Retail Experience INDEX 17

Transcription

1 Retail Experience INDEX 17

2 01 2 Executive Summary 3 Methodology 4 About Us 5-9 Retail Channel Behavior Retail Channel Preferences In-store Experience Retailer Selection Past Year Major Purchases Researching, Buying, and Spending Source Maru/Matchbox. TD Customer Experience. May Survey. TD Retail Card Services, A division of TD Bank, N.A Retail Financing Brand Loyalty

3 02 Executive Summary TDPartnershipPrograms.com WHY WE BUY Gain a better understanding of the buying behaviors, paths to purchase and shopping preferences of today's consumers. TD Bank polled consumers who have made a major purchase categorized as a single purchase of $500 or more within the past year. Recognizing that consumers are likely to have a different process for purchasing larger ticket items, our research specifically focuses on consumer trends around these purchases, including: (1) Product research and brand selection (2) Purchase financing (3) Retail channels (4) Loyalty rewards programs (5) Retail credit cards

4 03 Methodology TDPartnershipPrograms.com On May 15 24, 2017, we conducted an online survey with 1,021 Americans. The survey was 15 minutes in length and fielded only in English. The data has been weighted by age, gender and region to reflect the population. Methodology Notes & Key Subgroups In addition to core demographic subgroups, we identified additional subgroups of interest. Significant differences between subgroups are noted throughout using the icons below. $ Price Sensitive Consumers who, when making a major purchase, consider price to be very important. Loyalty Member Consumers who are members of one or more loyalty rewards programs. Retail Card Holder Consumers who hold one or more retail credit cards.

5 04 Our Vision TDPartnershipPrograms.com We will be the best run, customer focused, integrated financial institution with a unique culture. Our Vision: To Be The Better Bank It s what drives us every day. You can see it in our partnerships. In how we engage with our customers. In how we relentlessly innovate. It s part of our DNA. And it s always deliberate, strategic and guided by careful investment. Here's how we're doing it Our People We ve assembled an industry leading team of experts in Business Development, Technology, Marketing, Compliance, Operations and Analytics. All with one goal deliver for our partners. Our Headquarters We ve put down deep roots in Wilmington, DE. Now the center of our Partnership Business, we ve expanded to more than 100 dedicated credit employees to support our senior leadership team. Our Service The spirit of TD has always been captured by the way we treat our customers. Nowhere is that more evident than our investment in our state of the art Greenville, SC, call center. With ample capacity, we re able to offer US based customer service for all of our partners. Our Partners While our partnerships with Nordstrom and Target may grab the headlines, new programs with digital innovators like Samsung, HTC and ICON have greatly expanded our online presence and capabilities. Our Innovations We are constantly evolving to meet our partners and their customers where they are, blending innovation and technology with a human touch. Our focus is singular everything we do should enhance the customer experience.

6 05 Retail Channel Behavior

7 06 Retail Channel Behavior TDPartnershipPrograms.com In store Online Mobile 51% 28% 34% Where We Shop In store remains the go to choice for 51% of consumers saying they shop in store all the time 28% of consumers say they are shopping online all the time One third, 34%, of consumers are using retail mobile apps sometimes or all the time

8 07 Retail Channel TDPartnershipPrograms.com Behavior MEMBERSHIP DRIVES ENGAGEMENT Retail Card Owners & Loyalty Program Members are more likely than their non-engaged counterparts to say they shop online all the time Jane Doe Member Since 2011

9 08 Retail Channel Behavior TDPartnershipPrograms.com Respondents who reported to shopping online all the time 41% 26% 17% Millennials Gen X Baby Boomers Ages Ages Ages 55+ Age Isn't Just a Number Only 3% of people never shop online

10 09 Retail Channel TDPartnershipPrograms.com Behavior INCOME DRIVES ONLINE PURCHASES 64% of people who earn over $50K are more likely to shop online all the time

11 10 Retail Channel Preferences

12 11 Retail Channel TDPartnershipPrograms.com Preferences Ability to shop during off-hours No lines /crowds Promos, coupons, discounts 66% Millennials 63% Gen-X 46% Baby Boomers Shoppers say the primary perk of online and app shopping is 71% 52% 69% 48% 58% 51% Online Retail App Online Retail App Online Retail App

13 12 Retail Channel Preferences TDPartnershipPrograms.com Overall, men value Overall, women value Expanded online inventory Shop during off hours 51% VS. Men 44% 69% Women Men Lack of salespeople 43% Men Men and Women Shop Online for Different Reasons VS. VS. 74% Women Promos/discounts 38% 54% Women Men VS. 62% Women Shop from anywhere 49% VS. Men 53% Women Registry/sending gifts 26% Men VS. 31% Women

