FUTURE OF SHOPPING LATEST TRENDS IN RETAIL TODAY AND 2030 Survey by
OUTLINE The survey provides you with an overview of our future shopping behaviour, expectations and customer loyalty ABOUT COMARCH SHOPPING BEHAVIOUR AND EXPECTATIONS CUSTOMER LOYALTY SUMMARY 2
ABOUT COMARCH
ABOUT COMARCH Founding year 1993 Comarch onset 1991 RECOGNIZED BY Gartner, Forrester Research, IDC and more PUBLICLY TRADED on WARSAW STOCK EXCHANGE since 1999 OVER THOUSANDS OF SUCCESSFULLY COMPLETED PROJECTS ON EMPLOYES Continents 5in about 50Countries REVENUES 33 M EUR (2015) 5.400 HEADQUARTERS KRAKOW, POLAND GLOBAL PRESENCE Europe Asia North Middle East America Africa Latin America SUBSIDIARIES AND ASSOCIATES 50+ trade groups with large, international branch networks, such as REWE or Metro Systems. More than 5,400 employees work on projects in 50 countries all across the world. Thanks to high investments in research and development, Comarch can offer a broad range of innovative IT solutions, which are highly rated by both customers and analysts. Learn more about Comarch s portfolio, particularly for retail industry, and give your customers a unique experience. For further information please visit our website www.comarch.de Extensive experience through projects at: Comarch is a global provider of innovative IT solutions supporting the omni-channel customer journey in numerous industries like retail (e.g. ERP, Webshop, PoS, CRM & Marketing, and many more). The company s vision of tomorrow s markets and future shopping is based on decades of experience. For example, Comarch managed projects for online-retailers like Zalando, multi-channel players like Lacoste, Yves Rocher, Natura, or KiK having gone online with Comarch solutions, and 4
SOLUTIONS DEDICATED TO THE RETAIL INDUSTRY POS & Mobile POS Chain Store Management Business Intelligence ERP Loyalty Management Campaign Management Customer Service Omnichannel Sales Customer Experience Smart Objects E-Commerce B2C & B2B Customer ECM Customer Engagement Mobile Payment Social Mining Business Process Management Comarch offers a comprehensive solution for retail from a single source, providing all possibilities to create an ideal, personalized shopping experience at all touchpoints while ensuring process excellence and thus maximum cost efficiency in the organization at the same time. A high number of customers from the German retail sector, such as KiK, TEDi, Kaiser`s Tengelmann, or Konsum, rely on our solutions to approach new customer classes through new channels. www.comarch.de info@comarch.de 5
SHOPPING BEHAVIOUR AND EXPECTATIONS
VISION OF SHOPPING IN 2030 Digitalisation is key. Expectation is that stores provide digital services and payment options Top-2 Low-2 42 45 10 4 87% 14% Most stores will provide customers with digital services 42 44 10 4 86% 14% Cash registers/pos will be replaced with digital or mobile payments 36 41 16 7 77% 23% There will definitely be fewer physical stores than nowadays 18 43 26 13 61% 39% Store associates will be replaced with personal digital advisors (4) agree (3) slightly agree (2) slightly disagree (1) disagree Base: Total (n=3029); in % Q1: What is your vision of shopping in 2030: How much do you agree to the following statements? 7
VISION OF SHOPPING IN 2030 AMONG AGE GROUPS Digitalisation is key. Expectation is that stores provide digital services and payment optionsacross all age groups 55-65 45-54 35-44 25-34 18-24 Total Top-2 Low-2 Top-2 Low-2 Top-2 Low-2 Top-2 Low-2 Top-2 Low-2 Top-2 Low-2 86% 14% 85% 15% 89% 11% 86% 14% 88% 12% 87% 14% Most stores will provide customers with digital services 86% 14% 86% 14% 88% 12% 86% 14% 84% 16% 86% 14% Cash registers/pos will be replaced with digital or mobile payments 78% 22% 79% 21% 78% 22% 76% 24% 72% 28% 77% 23% There will definitely be fewer physical stores than nowadays 62% 38% 61% 39% 61% 39% 61% 39% 57% 43% 61% 39% Store associates will be replaced with personal digital advisors Base: Total (n=3029); in % Q1: What is your vision of shopping in 2030: How much do you agree to the following statements? 8
INTEREST IN PERSONALISED OFFERS BASED ON PERSONAL DATA Italians most open towards personalised offer Great Britain Germany Switzerland Netherlands Italy Poland TOTAL 45% 34% 40% 42% 56% 44% 43% TOTAL 62% 38% 38% 44% 48% 58% 48% 18-24 years AGE 54% 43% 50% 48% 72% 46% 52% 25-34 years 52% 42% 43% 45% 64% 45% 49% 35-44 years 34% 31% 40% 38% 42% 42% 37% 45-54 years 32% 19% 28% 37% 50% 32% 33% 55-65 years 41% 32% 40% 42% 53% 41% 41% Femal GENDER 49% 36% 40% 42% 59% 48% 46% Male Base: Total (n=3029); in %; share of yes-answers Q2: Therefore, they are striving to gain access to personal data incl. address and shopping preferences. Is it desirable for you to receive personalized offers based on your personal data? 9
