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    Multichannel retail survey Multichannel retail survey Document Transcript

    • Market Data / Supplier Selection / Event Presentations / User Experience Benchmarking / Best Practice / Template Files / Trends and InnovationMultichannel RetailSurvey
    • MultichannelRetail SurveyPublished September 2012 Econsultancy London Econsultancy New York 4th Floor, Farringdon Point Ste. 307, 350 7th Avenue 29-35 Farringdon Road New York, NY 10001All rights reserved. No part of this publication may be London United Statesreproduced or transmitted in any form or by any means, EC1M 3JFelectronic or mechanical, including photocopy, recording Telephone: Telephone:or any information storage and retrieval system, without +44 207 269 1450 +1 212 971-0630prior permission in writing from the publisher. http://econsultancy.comCopyright © Econsultancy.com Ltd 2012 help@econsultancy.com
    • Contents 1. About Econsultancy ......................................................... 1 2. Executive Summary ......................................................... 2 2.1. Methodology ................................................................................ 2 3. Findings ........................................................................... 3 3.1. Profile of respondents ................................................................. 3 3.2. Consumer demand for multichannel retail ................................ 4 3.3. Researching purchases online .................................................... 6 3.4. Use of reserve and collect services .............................................. 7 3.5. Response to a store not stocking a product ................................ 9 3.6. Checking products offline before buying online ....................... 11 3.7. Use of mobile .............................................................................. 12 3.7.1. Use of mobile phones for shopping ....................................... 12 3.7.2. Mobile websites versus apps.................................................. 14 3.7.3. Store location and opening times .......................................... 15 3.7.4. Price comparisons and product reviews ................................ 16 3.8. Multichannel returns .................................................................18 3.9. Use of catalogues ........................................................................19 Multichannel Retail Survey All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 1. About Econsultancy Econsultancy is a global independent community-based publisher, focused on best practice digital marketing and e-commerce, and used by over 400,000 internet professionals every month. Our hub has 130,000+ members worldwide from clients, agencies and suppliers alike with over 90% member retention rate. We help our members build their internal capabilities via a combination of research reports and how-to guides, training and development, consultancy, face- to-face conferences, forums and professional networking. For the last ten years, our resources have helped members learn, make better decisions, build business cases, find the best suppliers, accelerate their careers and lead the way in best practice and innovation. Econsultancy has offices in London, New York, Singapore, Sydney and Dubai and we are a leading provider of digital marketing training and consultancy. We are providing consultancy and custom training in the Middle East, and extensively across Europe and Asia. We trained over 5,000 marketers and ran over 200 public training courses in 2011. Join Econsultancy today to learn what’s happening in digital marketing – and what works. Call us to find out more on +44 (0)20 7269 1450 (London) or +1 212 971 0630 (New York). You can also contact us online. Multichannel Retail Survey 2012 Page 1 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 2. Executive Summary This report about multichannel retail is based on a TolunaQuick survey of 1,000 consumers in the UK and 1,000 consumers in the US, carried out by Econsultancy in August 2012. The results of the survey are compared, where relevant, to the results of a similar survey carried out by Econsultancy in 2011. The findings of the research can be summarised as follows: The demand for multichannel retail is high in the UK and US, with 87% and 85% of respondents in the UK and US respectively sometimes or always seeing the ability to purchase from a retailer from different channels as important. The younger the respondent, the more likely they are to see multichannel retail as very important. More than 90% of respondents in both the UK and US use the internet to research purchases before buying from a local store, highlighting the importance of positive customer reviews and an informative website with good usability. The latter statistic is being capitalised upon by those retailers using reserve and collect services. Large multichannel retailers in the UK, such as Argos, have seen these services account for a high proportion of their sales, and this survey shows that the number of respondents using the service in the UK is much larger than in the US. Collectively, 80% of UK respondents reserve products online, whereas only 55% of US respondents do the same. Survey respondents were also asked if they check products in store before buying online. More than 60% of respondents in both countries do this, possibly to take advantage of online offers or home delivery. A significant and emerging retail channel is mobile, and the survey asked respondents a number of questions about their use of mobile when shopping. Although the majority of respondents have not made a purchase using their mobile, the proportion having done so has doubled since the 2011 survey (from 13% to 25% in the UK, and 12% to 28% in the US). Again, it is the younger age groups who are most likely to use their mobiles for this information. The vast majority of respondents expect to be able to return items bought online to a local store, and the survey also found that the use of catalogues before an online or offline purchase is still prevalent, with just over 50% of respondents having done this in the past 12 months.2.1. Methodology Approximately 1,000 respondents in the UK and 1,000 respondents in the US took part in an online survey1 in July and August 2012. 