14 13 Retail Channel TDPartnershipPrograms.com Preferences THE IN-STORE ADVANTAGE 90% of consumers say the ability to see merchandise in person is a primary benefit

15 14 Retail Channel Preferences TDPartnershipPrograms.com Shopping Trends by Income Level Of consumers who earn over $50K per year Of consumers who earn over $100K per year 58% 64% Shop online during off hours vs. 42% of those earning less than $50K per year Enjoy comparison shopping online vs. 54% of those earning less than $100K per year 63% Like in store window shopping vs. 37% of those earning less than $50K per year

16 15 Retail Channel Preferences TDPartnershipPrograms.com Married and/or cohabitating consumers rank comparison shopping and the ability to send registry gifts higher than average as benefits of shopping online Wedded Bliss: Online Spending Habits of Married Consumers Comparison shopping Ability to send registry gifts 60% 34% Average is 51% vs. not married Average is 21% vs. not married

17 16 Retail Channel Preferences TDPartnershipPrograms.com Consumers who made that purchase online highly rank the following as benefits: Consumers who made that purchase in store rank the following as online benefits: 71% Ability to shop off hours Buying Big When comparing respondents who made their last major purchase in a retail store or online 71% Ability to shop off hours 52% Ability to save your shopping cart 48% No salespeople 39% Ability to compile a wish list 69% No lines/crowds

18 17 Retail Channel Preferences TDPartnershipPrograms.com When shopping at a retail store Consumers over the age of 35 ranked the ability to see merchandise in person more highly than millennials 93% VS. 49% Millennials Millennials Ages 35+ In store, Age Matters 81% However, on the whole, millennials and gen X seem to prefer the social attributes of shopping in person more than their older counterparts 50% Gen X Millennials ranked the ability to window shop more highly than consumers over the age of 55 32% Baby Boomers 43% Millennials VS. 32% Baby Boomers

19 18 In-store Experience

20 19 In-store Experience TDPartnershipPrograms.com IN-STORE EXPERIENCE 18% of respondents (on average) felt that the salesperson was highly influential when making a purchase; that number jumps to 29% when polling millennials

21 20 In-store Experience TDPartnershipPrograms.com Who seeks help from sales associates most frequently? 77% On average, 66% of respondents asked a sales associate for help during their last major purchase Baby Boomers 61% Millennials 69% Women 62% Men 72% +$100K annual income 63% -$50K annual income

22 21 Retailer Selection

23 22 Retailer Selection TDPartnershipPrograms.com HOW DO CONSUMERS DECIDE WHERE TO SHOP? 89% of consumers rate pricing/sales and product selection as the most important criteria when choosing a retailer

24 23 Retailer Selection TDPartnershipPrograms.com HOW DO CONSUMERS DECIDE WHERE TO SHOP? 79% say the importance of online shopping is underscored in the third-most important criteria free shipping

25 24 Retailer Selection TDPartnershipPrograms.com Across retail and online shopping, women are more likely than men to select a retailer based on Price Return policy Free shipping 92% Gender Differences 85% 70% 83% 73% 63% Women Men Women Men Women Men

26 25 Retailer Selection TDPartnershipPrograms.com When choosing a retailer, what is most important? Price Selection of product/merchandise Knowledgeable sales associates Generational Differences 63% 90% 82% 49% 47% 37% Millennials Baby Boomers Gen-X Millennials Ages under 55 Baby Boomers

27 26 Retailer Selection TDPartnershipPrograms.com FLEXIBILITY IS IMPORTANT Retailer's Return Policy and Seamless Purchase Experience rank more highly among consumers who are married than those who are not married

28 27 Past-year Major Purchases

29 28 Past-year TDPartnershipPrograms.com Major Purchases HEY, BIG SPENDERS 73% of U.S. consumers polled made a purchase of $500 or more in the last year

30 29 Past Year Major Purchases TDPartnershipPrograms.com Who made a major purchase last year? Retail card holders Loyalty program members 83% 77% An average of 3 major purchases last year An average of 2.6 major purchases last year Loyalty Knows No Bounds

31 30 Past-year TDPartnershipPrograms.com Major Purchases MEN HAVE A SLIGHT EDGE 78% of men made a major purchase, compared with 69% of women

32 31 Past Year Major Purchases TDPartnershipPrograms.com Made a major purchase in the last year Respondents indicate price as very important When making a major purchase, millennials and gen X rank price as very important and and are more likely to seek the best deal when compared with baby boomers 81% 63% Millennials Millennials Generational Differences 59% VS. Gen X 49% Baby Boomers 61% Baby Boomers