CONSIDERATION OF MOBILE SERVICES WHILE SHOPPING Hight interest in in-store solutions across all countries Interest in in-store navigation is not related to age. Great Britain Germany Switzerland Netherlands Italy Poland TOTAL 55% 47% 50% 46% 58% 44% 50% Real-time personalised offers provided during in-store shopping 45% 50% 45% 52% 46% 55% 49% In-store navigation (used on your mobile to find the way to the desired product) 29% 29% 27% 23% 34% 24% 28% Real-time personalised offers provided when you are nearby the store Base: Total (n=3029); in % Q3: Retailers strive to provide customer with real-time in-store mobile services. Which of the following would you consider using? 10
INFORMATION AND PURCHASE: OFFLINE OR ONLINE Research across channels mostly takes place when shopping offline With increasing age shopping habits are clearly more oriented towards the stationary retail. 19 14 34 29 33% 63% Household equipment 16 15 46 17 31% 63% TV, Hi-Fi 10 11 40 33 21% 73% Home furnishing and decoration 9 10 32 37 19% 69% DIY, home improvement tools and supplies, gardening 21 12 25 41 33% 66% Apparel 11 10 22 47 21% 69% Beauty 10 7 20 37 17% 57% Jewellery Buy online without researching in-store Buy online with researching in-store Buy in-store with research online Buy in-store without researching online Missing to 100% does not buy resp. category Base: Total (n=3029); in % Q4: Please think of a typical product of each of the following categories: Where do you inform yourself and where do you usually buy the product? 11
INFORMATION AN PURCHASE GREAT BRITAIN: OFFLINE OR ONLINE Online research important for offline shopping GREAT BRITAIN The youngest are very internetoriented for shopping various categories. 19 13 32 28 32% 60% Household equipment 18 18 42 12 36% 54% TV, Hi-Fi 13 11 41 27 24% 68% Home furnishing and decoration 10 11 34 29 37 21% 63% DIY, home improvement tools and supplies, gardening 23 11 25 38 34% 63% Apparel 13 10 20 38 23% 58% Beauty 12 8 22 29 20% 51% Jewellery Buy online without researching in-store Buy online with researching in-store Buy in-store with research online Buy in-store without researching online Missing to 100% does not buy resp. category Base: Total (n=502); in % Q4: Please think of a typical product of each of the following categories: Where do you inform yourself and where do you usually buy the product? 12
INFORMATION AND PURCHASE GERMANY: OFFLINE OR ONLINE High share of online shopping for household, electronics and apparelmostly without research offline before GERMANY Mid aged are very active online buyers (esp. electronics and apparel). 30 11 24 32 41% 56% Household equipment 26 15 40 24 41% 56% TV, Hi-Fi 14 8 38 37 22% 75% Home furnishing and decoration 11 9 31 37 39 20% 70% DIY, home improvement tools and supplies, gardening 27 9 21 42 36% 63% Apparel 11 7 21 53 18% 74% Beauty 13 6 18 38 19% 56% Jewellery Buy online without researching in-store Buy online with researching in-store Buy in-store with research online Buy in-store without researching online Missing to 100% does not buy resp. category Base: Total (n=507); in % Q4: Please think of a typical product of each of the following categories: Where do you inform yourself and where do you usually buy the product? 13
INFORMATION AND PURCHASE SWITZERLAND: OFFLINE OR ONLINE Mostly reserved towards online shopping - but online research prior to offline shopping is high SWITZERLAND Most active online buyer among 25-34. The older mostly prefer offline shopping especially in apparel. 15 8 36 39 23% 75% Household equipment 14 8 55 19 22% 74% TV, Hi-Fi 6 8 47 34 14% 81% Home furnishing and decoration 6 7 35 37 43 13% 78% DIY, home improvement tools and supplies, gardening 20 8 22 49 28% 71% Apparel 11 7 21 55 18% 76% Beauty 9 5 19 45 14% 64% Jewellery Buy online without researching in-store Buy online with researching in-store Buy in-store with research online Buy in-store without researching online Missing to 100% does not buy resp. category Base: Total (n=506); in % Q4: Please think of a typical product of each of the following categories: Where do you inform yourself and where do you usually buy the product? 14
INFORMATION AND PURCHASE NETHERLANDS: OFFLINE OR ONLINE Electronics most often researched online and purchased offline NETHERLANDS Most active online buyers of household equipment, electronics and apparel among 25-44 years. 24 13 31 28 37% 59% Household equipment 17 12 44 20 29% 64% TV, Hi-Fi 7 9 38 40 16% 78% Home furnishing and decoration 6 5 30 4937 11% 79% DIY, home improvement tools and supplies, gardening 26 9 19 44 35% 63% Apparel 9 7 16 52 16% 68% Beauty 8 5 16 36 13% 52% Jewellery Buy online without researching in-store Buy online with researching in-store Buy in-store with research online Buy in-store without researching online Missing to 100% does not buy resp. category Base: Total (n=505); in % Q4: Please think of a typical product of each of the following categories: Where do you inform yourself and where do you usually buy the product? 15
