4% said their shopping experiences would be improved with free Wi-Fi Sales assist falls behind other options, with 26.5% saying retail sales associates using tablets to provide info can improve in-store shopping, but only 12.5% want product recommendations this way Regardless of how you provide access to information, the message is clear: provide it. Ensure your ecommerce site contains all of the information your customers need to make purchasing decisions, and make sure customers can access it or endless aisle solutions while shopping in stores. To successfully provide accurate, consistent, real-time information to customers, you need a robust inventory management system that gives you the capability of managing inventory across all channels as a single stock pool. This technology will enable your business to help customers easily and conveniently locate whatever they are looking for and to minimize lost sales, and perhaps, lost customers. 36.9% Shoppers said their in-store experiences can be improved by kiosks or digital help desks Page 7 ivend Retail /

8 Shoppers Want to Use Multiple Channels to Make a Single Purchase In addition to asking North American consumers about researching on different channels before making a purchase, we also asked about using multiple channels to complete a purchase. Our survey revealed the majority of shoppers, 57.5%, have taken advantage of buy online, pick up in store (BOPIS) options. We asked consumers to weigh in on the reasons they chose BOPIS. The top five motivators are: Top Reasons Shoppers Choose BOPIS 65.3% Save on shipping costs Convenience Return it immediately if the shopper doesn t like the item 29.2% 23.5% 20.9% 17.5% In the event of an error to be able to deal with it immediately Shoppers like going to the store Although most responses in the survey are consistent regardless of gender, it seems that men are more likely to place orders. U.S. men in our survey proved to be the demographic most likely to use BOPIS, with 61% saying they had done so, compared to 57.5% for all respondents. They are also more likely (30.7% vs. 27.4% overall) to order an item in a store for later collection in the same store. Although most shoppers in our survey have completed purchases with a BOPIS option, only about 31.6% describe in-store collection processes as smooth, compared to 66% that describe online shopping that way. This suggests there is still work to be done to integrate ecommerce, inventory management, and in-store systems to improve the in-store collection experience for customers. Page 8 Great Omnichannel Expectations: 2 nd Annual Edition

9 How Retailers Can Improve In-Store Shopping Experiences ivend Retail also asked shoppers what they believe would enhance instore shopping experiences overall. The most popular responses are: What Shoppers Believe Would Improve The In-Store Experience 46.4% 36.9% 33.5% 26.5% 24.3% 22.2% Free Wi-Fi In-store kiosks/digital help desks Personalized offers sent directly to phone Staff using tablets to take payments Improved or quicker in-store collection processes Personalized loyalty offers sent directly to In addition, 33.7% of customers favor a mobile app that lets them use coupons, and 29.1% want offers sent to phone rather than paper coupons. This comes as little surprise considering the consumers in our survey report 58.7% miss out on coupons because they don t use them before they expire, and 50.2% simply forget to use paper coupons. Responses in this year s survey all seem to suggest a good shopping experience is characterized by relevance, access to information, and appropriate use of data that benefits the customer. 33.7% Customers favor a mobile app that lets them use coupons Page 9 ivend Retail /

10 Loyalty Program Consistency: Where Retailers Made the Greatest Gains in the Last Year In comparing this year s survey results to last year s, ivend Retail found one area where it appears shoppers are markedly more satisfied: omnichannel loyalty program consistency. More people, 50.5% feel equally rewarded online and in store this year a gain of more than 10% of last year (40.3%). In addition, only 10% to 12% say offers are more relevant or that benefits are better on one channel versus another other. We also asked if shoppers are looking for personalized experiences as rewards rather than money discounts, but only 8.9% responded that that would be preferable. Retailers are doing a better job of providing consistent loyalty experiences, most likely being aware that developing relationships with customers is a key to sustainable competitiveness. It s also wise to leverage the data you collect related to purchases made by customers enrolled in your loyalty rewards program to help continue to refine the program and to make relevant offers your customers will respond to. 50.5% Customers feel equally rewarded online and in-store this year Page 10 Great Omnichannel Expectations: 2 nd Annual Edition

11 A Sale Isn t Necessarily Over After Checkout Another area we explored with our survey this year is shopper behavior following a purchase. We found that after customers select items and complete their purchases, they still may not consider them final. Among the consumers in our survey: 36.5% 36.5% will research the item again online to see if they got the best price 24.9% look for sales with the intent of returning the item and purchasing it again at a lower price The survey also confirmed some shoppers will share their experiences on social media following a purchase. We were somewhat surprised that shoppers seem to be a little more inclined to share positive experiences than negative ones on social media: Shoppers will research the item again online to see if they got the best price 22.5% say they will post or tweet about a great purchase but 17.5% said they will do so for poor product quality. 19.6% will share the news on social media about great customer service vs. 14.8% that said they would comment on poor service. And don t let age fool you customers of any age can be active on social media. For example, among survey respondents 55 and older, 20.7% said they would share news of great customer service on social media, a slightly higher percentage than survey respondents as a whole. Page 11 ivend Retail /

12 How Well Is Your Business Meeting Customer Expectations? There is no doubt that change is continuing in retail, as technology available to consumers to continues to advance, their habits and preferences respond, and retail technology adapts and advances in response. Shoppers will always take the path of least resistance to a convenient, easy, competitively priced purchase to make shopping experiences as pleasant as possible and they will gravitate toward retailers that deliver what they want. The challenge for your business is better understanding your customers and providing the shopping experiences that will encourage their loyalty and those experiences may look different a few years in the future than they do today. Technology can help you provide the connected retail experiences your customers are looking for, and the right retail technology can adapt and scale with your business to give you the tools you will need in the future. Referenced Research and Assets Great Omnichannel Expectations How Retailers Can Offer More Personalized, Consistent Shopping Experiences That Increase Sales And Deepen Customer Loyalty Europe and North America: A Study in Omnichannel Contrasts How do omnichannel shopping experiences differ between countries, and how are they similar? Great Omnichannel Expectations Shopper Survey Report Research Report Download Report Europe and North America: A Study in Omnichannel Contrasts Research Report Download Report Trending ecommerce Breathes New Life into the In-Store Shopping Experience Infographic Download Infographic We d love to talk to you about where and how to continue your journey. For more free omnichannel resources, visit: Get in touch with ivend Retail ivend Retail by CitiXsys is the omnichannel retail management solution for the way retailers work today. It delivers a fully integrated solution designed to enable change, not just built to last. ivend Retail innovates retail technology, providing a technically-superior solution and offering open APIs which can be integrated broadly with leading ERPs and customer-facing applications. CitiXsys Americas Inc. One Rockefeller Plaza, 11th Floor, New York, NY USA T: F: E: newyork [at] citixsys.com Page 12