1 Online survey carried out using TolunaQuick Multichannel Retail Survey 2012 Page 2 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3. Findings3.1. Profile of respondents One thousand people responded to the survey in both the UK and the US. Females made up 62% of the respondents, and males 38%. Figure 1: Gender of respondents (UK and US combined) Respondents: 2,000 The majority of respondents (41%) fell into the 35 – 54 age bracket, while 28% were aged 55+ and the remainder (31%) aged 18 – 34 years old. Figure 2: Age of respondents (UK and US combined) Respondents: 2,000 Multichannel Retail Survey 2012 Page 3 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.2. Consumer demand for multichannel retail In an age of multichannel marketing and multiple retail channels, the ability for consumers to purchase products from channels other than in-store is ever increasing. Survey respondents were asked if this ability was important to them, with the three options in Figure 3 available. In both the UK and the US, almost half of respondents did not feel strongly about the issue; 47% in the UK and 46% in the US felt that it would be ‘useful sometimes’, but not crucial. Only 14% of UK respondents and 15% of US respondents felt the ability to purchase from different channels ‘didn’t matter’. Figure 3: How important is it to be able to purchase from a retailer from different channels e.g. in a store, by mobile, online? Respondents: UK 999, US 1,000 Multichannel Retail Survey 2012 Page 4 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • When cross-tabulated by age of respondent, there is a trend showing that the younger therespondent, the more likely they were to see the ability to purchase from a retailer from differentchannels as very important. In both the UK and US, 53% and 45% (respectively) of 18 -34 yearolds thought the issue in question was very important, whereas only 28% and 29% of respondentsaged 55+ agreed.Figure 4: How important is it to be able to purchase from a retailer from differentchannels e.g. in a store, by mobile, online? (by age) Respondents: (18 – 34) 319, (35 – 54) 827, (55+) 553Multichannel Retail Survey 2012 Page 5All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.3. Researching purchases online It has been well documented that customer reviews influence sales 2. According to Reevoo, reviews produce an average of 18% in sales uplift, and 63% of customers are more likely to make a purchase from a site which has user reviews3. In this survey, respondents were asked if they research purchases online before buying from a local store. The vast majority of respondents sometimes or always research purchases before buying. Only 4% and 6% in the UK and US respectively never use the internet before an offline purchase. Figure 5: Do you research purchases on the internet before buying from a local store? Respondents: UK 1,000, US 1,000 2 http://econsultancy.com/uk/blog/9366-e-commerce-consumer-reviews-why-you-need-them- and-how-to-use-them/ 3 http://www.iperceptions.com/our-research/ Multichannel Retail Survey 2012 Page 6 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.4. Use of reserve and collect services Large multichannel retailers in the UK have successfully been using reserve and collect services to increase sales, notably Argos’ “Check and Reserve” service, which accounted for 29% of Argos’ £819m sales in Q1 2012. However, a recent survey by Ivis Group4 found that fewer than 50% of the UK’s top 50 retailers currently offer a click and collect service, and less than a quarter of these extend this service to mobile. Figure 6 shows that there are visible differences between results from the UK and the US, suggesting that UK retailers are adopting the service more readily than the US. The majority of UK respondents (60%) said that they have reserved products online before collecting them in store in the last 12 months, whereas only 38% of US participants responded in this way, and most respondents (46%) have never used a reserve and collect service. Only 20% and 17% of respondents in the UK and US respectively use these services regularly. Figure 7 shows the results from the same question in the 2011 survey, which revealed the same trend of UK customers being more likely to reserve items for in-store collection. Collectively, 80% of UK respondents reserve products online (up from 74% in 2011), whereas only 55% of US respondents (up from 42% in 2011) do the same. Figure 6: Do you reserve products online before collecting them in store? How often? Respondents: UK 999, US 1,000 4 http://www.ivisgroup.com/ Multichannel Retail Survey 2012 Page 7 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • Figure 7: Do you reserve products online before collecting them in store? Howoften? (2011 results for comparison) Respondents: UK 2,000, US 2,000Multichannel Retail Survey 2012 Page 8All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.5. Response to a store not stocking a product Respondents were asked for their reaction to a store not stocking