INFORMATION AND PURCHASE ITALY: OFFLINE OR ONLINE Electronics most often researched online and purchased offline ITALY Most online shoppers of household products to be found among mid aged. 14 19 38 27 33% 65% Household equipment 13 18 49 16 31% 65% TV, Hi-Fi 8 13 43 29 21% 72% Home furnishing and decoration 11 16 33 3729 27% 62% DIY, home improvement tools and supplies, gardening 12 19 30 38 31% 68% Apparel 11 12 25 41 23% 66% Beauty 6 9 20 36 15% 56% Jewellery Buy online without researching in-store Buy online with researching in-store Buy in-store with research online Buy in-store without researching online Missing to 100% does not buy resp. category Base: Total (n=505); in % Q4: Please think of a typical product of each of the following categories: Where do you inform yourself and where do you usually buy the product? 16
INFORMATION AND PURCHASE POLAND: OFFLINE OR ONLINE Relatively high share of offline research and purchase online POLAND Across all categories young shoppers (18-24) with highest online purchase share. 12 21 45 19 33% 64% Household equipment 10 21 47 17 31% 64% TV, Hi-Fi 9 17 35 32 26% 67% Home furnishing and decoration 9 14 30 34 37 23% 64% DIY, home improvement tools and supplies, gardening 16 16 32 35 32% 67% Apparel 12 15 31 40 27% 71% Beauty 10 10 25 35 20% 60% Jewellery Buy online without researching in-store Buy online with researching in-store Buy in-store with research online Buy in-store without researching online Missing to 100% does not buy resp. category Base: Total (n=504); in % Q4: Please think of a typical product of each of the following categories: Where do you inform yourself and where do you usually buy the product? 17
FUTURE SHOPPING CHANNELS: OFFLINE OR ONLINE Household products and electronics will be most often shopped online Assumed channel choice is generally related to age: the younger the shopper the greater the share of online. 24 24 26 24 48% 50% Household equipment 23 24 25 24 47% 49% TV, Hi-Fi 17 15 30 34 32% 64% Home furnishing and decoration 18 15 27 37 31 33% 58% DIY, home improvement tools and supplies, gardening 22 21 27 29 43% 56% Apparel 18 15 25 33 33% 58% Beauty 12 12 23 30 24% 53% Jewellery Mainly/only online More often online More often in-store Mainly/only in-store Missing to 100% does not buy resp. category Base: Total (n=3029); in % Q7: Imagine your shopping behaviour in 5 years: To what extend are you going to buy the majority of products in the respective category online and offline? 18
FUTURE OF SHOPPING CHANNELS GREAT BRITAIN: OFFLINE OR ONLINE Household equipment, electronics and apparel will be most often shopped online 21 25 24 22 46% 46% Household equipment 23 26 23 19 49% 42% TV, Hi-Fi 17 18 31 27 35% 58% Home furnishing and decoration 17 17 28 37 23 34% 51% DIY, home improvement tools and supplies, gardening 22 23 26 27 45% 53% Apparel 15 16 25 26 31% 51% Beauty 13 14 24 22 27% 46% Jewellery Mainly/only online More often online More often in-store Mainly/only in-store Missing to 100% does not buy resp. category Base: Total (n=502); in % Q7: Imagine your shopping behaviour in 5 years: To what extend are you going to buy the majority of products in the respective category online and offline? 19
FUTURE OF SHOPPING CHANNELS GERMANY: OFFLINE OR ONLINE Household equipment, electronics and apparel will be most often shopped online 27 25 23 24 52% 47% Household equipment 25 29 21 22 54% 43% TV, Hi-Fi 21 15 26 36 36% 62% Home furnishing and decoration 19 15 25 34 34% 59% DIY, home improvement tools and supplies, gardening 24 25 21 29 49% 50% Apparel 17 16 19 41 33% 60% Beauty 14 12 17 34 26% 51% Jewellery Mainly/only online More often online More often in-store Mainly/only in-store Missing to 100% does not buy resp. category Base: Total (n=507); in % Q7: Imagine your shopping behaviour in 5 years: To what extend are you going to buy the majority of products in the respective category online and offline? 20
FUTURE OF SHOPPING CHANNELS SWITZERLAND: OFFLINE OR ONLINE Household equipment and apparel will most likely be bought online 21 21 25 32 42% 57% Household equipment 19 19 25 35 38% 60% TV, Hi-Fi 13 11 28 45 24% 73% Home furnishing and decoration 14 12 24 41 26% 65% DIY, home improvement tools and supplies, gardening 22 21 23 34 43% 57% Apparel 16 14 24 40 30% 64% Beauty 8 13 19 39 21% 58% Jewellery Mainly/only online More often online More often in-store Mainly/only in-store Missing to 100% does not buy resp. category Base: Total (n=506); in % Q7: Imagine your shopping behaviour in 5 years: To what extend are you going to buy the majority of products in the respective category online and offline? 21
FUTURE OF SHOPPING CHANNELS NETHERLANDS: OFFLINE OR ONLINE Household equipment, electronics and apparel will be most often shopped online 22 27 17 31 49% 48% Household equipment 21 24 18 33 45% 51% TV, Hi-Fi 13 10 24 50 23% 74% Home furnishing and decoration 15 9 24 45 24% 69% DIY, home improvement tools and supplies, gardening 24 21 20 34 45% 54% Apparel 16 12 18 41 28% 59% Beauty 10 11 16 32 21% 48% Jewellery Mainly/only online More often online More often in-store Mainly/only in-store Missing to 100% does not buy resp. category Base: Total (n=505); in % Q7: Imagine your shopping behaviour in 5 years: To what extend are you going to buy the majority of products in the respective category online and offline? 22
