tis the season for c u s t omer eng a gement

tis the season for c u s t omer eng a gement

overview WHA T WE WA NTED T O LEARN Retailers know the holidays are an important opportunity to build new customer relationships and strengthen customer loyalty, but are retailers meeting customer expectations? To answer this question, STARTEK conducted two custom research studies to look at customer behavior and the retailer s perspective on how holiday shopping impacts customer engagement. it is important to understand the behaviors on both sides of the cash register. To be successful, retailers need to offer omni-channel customer engagement solutions for their customers. this approach maximizes retailers ability to engage with their customers and influence behavior, while generating a better return on their investment across all touch points including phone, online and social media channels. The research uncovered how brands can get the most out of new and existing customer relationships as well as what types of engagement strategies are most important from delivering the same messages and promotions across all channels to the impact of holiday sales, i.e. Black friday and Cyber Monday on customer spending. We hope that you ll find the research included in this report informative and helpful as you develop your long- term customer engagement strategy. tweet us your feedback at @STARTEKglobal. Best regards, John Hoholik Chief Marketing Officer Roger Huff Director of Social Media & Digital Strategy

IMPORTANCE OF OMNI-CHANNEL STRATEGY WHO CARES ABOUT BLACK 82 FRIDAY? % of customers don t make a Black Friday plan 70 % of customers say Black Friday is meaningless because there will be sales throughout the holidays Retail brands expect the MOST IN-STORE $ SALES the week before Christmas CYBER MONDAY IS IMPORTANT TO RETAILERS NOT CUSTOMERS ONLY 36 % of customers say Cyber Monday is the best day to find online deals $ $ $ Retail brands expect the MOST ONLINE SALES on Cyber Monday CUSTOMERS WANT A CONSISTENT EXPERIENCE ACROSS CHANNELS 80 % of customers expect a brand to offer a consistent experience from mobile to laptop to in-store 40 % of RETAILERS say their brand doesn t offer the same sales in-store and online

IMPORTANCE OF OMNI-CHANNEL STRATEGY More shoppers are using MOBILE DEVICES T O RESEARCH & B UY 42 % of customers say they are more likely to use a smartphone or tablet to purchase a gift this year than last year 37 % say they use a mobile device for research, but purchase in a physical store 36 % say they shop on their mobile device while away from home genuinely on-thego shoppers WHAT WE LEARNED Retailers looking to acquire new customers this holiday season can t rely solely on shoppers who line up in the early morning for limited deals offered only on Black Friday. Customers are savvy and understand that they can find discounts and promotions throughout the holiday shopping season. Because Black Friday and Cyber Monday are meaningless to customers, it s imperative that retailers have an omni-channel strategy to capture customers across devices and throughout the entire holiday season not just on Black Friday and Cyber Monday. Holiday shoppers are looking for retailers who can offer an integrated omni-channel experience an experience that combines in-store, online and mobile shopping. retailers need to embrace an omni-channel strategy to really make a difference in sales.

CONNECTING WITH CUSTOMERS THE DIVIDE BETWEEN RETAILER EXPECTATIONS & CUSTOMER REALITY 47 % of customers say that store employees let things fall through the cracks because the holidays are so busy More than 1/3 of retailers have different customer experience expectations specific to the holiday season 82 % of retailers say they can maintain a positive experience for their customers during the holiday season HOW RETAILERS TRY TO DRIVE HOLIDAY SALES E - MAIL, IN- S T ORE, & COMPANY WEBSITES are the most popular ways for brands to communicate promotions to customers CUSTOMER EXPERIENCE MATTERS 70 % of customers say product quality drives loyalty... BUT... 66 % of customers are willing to pay more when the brand delivers a positive customer experience WHAT WE LEARNED Accurately measured customer engagement is critical for retailers looking to win customers during the holidays and retain those customers in the months and years following.to do so, CMOs need to prepare for the holiday shopping rush and ensure that they are providing the best possible experience for customers, pre and post purchase. Considering that two-thirds of customers are willing to pay more when a brand delivers a positive customer experience, the big question is can retailers really afford not to provide superior customer service?

ANTICIPATING CUSTOMER NEEDS HOLIDAY SHOPPING: WORST NIGHTMARE FOR CUSTOMERS 64 % of customers say they don t love shopping during the holidays 65 % of customers say going to the mall during the holidays is their worst nightmare CUSTOMERS AVOID STORES & SHOP O NLINE FOR HOLI DAY GIFTS 71 % of customers say shopping online is fun 88 % of customers say free shipping makes them more likely to shop online 30 % of customers shop online to find the best deal 20 % of customers shop online to avoid holiday crowds 51 % of customers shop in stores to physically evaluate products 71 % of retailers increase inventory for instore shopping

ANTICIPATING CUSTOMER NEEDS DO RETAILERS T R U L Y KNOW THEIR CUSTOMERS? 16 % of customers start holiday shopping before h alloween b u t... 55 % of retailers start holiday promotions before h alloween 54 % say store employees have a hard time answering questions about sales, inventory, backorders, etc., during the holidays b u t... 87 % of retailers feel like their brand gives all the information they need about sales, inventory, backorders, etc., to respond to customers during the holidays RETURNS WILL BE A BIG DEAL FOR RETAILERS 27 % of customers say they will contact retailers for returns 23 % of customers will call the retailer more than 1/4 of retailers anticipate following up with customers after purchases about returns WH AT WE LEARNED With today s empowered customers, retailers need to understand their needs and work to meet these needs. for retailers during the holiday season, it s not just about making sure the doors are open for Black Friday, but it requires understanding when customers like to shop, how they like to shop and evaluate products.

conclusion Having the right tools, strategies and resources in place is the first step. retailers must change the way they think, spend and act to fully realize the benefits of a return on customer engagement. Our research shows that brands need to pay attention to customers across channels. if a brand is only focused on in-store Black Friday promotions or one-sided marketing, they may be missing the opportunity to build a community and engage with customers during the busy holiday shopping season. As a first step, CMOs need to ensure that they own all of the customer engagement channels, including those traditionally siloed in operations or IT. KEY TAKEAWAYS: 1 CMOs need to own customer engagement by providing the best possible experience for customers, pre and post purchase. 2 Because Black Friday and Cyber Monday are meaningless to customers, it s imperative that retailers have an omni-channel strategy to capture customers across devices and throughout the entire holiday season. 3 Retailers must understand when customers like to shop, how they like to shop and evaluate products. METHODOLOGY Over1,000 customers and 300 retailers were surveyed in September 2014 through an online survey. Responses were collected from both male and female respondents, ages 18 and up, in the United States. Responses were random, voluntary and anonymous. each survey consisted of approximately 14 questions, using multiple option questions with one or more answers.