Transcript Document

2012 Shopper Study Overview
Retail Without Boundaries
©2012, Cognizant
Study Summary
| ©2012, Cognizant
Our third annual, 2012 Shopper Experience Study
respondents reflect the typical mix of retail shoppers
4,000 Shoppers
Around the World
Respondent Geography Respondent Income Group
US
Canada
UK
Australia
Hong Kong
China
Respondent Age Group
Low Income
Middle
Income
High
Income
Respondent Gender
18-33
34-45
Male
46-64
Female
65 and over
On-line survey conducted April 12 – April 22, 2012
| ©2012, Cognizant
Retailers must devise their shopper experience
strategies based on the shoppers they serve
ONE size does NOT fit all
3
| ©2012, Cognizant
Retail without Boundaries is about knocking
down the walls.
| ©2012, Cognizant
Shoppers love to shop anytime, anywhere and
through any channel, but especially at stores
4 out of 5puchases
occur in stores
and
the most influential factors are:
1
#2
#
Price
Product
“Showrooming” (browsing in a store and then purchasing online through a smart
phone, tablet or PC) is the number one risk facing retailers today. The key to
winning with shoppers today is to enable “Retail without Boundaries”.
5
| ©2012, Cognizant
Shoppers have high expectations for in-store
execution
“How much do you dislike each of the following when
shopping in a store for products?”
Some of the highest scores across the study are related to how much customers
dislike when stores fall short on execution.
| ©2012, Cognizant
Sales in digital channels are growing— varied
by category—and influencing in-store sales.
“What percentage of your annual purchases for each of the following types
of goods do you make through the following channels?”
Although the lion share of sales still take place in stores, retailers must create digital
experiences that both support in-store purchases as well as digital commerce.
| ©2012, Cognizant
Higher income shoppers are most inclined to
use digital channels
% of Purchases by Channel
% of Purchases by Channel Split by Type of
Product for High Income Shoppers
100%
70%
60%
50%
40%
30%
20%
10%
0%
80%
60%
40%
20%
0%
Lower Income Middle Income Higher Income
In-Store
Online
Mobile
Other
In-Store
The highest income shoppers
are more likely to use digital
channels
8
| ©2012, Cognizant
Online
Mobile
They are most likely to use
digital channels for the
purchase of specialty
products
Other
The basics for creating digital experiences that
shoppers want are similar to stores
“How much do you dislike each of the following
experiences when shopping online?”
Cannont return the product to a store
3.8
Payment method you like is not available
3.6
Too many steps or too much information is required to
check out
3.7
The shipping options you prefer are not available
3.3
No order online and pick-up in store
3.1
Online price or promotions/discounts are different from
what's available in-store
3.8
Purchase price not communicated clearly or early enough
4.0
Ability to compare different products is not available
3.4
The product information you need is not available
4.0
You can't find the product you want using the website's
search engine navigation
3.9
1
2
3
4
Shoppers increasingly expect online and in-store experiences to be consistent.
| ©2012, Cognizant
5
Key Shopper Study Themes
10
| ©2012, Cognizant
There are four themes essential to becoming a
retailer without boundaries
Showrooming
can be a
retailer’s
“frenemy”
Are you
keeping up
with the
Jones' or
investing in
the future?
Retail
Without
Boundaries
How personal
can you get
without being
creepy?
11
| ©2012, Cognizant
Store
associates are
a retailer’s
brand
ambassador…
for better or
worse
With the right shopper strategy
showrooming can become your
“frenemy”
Showrooming
Jones’?
Retail
without
Boundari
es
Personal
ization
Differentiated
Experiences
Customer Service
Product, Price,
Promotion
Location
12
| ©2012, Cognizant
Associat
es
Factors that influence purchase decisions are
consistent across segments and channels
The top five influencers
of in-store purchase
decisions are
unanimously agreed
upon by all shopper
segments:
Competitive price, promos, etc.
Right product selection
Customer Service (quality/access)
Fast, easy check-out
Compelling loyalty program
Rank Order
1
2
3
4
5
Online shoppers value the same retail fundamentals.
However, they rank return processing higher (#3) and
compelling loyalty programs lower (#8).
13
| ©2012, Cognizant
How purchase decisions are being influenced
is changing and varies based on product type
“In a typical month, how often do you use the following resources to help you
make informed purchase decisions of products in the following category(s)?”
TV is continuing to
lose ground
Significant
differences between
specialty and
consumables for
traditional resources
Mobile and tablet
are still nascent
| ©2012, Cognizant
Specialty
product
purchases are
more influenced
by digital
experiences
The best way to stop showrooming is to give
shoppers what they want.
The two essential elements to combat the risk of
showrooming is to match prices and provide exceptional
customer service.
