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These 5 Data Points Can Help Retailers Keep Pace With Shifting Consumer Demands |
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A consulting firm’s survey finds shoppers expect online and in-store price consistency, increased product availability in shops, and fast and free delivery. |
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Getty Images With the holiday shopping underway, retailers wanting to ring up a maximum number of prospective sales would do well to bone up on the continuing shifts in shoppers’ expectations. To help them, the global business advisory AlixPartners just released a survey of 9,000 consumers that offers store owners a better idea of what customers want, along with some profitable ways to respond to them. AlixPartners released its Consumer Sentiment Index on Thursday, the latest edition of a recurring report it first produced in 2009. Its data comes from respondent opinions on how retailers are performing on five key shopping criteria: product, price, access, service and experience. Though the study was made with a particular focus on the fashion and luxury sectors that many AlixPartners clients work in, the main findings offer lessons that all retailers can benefit from. One key takeaway is that while consumers are increasingly accustomed to doing their product and price research online, they also consider products they find in stores critical to making a final purchase. Too much discrepancy in variety, availability, and pricing between a retailer’s e-commerce platform and brick and mortar shops frequently sours potential customers. Indeed, 66 percent of respondents said they bolt when a desired product is absent from stores, and take their business to a competitor. “Consumers may be shopping digital channels first, but they are back in stores and incredibly frustrated when pricing is inconsistent or they can’t find in-store what they saw online,” said Sonia Lapinsky, an AlixPartners’ managing director. “Retailers need to reallocate resources to what matters for consumers—nailing the seamless experience and getting the right product in the right place. It’s crucial for retailers to hit the mark this season, or consumers will take their dollars elsewhere.” For example, the index noted Macys.com features 24,000 women’s tops, but stocks only 2,500 of those in its New York City flagship Herald Square store. The Gap outlet at the same location stocks just 50 tops and tees, compared to 158 offered online. With storage space in brick-and-mortar shops too limited to carry full inventories, Lapinsky says retailers need to scrutinize what goods draw the most interest online, and anticipate them being in high demand when customers visit. “They’ve got to get really smart about where the customer is going and what they’re looking for,” Lapinsky told CNBC. “(A)nd they do that with better analytics, potentially AI models, that are predicting what the customer wants.” Other major findings in the survey that retailers may find helpful include: Consistent Pricing: Nearly 90 percent of respondent said a clear, fair, and reliable pricing policy is a major driver in finalizing purchases, with 85 percent calling identical prices for the same goods on e-commerce platforms and in-store important. That means frequent discounts to encourage sales during slower periods, as well as dynamic pricing amid surges quickly becomes problematic. The reason? Those fluctuations eventually leave many consumers feeling stores are incessantly and arbitrarily switching prices on them. “No, You May Not Help Me”: The survey found most respondents do their shopping research online before coming to stores. For that reason, most don’t want to deal with salespeople trying to steer them to anything. Less than 40 percent of participants said interacting with a retail employee affects their buying decision, while 85 percent said just being left on their own is a positive influence toward finalizing a purchase. Shipping, But How? Fully 85 percent of respondents said free shipping and returns of items bought online—or those not immediately available in stores—is a must in making a purchase. But 86 percent also said fast shipping and returns were decisive sales clinchers. That not only means retailers are expected to foot those delivery costs, but also keep transport times under 3.5 days—commonly cited as the most they’re wiling to wait for an order. When both of those demands aren’t fulfilled, 25 percent of survey participants said they take their business to a retailer who will. Subtract Add Ons: One way retailers may compensate for those free and fast delivery costs is to evaluate whether the time and money they invest in add on services are worthwhile. According to the survey, programs offering options like non-shopping experiences, recycling programs, buy-now-pay-later, and social shopping are only appreciated by an average 60 percent of respondents. While that’s still over half, the influence of those programs in driving customers to stores—and making purchases there—may not be worth the cost and complexity of those offerings. “Retailers have spent the last decade experimenting with new strategies to differentiate themselves in an ever changing industry,” the report noted. “However, it isn’t clear that add on services that are in place are enticing enough for new customers to be worth the investment.” What do 1.4 million mystery shopper say With our database of 1.4 million mystery shoppers, we are able to crowdsource their opinions on our client’s behalf. They rate the following practices high on their expectations. Friendly greeting Smile AND eye contact Product knowledge Good assortments Making me feel appreciated as a customer Inviting me to return What are your customer service required deliverables? Are they being delivered on a consistent bases? Give us a call, we’re here to help you measure your team’s relationship building. Services
BRUCE CRUMLEY AND CARL PHILLIPS |