FUTURE OF SHOPPING CHANNELS ITALY: OFFLINE OR ONLINE Household equipment and electronics will be shopped mostly online 29 26 29 16 55% 45% Household equipment 30 22 28 17 52% 45% TV, Hi-Fi 18 17 34 26 35% 60% Home furnishing and decoration 23 21 28 20 44% 48% DIY, home improvement tools and supplies, gardening 22 17 35 25 39% 60% Apparel 22 13 31 25 35% 56% Beauty 9 8 27 32 17% 59% Jewellery Mainly/only online More often online More often in-store Mainly/only in-store Missing to 100% does not buy resp. category Base: Total (n=505); in % Q7: Imagine your shopping behaviour in 5 years: To what extend are you going to buy the majority of products in the respective category online and offline? 23
FUTURE SHOPPING CHANNELS POLAND: OFFLINE OR ONLINE Little variation across categories Online shopping clearly related to age. Among 18-24 online shopping preference is between 40-50% for all categories. 23 20 36 19 43% 55% Household equipment 19 21 36 20 40% 56% TV, Hi-Fi 19 18 35 23 37% 58% Home furnishing and decoration 19 15 33 21 34% 54% DIY, home improvement tools and supplies, gardening 21 17 36 26 38% 62% Apparel 20 17 35 26 37% 61% Beauty 16 12 33 23 28% 56% Jewellery Mainly/only online More often online More often in-store Mainly/only in-store Missing to 100% does not buy resp. category Base: Total (n=504); in % Q7: Imagine your shopping behaviour in 5 years: To what extend are you going to buy the majority of products in the respective category online and offline? 24
CUSTOMER LOYALTY
RETAILER LOYALTY BY CATEGORY Little variation across categories. Biggest retailer loyalty for beauty and apparel 7 30 33 26 37% 59% Household equipment 9 35 28 24 44% 52% TV, Hi-Fi 7 31 32 25 38% 57% Home furnishing and decoration 8 32 28 23 40% 51% DIY, home improvement tools and supplies, gardening 10 41 27 20 51% 47% Apparel 11 38 23 19 49% 42% Beauty 7 25 24 21 32% 45% Jewellery (4) agree (3) slightly agree (2) slightly disagree (1) disagree Missing to 100% does not buy resp. category Base: Total (n=3029); in % Q8: Regardless of online or offline shopping, for the majority of products in each of the categories: Do you perceive yourself as loyal to a specific retailer? 26
RETAIL TRIGGERS (STATIONARY RETAIL) Customer support is especially important for loyalty in TV, Hi-Fi Household equipment TV, Hi-Fi Home furnishing Home improvement tools Apparel Beauty Jewellery 19% 16% 17% 20% 17% 20% 11% Proximity of store 33% 28% 37% 30% 44% 31% 33% Opportunity to touch and buy the product on the spot 22% 31% 22% 21% 16% 17% 17% Customer-centric & supportive service provided by in-store shop associates 20% 18% 16% 15% 17% 18% 13% Accurate, individualized promotions and offers Missing to 100% does not buy resp. category Base: Total (n=3029); in % Q9: What is most important for you to come back to the same physical retailer and buy in the respective category again? 27
RETAIL TRIGGERS (ONLINE RETAIL) For 20% individualised promotions and offers are key for retailer loyalty. Household equipment TV, Hi-Fi Home furnishing Home improvement tools Apparel Beauty Jewellery 26% 25% 24% 23% 26% 24% 18% Purchasing anytime (24/7) 16% 14% 13% 14% 12% 14% 10% Next business day delivery 24% 24% 23% 21% 30% 17% 19% Flexible return policy 22% 22% 22% 20% 19% 22% 18% Accurate, individualized promotions and offers Missing to 100% does not buy resp. category Base: Total (n=3029); in % Q9: What is most important for you to come back to the same physical retailer and buy in the respective category again? 28
EFFECT OF SHOPPING EXPERIENCE ON RELATIONSHIP TO RETAILER Positive shopping experience generates loyalty across channels OFFLINE SHOPPING ONLINE SHOPPING POSITIVE SHOPPING EXPERIENCE... POSITIVE ONLINE EXPERIENCE...... in a physical store encouraged me to visit it again 57%... encouraged me to place new orders at the same online shop 47%... in physical store encouraged me to visit its online shop for more shopping 26%... encouraged me to visit the physical store of the same retailer for more shopping 31% NEGATIVE SHOPPING EXPERIENCE... NEGATIVE ONLINE EXPERIENCE...... in a physical store discouraged me to visit its online shop 13%... discouraged me to visit its physical store 13%... in a physical store discouraged me to visit its physical store again 28%... discouraged me to place new orders at the same online shop 22% I do not pay attention to in-store experience at all. 19% I don`t pay attention to online shopping experience at all 23% Base: Total (n=3029); in % Q5: Has a previous in-store experience with a particular retailer ever affected your shopping activities related to this retailer? Q6: Has a previous online shopping experience with a particular retailer ever affected your activities related to the retailer? 29
LOYALTY PROGRAMME MEMBERSHIP Almos 3/4 with loyalty membership. Due to life stages highest share among mid aged TOTAL FEMALE MALE Yes 29% 23% 35% No 71% 77% 65% 26% 76% 30% 30% 39% 61% 74% 24% 70% 70% 18-24 years 25-34 years 35-44 years 45-54 years 55-56 years Base: Total (n=3029); in % Q11: Are you a member of at least one loyalty program? 30
