Despite stores across Europe and the UK reopening and those in the US staying open, shoppers are turning more and more to mobile technology to enhance and secure their shopping experience – reshaping retail forever.
Conducted before and during the pandemic, a new study commissioned by Periscope by McKinsey – Retail reimagined: The new era for customer experience – reveals three consumer trends: the appetite for digital is surging with no signs of slowing down, brand loyalty remains vulnerable, and a new premium on safety and convenience.
In addition, the report shows a significant gap between what consumers want in shopping experience and what retailers are actually providing.
Consumers want tech-forward shopping experiences
Whether it’s digital tools such as screen browsing, easy mobile payments, or ordering online with seamless kerbside or in-store pickup, shoppers clearly want technology to elevate their in-store experience.
The flight to digital and increased customer expectations have created new challenges for how retailers serve their customers.
Yet, in the first run of our survey, more than 35% of shoppers reported zero exposure to even the most talked-about or basic in-store technologies such as digital screen browsing and mobile or contactless payments.
In the second run of the research in June, consumers were then asked which forms of communication/experience they would like to see offered by retailers in the near future.
The top findings in each market revealed a clear difference in cultural preferences.
In the UK 34% are making mobile app orders, 28% are using mobile payments and 24% self-identification at terminal. In Germany 29% are using mobile payments, 21% self-identification at terminal and 20% apps to scan barcodes.
In France, 22% are using mobile payments, 21% mobile apps to order and 21% digital shelf labels for info.
In the US, mobile payments are leading the way with 30% of transactions; 28% are making mobile app orders and 25% are using apps to scan barcodes.
An end to ‘normal’ shopping decisions
Rather than sticking to familiar patterns and brands, consumers have embraced change amid great uncertainty. In the four countries surveyed, 40% of consumers said they tried new brands or made purchases with a new retailer between March and June 2020. Loyalty was particularly vulnerable in the US, where 46% of consumers made the switch, followed by 44% of their UK counterparts.
Consumers’ top reasons for making the switch across all four markets included competitive pricing and empathetic retailers that support their employees during the pandemic with initiatives such as increasing wages, giving extra sick leave, or paying for lost wages.
Safety and convenience become even more critical
New concerns such as safety and hygiene are now top of mind. More than 50% of respondents say they want stores to follow guidelines to help keep shoppers and employees safe, such as the installation of plexiglass at the checkout, the use of masks, and availability of hand sanitisers, while 59% say it’s important for stores not to be too crowded.
Also, frictionless experience is now even more important. Consumers being able to find what they’re looking for quickly and easily has increased in importance in every country – by 14% in the UK, 11% in the US, 10% in Germany, and 7% in France – since March.
It was also ranked among their top three browsing priorities. This ability was especially valued by 65% of US consumers, 59% of UK consumers, 52% of German consumers, and 47% of French consumers.
Additionally, 52% of shoppers questioned in early June stated that fast checkout was an important part of a great purchasing experience.
New e-commerce expectations
E-commerce spending has surged during the shutdowns, as the appetite for digital and contactless ways of shopping has intensified. In the US, it was up more than 30% from the beginning of March through mid-April, compared to the same period the previous year.
In all four countries surveyed, we observed higher shopping activity in several categories during the shutdowns. Categories with the biggest uptick were apparel (in the US and UK), children’s products (US, UK, Germany), beauty (US), and grocery (US).
While free delivery and returns and fast delivery continue to be the important features for consumers when purchasing online, several digital attributes did skyrocket in value during the crisis.
The importance of informative product descriptions and clear product images at a time when consumers couldn’t see, feel, or test products in a store ranked as one of the top three factors for a great online browsing experience in all the countries surveyed.
UK consumers led the charge with 70% of post-shutdown respondents ranking this as a key consideration (up 23% from pre-shutdown), followed by 57% in Germany (up 12%), 56% in the US (up 13%), and 51% of French shoppers (up 13%).
“While disruption and fierce competition are certainly nothing new for retailers, the pace and intensity of COVID-19-related change and their effect on consumers is unprecedented,” says Brian Ruwadi, Senior Partner and Global Leader of Periscope by McKinsey. “This is a pivotal time where we’re seeing not only changing loyalties and a shifting leaderboard, but an opportunity to really connect with consumers in new ways as they reformulate their habits and decision journeys. As retail leaders plot how they will bounce back, they also need to look beyond the immediate challenges and issues. In parallel to quickly recovering revenue, it is critical to engage in long-term planning and accelerate future growth.”
via https://AiUpNow.com August 26, 2020 at 04:19AM by Paul Skeldon, Khareem Sudlow,