29%
Of shoppers want store
associates to match prices
35%
Of shoppers want store associates to
have better customer service skills
Equipping store associates with mobile technologies is the
second line of defense.
14%
Of shoppers want store
associates to be more
available in the aisles
15
| ©2012, Cognizant
10%
Of shoppers want store associates to
have real-time access to product
information, inventory and ordering
Experimenting with new shopper experiences
will endear shoppers and differentiate retailers
“For the product category(s) shown below, how important it is for you that your favorite
stores work with the following types of partners to provide you with better experiences,
more products, or more specials/promotions?”
2.1
Product Comparison Smartphone App
2.5
2.0
Geo Location
2.3
2.7
2.8
Member Discount
Female
Male
2.5
2.7
Group Buying / Deals
2.2
2.3
Social Networking/Media
1
2
3
4
5
Surprisingly, men are more interested in some of the newer mobile and social retail
experiences. Shoppers are most interested in member discounts (e.g. Beyond the
Rack and Ideeli) closely followed by group buying sites (e.g. Groupon and Living
Social). These trends are consistent with 2011.
16
| ©2012, Cognizant
Store associates are a retailer’s
brand ambassador…
for better or worse
Showrooming
Jones’?
Retail
without
Boundari
es
Personal
ization
Help with purchase decisions
Help find product
“Go to” person for issues
17
| ©2012, Cognizant
Associat
es
Shoppers rely predominantly on traditional resources
to help with purchase decisions, excluding store
associates
Resources Used to Help with Purchase Decisions
Digital Resources
Store Associates
Store Signs
Product Packaging
Word-of-Mouth
Traditional Advertising
19%
Store associates is
the only traditional
resource that
ranks very low
across all
segments as a
preferred resource
to help with
purchase decisions.
11%
10%
13%
22%
25%
Age 18-33
13
%
16
%
18
18
%
18
25 %
%
| ©2012, Cognizant
Age 34-45
Age 46-64
7%
9%
10
%
9%
12
%
19
%
23
28 %
%
9%
22
%
23
30 %
%
Age 65 and
over
9%
5%
7%
8%
20%
27%
33%
When shoppers can’t find what they want,
most likely they’ll look elsewhere
At first glance, it’s
affirming that nearly
50% of shoppers ask
for help when they can’t
find what they’re
looking for…on the
other hand more than
25% buy the product
elsewhere--13% of 1833 year olds use their
mobile phones to do so.
What do you do when you
can't find what you want?
Leave the store and
look for the same
product elsewhere
9%
Leave the store and
look for the same
product during a
future visit
20%
49%
Ask an associate to
help you locate the
right item
Ask an associate to help
you locate the right item
65 and over
46-64
6%
Purchase an
alternative item
available in that store
5%
11%
Use your mobile
phone to identify the
product elsewhere
34-45
18-33
0%
19
| ©2012, Cognizant
20%
40%
60%
80%
When shoppers have a problem, retailers
might never know about it.
“When you have a problem while shopping in a store (e.g. product availability, poor customer
service, out of stocks, etc.) indicate whether you are unlikely to report it.”
65 and over
11%
46-64
10%
34-45
Younger shoppers are
unlikely to report
store issues
13%
18-33
21%
0%
20
| ©2012, Cognizant
5%
10%
15%
20%
25%
When shoppers do seek help, nothing beats a
live person.
In-store associates are
the most likely
resource for shoppers
to seek when they need
help. Younger
shoppers especially are
increasingly gravitating
toward digital channels
(e.g. social media,
mobile text and chat)
for help
“When you need assistance while shopping, how likely are you to
use the following customer service options?”
Social media page
Call customer service
#
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
-
Go to in-store
customer service desk
Mobile text message
| ©2012, Cognizant
34-45
46-64
Online chat
Mobile chat
21
18-33
Video chat
65 and over
Showrooming
How personal can you get
without being creepy?
Jones’?
Retail
without
Boundari
es
Associat
es
Personal
ization
#1
22
| ©2012, Cognizant
Personalized
in-store
experiences
- Versus -
Resistant to
sharing personal
information
Personalization is a proven tactic to increase
shopper engagement.
Personalized in-store
experiences (e.g. promotions,
#1
offers, preferences customized
based on past purchases or
status etc.) was ranked the
most desired feature by
shoppers in North America
23
| ©2012, Cognizant
Above all, shoppers want to be recognized and
uniquely appreciated while in stores.
“When shopping for specialty products, how much would each of the following
techniques to personalize your shopping experience influence your shopping choices, if
available?”