LOYALTY PROGRAMME 71% Yes (n=2155) No Online At a counter in the store Prefered communication 39% 36% Via smartphone app 8% 29% No preference 17% Identification in-store Loyalty card (plastic card) 88% User name + address Virtual card on a smartphone 6% 6% Membership Preferred way to receive coupons Via email/web to use them digitally 34% Via email/web to print at home Via app/smartphone 19% 15% Via snail mail/postal 30% Via newspaper/magazines 2% Base: Q11: Total (n=3029), Q11a-c: Loyalty programme members (n=2155); in % Q11: Are you a member of at least one loyalty program? Q11a: What is your preferred way to communicate with your loyalty program? Q11b: What is your preferred way to receive coupons? Q11c: How do you identify yourself when you shop in-store? 31
LOYALTY PROGRAMME GREAT BRITAIN 79% Yes (n=395) No Online At a counter in the store Preferred communication 52% 26% Via smartphone app 4% No preference 18% 21% Loyalty card (plastic card) Identification in-store 95% User name + address 4% Virutal card on a smartphone 1% Membership Preferred way to receive coupons Via email/web to use them digitally 31% Via email/web to print at home 20% Via app/smartphone 8% Via snail mail/postal 39% Via newspaper/magazines 2% Base: Q11: Total (n=502), Q11a-c: Loyalty programme members (n=395); in % Q11: Are you a member of at least one loyalty program? Q11a: What is your preferred way to communicate with your loyalty program? Q11b: What is your preferred way to receive coupons? Q11c: How do you identify yourself when you shop in-store? 32
LOYALTY PROGRAMME GERMANY 64% Yes (n=322) No Online At a counter in the store Preferred communication 40% 37% 36% Via smartphone app No preference 7% 16% Identification in-store Loyalty card (plastic card) 94% User name + address Virtual card on a smartphone 2% 3% Membership Preferred way to receive coupons Via email/web to use them digitally 35% Via email/web to print at home Via app/smartphone 13% 18% Via snail mail/postal 31% Via newspaper/magazines 2% Base: Q11: Total (n=507), Q11a-c: Loyalty programme members (n=322); in % Q11: Are you a member of at least one loyalty program? Q11a: What is your preferred way to communicate with your loyalty program? Q11b: What is your preferred way to receive coupons? Q11c: How do you identify yourself when you shop in-store? 33
LOYALTY PROGRAMME SWITZERLAND 77% Yes (n=389) No Online At a counter in the store Preferred communication 39% 36% Via smartphone app 8% No preference 17% 23% Loyalty card (plastic card) Identification in-store 88% User name + address 6% Virtual card on a smartphone 6% Membership Preferred way to receive coupons Via email/web to use them digitally 34% Via email/web to print at home Via app/smartphone 19% 15% Via snail mail/postal 30% Via newspaper/magazines 2% Base: Q11: Total (n=506), Q11a-c: Loyalty programme members (n=389); in % Q11: Are you a member of at least one loyalty program? Q11a: What is your preferred way to communicate with your loyalty program? Q11b: What is your preferred way to receive coupons? Q11c: How do you identify yourself when you shop in-store? 34
LOYALTY PROGRAMME NETHERLANDS 58% Yes (n=295) No Online At a counter in the store Preferred communication 24% 47% 42% Via smartphone app 7% No preference 22% Identification in-store Loyalty card (plastic card) 84% User name + address Virutal card on a smartphone 8% 8% Membership Preferred way to receive coupons Via email/web to use them digitally 42% Via email/web to print at home 16% Via app/smartphone 9% Via snail mail/postal 31% Via newspaper/magazines 2% Base: Q11: Total (n=505), Q11a-c: Loyalty programme members (n=295); in % Q11: Are you a member of at least one loyalty program? Q11a: What is your preferred way to communicate with your loyalty program? Q11b: What is your preferred way to receive coupons? Q11c: How do you identify yourself when you shop in-store? 35
LOYALTY PROGRAMME ITALY 74% Yes (n=375) No Online At a counter in the store Preferred communication 35% 41% Via smartphone app 9% No preference 14% 26% Identification in-store Loyalty card (plastic card) 81% User name + address Virutal card on a smartphone 11% 8% Membership Preferred way to receive coupons Via email/web to use them digitally 43% Via email/web to print 30% Via app/smartphone Via snail mail/postal 11% 15% Via newspaper/magazines 1% Base: Q11: Total (n=505), Q11a-c: Loyalty programme members (n=375); in % Q11: Are you a member of at least one loyalty program? Q11a: What is your preferred way to communicate with your loyalty program? Q11b: What is your preferred way to receive coupons? Q11c: How do you identify yourself when you shop in-store? 36
LOYALTY PROGRAMME POLAND 75% Yes (n=379) No Online At a counter in the store Preferred communication 30% 50% Via smartphone app 4% No preference 15% 25% Identification in-store Loyalty card (plastic card) 88% User name + address Virtual card on a smartphone 6% 6% Membership Preferred way to receive coupons Via email/web to use them digitally Via email/web to print at home Via app/smartphone Via snail mail/postal 32% 22% 17% 27% Via newspaper/magazines 2% Base: Q11: Total (n=504), Q11a-c: Loyalty programme members (n=379); in % Q11: Are you a member of at least one loyalty program? Q11a: What is your preferred way to communicate with your loyalty program? Q11b: What is your preferred way to receive coupons? Q11c: How do you identify yourself when you shop in-store? 37