33 32 Research, Buying and Spending

34 33 Research, Buying TDPartnershipPrograms.com and Spending KNOWLEDGE IS POWER 89% of consumers researched their last major purchase before buying the product

35 34 Research, Buying, TDPartnershipPrograms.com and Spending The preferred method used by millennials to conduct their research Chat bot Mobile device 18% 54% Getting Their Facts Straight Average research Average research time is 8% time is 32%

36 35 Research, Buying TDPartnershipPrograms.com and Spending TIME WELL SPENT On average, the majority of survey respondents said they spent between 1-2 hours researching before making a major purchase

37 36 Research, Buying, TDPartnershipPrograms.com and Spending Big Spenders Are Doing Their Homework Consumers who spent $2K or more on a single purchase Price point impacts impulse purchase 57% Spent 5 or more hours researching Furthermore, consumers who spent more than $2K and purchased in-store were significantly less likely to make the purchase during their first visit. Of those who researched, consumers were more likely to use Likelihood to make purchase upon first visit 48% 32% 40% average 21% 23% 23% vs. spent less than 2K 12% vs. spent less than 2K Social media and blogs Retail mobile apps +$2K $500K $1K

38 37 Research, Buying TDPartnershipPrograms.com and Spending LOVE AT FIRST SIGHT Consumers who spent between $500-$1K were more likely to make a purchase during their initial visit to a store

39 38 Research, Buying, TDPartnershipPrograms.com and Spending Those who spent $1K or more on a major purchase are significantly more likely to make another purchase in the next six months 61% 59% Spend Today, Spend Tomorrow 39% +$2K spent $1 $2K spent -$1K spent

40 39 Retail Financing

41 40 Retail Financing TDPartnershipPrograms.com BUY NOW, PAY LATER 26% of consumers researched financing options before making their purchase, with 67% of those consumers researching financing in-store

42 41 Retail Financing TDPartnershipPrograms.com On average, consumers spent between 1-3 hours researching before they purchased: however, millennials reported spending the most time researching before purchasing 1-3 hours 4-6 hours +7 hours 47% 47% 43% Reported time spent researching finance options 31% 23% 10% Millennials Gen-X Millennials Gen-X Millennials Ages 35+

43 42 Retail Financing TDPartnershipPrograms.com PRIVILEGES OF PLASTIC $50K Those who earn over $50K are more likely to have a retailer credit card compared with those who earn less

44 43 Retail Financing TDPartnershipPrograms.com Use of retail credit cards by region Midwest region North region 43% 41% Location Matters 40% 31% West region South region

45 44 Brand Loyalty

46 45 Brand Loyalty TDPartnershipPrograms.com BRAND LOYAL 63% of consumers who made a major purchase in the past year chose the same brand always or often

47 46 Brand Loyalty TDPartnershipPrograms.com Brand Loyalty: Gender Differences Consumers who chose the same brand when making a major purchase in the past year Among those who are brand loyal, women are more likely to use loyalty programs and offers Brand loyal Loyality programs offers 73% It s Time to Make This Relationship Official 66% 56% 65% 70% 62% Men Women Women Men Women Men

48 47 Brand Loyality TDPartnershipPrograms.com Age Affects Loyalty Millennials are the most brand loyal, with 69% reporting to choose the same brand for a major purchase in the last year Gen-X likes to try new brands when making a major purchase Older consumers who are brand loyal tend not to take advantage of loyalty programs, offers, coupons, credit cards or mobile apps 69% 58% 56% 17% 24% 15% More so than other age groups, Boomers are the least likely to consider the brand a factor when making major purchases Millennials Gen-X Baby Boomers Millennials Gen-X Baby Boomers

49 48 Brand Loyalty TDPartnershipPrograms.com Respondents of higher incomes reported higher likelihood to choose the same brand when making a major purchase 68% 63% Affluence Paves the Way to Brand Loyalty 56% +$100K annual income $50 $100K annual income -$50K annual income

50 49 Brand Loyalty TDPartnershipPrograms.com Higher Spend Equals Higher Engagement Those who are brand loyal and spent more than $2K on their last major purchase are most likely to use Retailer s mobile app Loyalty/rewards program Credit card offers/coupons 46% 72% 53% 69%

51 50 Brand Loyalty TDPartnershipPrograms.com Consumers who spent over $2K on their last major purchase are more likely to choose the same brand when making those purchases Consumers who spent between $500 $1K on their last major purchase, typically do not consider brand a factor when making those purchases Spent over $2K Spent $500 $1K 66% Chose the same brand when making major purchases Economic Differences 18% Chose a new brand when making major purchases 16% Brand is not a factor when making major purchases 58% Chose the same brand when making major purchases 18% Chose a new brand when making major purchases 24% Brand is not a factor when making major purchases

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