-
1.00
2.00
3.00
Special treatment in the store based on loyalty
3.44
Offers delivered in a store that are personalized
3.17
Acknowledgement of status as a highly valued customer
while in the store
3.15
Website recommendations based on other products you
searched for
2.91
E-mails with personalized messages
2.88
Website recommendations based on products others have
searched for
2.76
Personal greeting in the store
Offers delivered via a mobile phone that are personalized
4.00
2.72
2.26
The top three personalization techniques that will influence shoppers’ choices are
about enhancing the in-store experience.
24
| ©2012, Cognizant
5.00
Shoppers are skeptical about sharing
information
“How willing are you to share the following information with stores in order to
have a more personalized shopping experience?”
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00
Information tracked by loyalty number
2.89
Name, address, e-mail for website account
2.69
E-mail collected at point of sale
2.60
Phone number collected at point of sale
2.26
Have cookies placed on your computer to allow
tracking
1.86
Locations you are at tracked using geo location
service on your phone
1.83
Information tracked by credit card number
1.82
Shoppers are
especially resistant
to sharing
information when
it is tied to their
personal property
Although shoppers want personal experiences, they have boundaries around how
much information they’re willing to share in exchange for those experiences. Highest
income shoppers are most willing to share information where as older shoppers are
least likely.
25
| ©2012, Cognizant
Are you keeping up with the Jones'
or investing in the future?
Retailer mobile and
tablet apps are the
least favored
resources
Digital assets as an
enterprise resource
is the next frontier
26
| ©2012, Cognizant
Showrooming
Jones’?
In APAC social
media is a leading
influencer of
purchase decisions
Everyone LOVES
Facebook
Retail
without
Boundari
es
Personal
ization
Associat
es
Shoppers go to digital resources first when
shopping for specialty products.
Rank order of resources used to make
purchase decisions for specialty products
Retailers’ investments
in mobile phone and
tablet apps aren’t
paying off…yet.
Other Internet
searches and
websites
Store’s website
3.0
2.5
2.0
1.5
1.0
0.5
-
Store’s tablet
27
| ©2012, Cognizant
Other Internet searches and websites
Store’s website
Print materials
Information provided on product packaging
Television
Shelf signs or interactive product displays
Friends and family
Store associates
Social media
Store’s mobile smartphone app
Store’s tablet
Store’s mobile
smartphone
app
Consumables
Specialty
Retailer mobile and
tablet apps are the
least favored resources
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
Many digital trends are moving east to west--APAC
has become an indicator of where to invest
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
China
Hong Kong
North America
Comments aboutOther customers’
online ratings
the product on
social media
and reviews
sites (e.g.
Facebook)
28
Australia
U.K.
China
Hong Kong
North America
Australia
U.K.
Pay Pal and Bill Digital Wallet
Me Later
via a Personal
Mobile Device
| ©2012, Cognizant
Although North American
Shopper’s social influence lags
APAC, there’s every evidence that
the influence of social will only
grow in North America.
Mobile payment ranks dead last by
a large margin for shoppers in
North America, yet shoppers in
APAC are ready.
Leveraging digital assets in stores is the next
frontier
Although cross channel integration and interactive experiences are not
yet demanded by shoppers, customers will respond to them—especially
those who are ages 18-45.
3.6
3.5
3.4
3.3
3.2
3.1
3
2.9
2.8
2.7
All Shoppers
Shoppers Age 18-34
Interactive
experiences (e.g.
digital kiosks or
signs, interactive
product displays)
Consistent
experiences and
information on
websites, on mobile
devices and in the
store
Poor quality information is the leading dissatisfier for
online shoppers. If retailers can cleanse their online
data and extend it for use in stores, they’ll be two
steps ahead
29
| ©2012, Cognizant
Unclear Information
Cannot Find Product
Undesirabel Policies
Difficult to Purchase
Lack Cross Channel
Integration
Lack advanced Web
Features
1
2
3
4
5
6
Shoppers expect retailers to extend their brands
through social media, especially Facebook
It is important for shoppers’ favorite stores to have a presence on social
networking sites to provide better experiences, more products, and
specials/promotions
2.9
3.0
Other
2.8
2.8
MySpace
3.4
3.4
Blogs
Specialty
3.1
3.1
Pinterest
Consumables
3.2
3.2
Twitter
Facebook is the only
technology driven
retail experience
where shoppers age
65 and over
expressed a strong
interest
4.1
4.2
Facebook
1
2
3
4
5
Shoppers want to engage with their favorite brands via
social media, not shop on social site.
Exclusive promotions/sales
New products sneak peak
Feedback on products
Customer Service
Fun, interactive experiences
Social responsibility
Make a purchase
30
| ©2012, Cognizant
Rank Order
1
2
3
4
5
6
7
Thank You
Please contact Rachel Cosby at [email protected]
to request a customized briefing of the Shopper Study results
or a copy of the detailed global shopper research results.
31
| ©2012, Cognizant