LOYALTY PROGRAMME TRIGGERS Financial advantages most impactful triggers for loyalty programmes 45 41 9 6 86% 15% Offers and promotions 36 45 11 7 81% 18% Quality and quantity of the rewards shop 40 41 12 7 81% 19% Possibility to collect points 21 40 25 15 61% 40% Advantages such as previews and preselling of products 14 36 31 19 50% 50% To be part of the brands product development 15 32 31 23 47% 54% To be part of competitions and lotteries 9 24 33 34 33% 67% Engagement: digital achievements and games Quite important Rather important Rather unimportant Not important Base: Total (n=3029); in % Q12: In order to make the loyalty program attractive for you: How important are. 38
LOYALTY PROGRAMME TRIGGERS - AGE Youngest age group also interested in previews and pre-selling as well as gaming 55-65 45-54 35-44 25-34 18-24 Total Top 2 82% 84% 88% 86% 85% 86% Offers and promotions 77% 82% 83% 83% 84% 81% Quality and quantity of the rewards shop 76% 82% 83% 82% 82% 81% Possibility to collect points 53% 56% 62% 65% 69% 61% Advantages such as previews and pre-selling of products 42% 46% 51% 54% 58% 50% To be part of the brands product development 37% 40% 48% 57% 54% 47% To be part of competitions and lotteries 22% 27% 36% 41% 43% 33% Engagement: digital achievements and games Top-2 (Quite important, rather important) Base: Total (n=3029); in % Q12: In order to make the loyalty program attractive for you: How important are. 39
LOYALTY PROGRAMME TRIGGERS GREAT BRITAIN 48 39 6 7 Quality and quantity of the rewards shop 49 37 7 7 Possibility to collect points 41 44 6 8 Offers and promotions 19 33 27 21 Advantages such as previews and pre-selling of products 14 28 30 22 To be part of the brands product development 14 28 31 26 To be part of competitions and lotteries 11 19 29 42 Engagement: digital achievements and games Quite important Rather important Rather unimportant Not important Base: Total (n=502); in % Q12: In order to make the loyalty program attractive for you: How important are. 40
LOYALTY PROGRAMME TRIGGERS GERMANY 36 45 9 10 Quality and quantity of the rewards shop 43 34 12 11 Possibility to collect points 31 45 15 10 Offers and promotions 17 41 25 17 Advantages such as previews and pre-selling of products 10 33 33 24 To be part of the brands product development 10 27 34 29 To be part of comeptitions and lotteries 7 20 39 35 Engagement: digital achievments and games Quite important Rather important Rather unimportant Not important Base: Total (n=507); in % Q12: In order to make the loyalty program attractive for you: How important are. 41
LOYALTY PROGRAMME TRIGGERS SWITZERLAND 42 43 11 5 Offers and promotions 40 42 13 5 Possibility to collect points 39 42 14 5 Quality and quantity of the rewards shop 23 39 27 11 Advantages such as previews and pre-selling of products 17 32 35 17 To be part of competitions and lotteries 15 34 35 16 To be part of the brands product development 10 24 35 30 Engagement: digital achievements and games Quite important Rather important Rather unimportant Not important Base: Total (n=506); in % Q12: In order to make the loyalty program attractive for you: How important are. 42
LOYALTY PROGRAMME TRIGGERS NETHERLANDS 37 44 10 9 Offers and promotions 30 43 14 13 Possibility to collect points 24 47 17 12 Quality and quantity of the rewards shop 13 37 30 20 Advantages such as previews and pre-selling of products 10 30 29 31 To be part of competitions and lotteries 8 29 36 28 To be part of the brands product development 6 20 32 43 Engagement: digital achievements and games Quite important Rather important Rather unimportant Not important Base: Total (n=505); in % Q12: In order to make the loyalty program attractive for you: How important are. 43
LOYALTY PROGRAMME TRIGGERS ITALY 57 36 5 2 Offers and promotions 35 49 10 6 Quality and quantity of the rewards shop 36 46 13 5 Possibility to collect points 28 44 19 9 Advantages such as previews and pre-selling of products 18 42 25 15 To be part of the brands product development 15 28 33 24 To be part of competitions and lotteries 11 28 30 30 Engagement: digital achievements and games Quite important Rather important Rather unimportant Not important Base: Total (n=505); in % Q12: In order to make the loyalty program attractive for you: How important are. 44
LOYALTY PROGRAMME TRIGGERS POLAND 53 38 7 3 Offers and promotions 42 44 10 4 Quality and quantity of the rewards shop 39 46 12 3 Possibility to collect points 23 45 23 9 To be part of competitions and lotteries 24 43 23 10 Advantages such as previews and pre-selling of products 17 42 29 12 To be part of the brands product development 12 31 35 23 Engagement: Digital achievements and games Quite important Rather important Rather unimportant Not important Base: Total (n=504); in % Q12: In order to make the loyalty program attractive for you: How important are. 45
IMPORTANCE OF DATA PRIVACY IN LOYALTY PROGRAMMES Transparency is very important when collecting personal data The higher the age the more important is data privacy. 59 34 5 1 Transparency: how does the company use my personal data? 56 37 5 1 Understandable terms and conditions 53 39 7 2 To be able to see what kind of personal data the company collects 53 38 7 2 To be able to easily unsubscribe 44 39 12 5 To be rewarded when I allow the company to use my personal data for marketing reasons Quite important Rather important Rather unimportant Not important Base: Loyalty programme members (n=2155); in % Q13: How important are the following factors for you when it comes to collecting personal data in the context of a loyalty program? 46
IMPORTANCE OF DATA PRIVACY IN LOYALTY PROGRAMMES GREAT BRITAIN Transparency and understandability are expected 57 35 5 3 Transparency: how does the company use my personal data? 51 41 5 3 Understandable terms and conditions 51 39 6 4 To be able to see what kind of personal data the company collects 53 35 9 3 To be able to easily unsubscribe 48 40 8 4 To be rewarded when I allow the company to use my personal data for marketing reasons Quite important Rather important Rather unimportant Not important Base: Loyalty programme members (n=395); in % Q13: How important are the following factors for you when it comes to collecting personal data in the context of a loyalty program? 47
IMPORTANCE OF DATA PRIVACY IN LOYALTY PROGRAMMES GERMANY Everything similarly important: even to be rewarded for allowing the use of personal data 57 38 4 1 Transparency: how does the company use my personal data? 57 38 4 1 Understandable terms and conditions 56 38 5 1 To be able to see what kind of personal data the company collects 50 39 9 2 To be able to easily unsubscribe 43 37 17 4 To be rewarded when I allow the company to use my personal data for marketing reasons Quite important Rather important Rather unimportant Not important Base: Loyalty programme members (n=322); in % Q13: How important are the following factors for you when it comes to collecting personal data in the context of a loyalty program? 48
IMPORTANCE OF DATA PRIVACY IN LOYALTY PROGRAMMES SWITZERLAND Transparency and understandability are expected 60 32 7 1 Understandable terms and conditions 64 26 8 2 Transparency: how does the company use my personal data? 53 37 8 2 To be able to easily unsubscribe 57 32 9 2 46 36 15 4 To be able to see what kind of personal data the company collects To be rewarded when I allow the company to use my personal data for marketing reasons Quite important Rather important Rather unimportant Not important Base: Loyalty programme members (n=389); in % Q13: How important are the following factors for you when it comes to collecting personal data in the context of a loyalty program? 49
IMPORTANCE OF DATA PRIVACY IN LOYALTY PROGRAMMES NETHERLANDS Easy process to stop membership and transparency are expected 54 40 5 1 To be able to easily unsubscribe 55 38 5 2 45 44 9 2 Transparency: how does the company use my personal data? To be able to see what kind of personal data the company collects 46 42 8 3 Understandable terms and conditions 39 39 12 11 To be rewarded when I allow the company to use my personal data for marketing reasons Quite important Rather important Rather unimportant Not important Base: Loyalty programme members (n=295); in % Q13: How important are the following factors for you when it comes to collecting personal data in the context of a loyalty program? 50
IMPORTANCE OF DATA PRIVACY IN LOYALTY PROGRAMMES ITALY Everything similarly important. Transparency, ability to unsubscribe, rewards 62 34 5 Understandable terms and conditions 64 31 5 1 Transparency: how does the company use my personal data? 57 36 6 1 To be able to easily unsubscribe 53 39 7 2 48 41 8 3 To be able to see what kind of personal data the company collects To be rewarded when I allow the company to use my personal data for marketing reasons Quite important Rather important Rather unimportant Not important Base: Loyalty programme members (n=375); in % Q13: How important are the following factors for you when it comes to collecting personal data in the context of a loyalty program? 51
IMPORTANCE OF DATA PRIVACY IN LOYALTY PROGRAMMES POLAND Understandability and transparency are expected 64 57 39 3 1 Understandable terms and conditions 58 37 5 1 53 41 5 1 Transparency: how does the company use my personal data? To be able to see what kind of personal data the company collects 51 42 6 1 To be able to easily unsubscribe 41 44 12 3 To be rewarded when I allow the company to use my personal data for marketing reasons Quite important Rather important Rather unimportant Not important Base: Loyalty programme members (n=379); in % Q13: How important are the following factors for you when it comes to collecting personal data in the context of a loyalty program? 52
SUMMARY
MANAGEMENT SUMMARY Changes in retail NEW MARKETS 4 Due to digitalization, multi-channel development and new customer requirements commerce is going through a process of enormous change. MORE CUSTOMERS 2 NEW CUSTOMERS NEW PRODUCTS & SERVICES 3 These changes come along with changing shopper behaviour and thus new possibilities for targeting and engaging them. Comarch wants to take advantages of this change and strives to grow in the sector of customer centric marketing. TODAYS BUSINESS 1 LOYALTY & NEW SPEND With this study Comarch aims to investigate the future of retail shopping and customer expectations. Insights will be used for content marketing. MORE MONEY FROM EACH CUSTOMER 54
GROWTH SUMMARY Growth insights Recommendations for growth Shopping behaviour relates to age. The younger the shopper the more open towards online shopping and digital offers. Generally, shift of future shopping towards online- but across categories around 50% expect to shop offline. Considerable cross channel activities (offline shop/online research) Creates potential for online shopping: household equipment, TV/Hi-Fi, apparel. Potential for offline: DIY/home supplies and furniture/decoration, beauty Across all countries and all age groups individualisation and customisation by digital services is expected: Consider cross-channel shopping experience and further improvement of cross-channel processes Take into account age related usage of smartphones Start targeting younger age groups in relevant categories with both mobile and online services Stationary retail and online are both relevant target channels (younger will more often to online, older will more often stick to offline - with using the online benefits prior to purchase) Engage them with personalised offers 60% 50% 28% Concentrate communication on benefits of digital services (e.g. supportive, customized, savings) assume there will be personal digital advisors consider using in-store realt time personalised offers and navigation support consider using personalised offers near store 55
GROWTH SUMMARY Growth insights Recommendations for growth Currently low retailer loyalty (32-51% reg. diff. categories) To majority of shoppers positive shopping experience generates retailer loyalty - even across channels. Negative shopping experience with less impact Potential to grow retailer loyalty lies in creating positive shopping experience Focus on customer needs. Customised services benefical for loyalty both online and offline For up to 31% (in consumer electronics) customer-centric and supportive services provided by in-store shop assistant is relevant loyalty trigger. For up to 20% accurate/individualized offers is biggest trigger for offline retailer loyalty (and even more for online) In order to tie customers by loyalty, programmes focus on financial advantages Communicate clearly with members of loyalty programmes: when collecting personal data transparency is key Biggest triggers for loyalty memberships are offers/promotions and quality/quantity of rewards. Relevant loyalty triggers of younger age groups are also non-financial (such as product previews, gaming) Transparency in terms of usage of personal data is expected by loyalty card members 56
STUDY DETAILS Methodology Sample Field work Online interviews (in an online panel) 10-12 minutes 13 closed questions N = 3029 interviews UK (n=502), DE (n=507), IT (n=505) NL (n=505), CH (n=506), PL (n=504) Ocotber 6th - 21st, 2016 Target group Quotas according to representative distribution Population in the respective countries Online-representative Age: 18-65 Age and gender Region (4 splits) Missing to 100% does not buy resp. category, Base: Total (n=502); in %, Q4: Please think of a typical product of each of the following categories: Where do you inform yourself and where do you usually buy the product? 57
DEMOGRAPHICS PER COUNTRY TOTAL Great Britain Germany Switzerland Netherlands Italy Poland 10% 13% 13% 8% 11% 14% 12% 18-24 years AGE 22% 19% 21% 19% 20% 25% 21% 25-34 years 24% 22% 23% 24% 26% 20% 23% 35-44 years 24% 26% 24% 27% 23% 21% 24% 45-54 years 20% 20% 19% 22% 20% 20% 20% 55-65 years 53% 52% 50% 53% 52% 52% 52% Female GENDER 47% 48% 50% 47% 48% 48% 48% Male 45% 48% 50% 40% 47% 63% 49% Full-time EMPLOYMENT 18% 17% 22% 19% 16% 7% 16% Part-time 8% 14% 5% 3% 4% 11% 7% Retired 6% 9% 7% 9% 8% 9% 8% Student 23% 12% 16% 29% 25% 10% 20% Other Basis: Gesamt (n=3029); in % S1: Alter, S2: Geschlecht, S4: Beschäftigung 58
CONTACT US Headquarter Comarch Software und Beratung AG Riesstraße 16, 80992 München Tel. +49 89 1 43 29 0 Fax +49 89 1 43 29 11 14 Headquarter Comarch AG Chemnitzer Str. 59b, 01187 Dresden Tel. +49 351 3201 3200 Fax +49 351 438 97 10 Comarch is a global provider of IT solutions (ERP, CRM & Marketing, BI, EDI, ECM, ICT, Financials, Cloud solutions, etc.) for small and medium-sized enterprises, larger companies, banking & insurance, telecommunications, as well as healthcare. More than 5,400 employees work in numerous countries all over the world and about 2,000 of them deal with software development. Thanks to high investments in research and development, Comarch can offer a broad range of innovative IT solutions which are highly rated by both customers and analysts. Copyright Comarch 2017. All Rights reserved. www.comarch.de www.comarch.at www.comarch.ch