the product they were looking for, which revealed that people were most likely to remain offline and look for the product at another local store if this occurred, followed by searching online when they get home. Figure 8 shows that few consumers would turn to their mobile in this situation, and that trends are similar across UK and US consumers. Figure 8: If the store doesn’t have the product you are looking for, which of the following would you do? Respondents: UK 998, US 2,000 Multichannel Retail Survey 2012 Page 9 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • The trends shown in Figure 8 are noticeably different from the results of the 2011 survey, shownin Figure 9. Respondents in 2011 were more likely to search for a product online when they gothome if the store didn’t have the product, above looking for the product at another store. Thiscould be seen as somewhat surprising, suggesting that the tendency of respondents to use theinternet to find products has decreased since the last survey.Figure 9: If the store doesn’t have the product you are looking for, which of thefollowing would you do? (2011 results charted for comparison) Respondents: UK 2,000, US 2,000Multichannel Retail Survey 2012 Page 10All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.6. Checking products offline before buying online The majority of respondents check products in store before buying online, with the results being very similar for both US and UK respondents. Figure 10: Do you check products in store before buying online? Respondents: UK 999, US 998 Multichannel Retail Survey 2012 Page 11 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.7. Use of mobile3.7.1. Use of mobile phones for shopping M-commerce is widely reported to be increasing rapidly, exemplified by the difference in Figures 11 and 12, which show the proportion of respondents who have used their mobile to make a purchase in 2012 and 2011 respectively. In the UK, the number responding that they have has almost doubled from 13% in 2011 to 25% in 2012. Likewise in the US, those responding “yes” have gone up by 16%. Although the majority of respondents have never made a purchase using their mobile, it could be expected that with the number of smartphones increasing and the perceived safety of m-commerce improving, the proportion of people using their mobiles to make purchases will continue to grow. Figure 11: Have you made a purchase using your mobile? Respondents: UK 999, US 999 Figure 12: Have you made a purchase using your mobile? (2011 results for comparison) Respondents: UK 2,000, US 2,000 Multichannel Retail Survey 2012 Page 12 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • Compared to the age of the respondents, it is clear that the younger the respondent, the morelikely there are to have used their mobile to make a purchase, both in the UK and the US. This islikely to be due to the share of smartphone audience being disproportionately represented by 25 –34 year olds5.Figure 13: Have you made a purchase using your mobile (results charted by agegroup) Respondents: (18 – 34) 619, (35 – 54) 826, (55+) 5535www.comscore.com/Press_Events/Press_Releases/2012/6/Majority_of_Tablet_Users_Watch_Video_on_their_DeviceMultichannel Retail Survey 2012 Page 13All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.7.2. Mobile websites versus apps Mobile websites are still dominant over apps when shopping on a mobile device according to the respondents of the survey. In the UK, 68% of consumers surveyed would prefer to use a mobile website, compared to 33% of respondents who would prefer an app. Results were similar in the US, where slightly more respondents would prefer to use an app. Figure 14: Do you prefer to use a mobile website or an app? Respondents: UK 1000, US 1000 Multichannel Retail Survey 2012 Page 14 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.7.3. Store location and opening times The use of mobile as an offline shopping aid represents an increasing challenge for retailers wanting to capitalise on the number of consumers who now have smartphones, and therefore have access to a wealth of retailer and product information while shopping offline. Although those using their mobile to find more information on retailers’ stores are still in the minority, the proportion doing so has increased since the 2011 survey; in the UK from 25% to 32%, and in the US from 27% to 41%. Figure 15: Have you used your mobile to find a retailer’s nearest store, opening times etc? Respondents: UK 999, US 999 Multichannel Retail Survey 2012 Page 15 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.7.4. Price comparisons and product reviews Another example of consumers using mobile as an offline shopping aid, comparing prices and looking at reviews of products while shopping offline is clearly on the increase according the results of the 2011 and 2012 surveys. In the UK, the proportion of respondents using their mobile in this way has gone up by almost a quarter, from 19% to 43%. Similarly, in the US those responding yes have increased even further; from 20% to 50%. Figure 16: Have you used your mobile to compare prices and look at product reviews while out shopping? Respondents: UK 998, US 999 Figure 17: Have you used your mobile to compare prices and look at product reviews while out shopping? (2011 results for comparison) Respondents: UK 2,000, US 2,000 Multichannel Retail Survey 2012 Page 16 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • Again, it is the younger age groups who are most likely to use their mobile to compare prices andlook at product reviews while shopping offline.Figure 18: Have you used your mobile to compare prices and look at productreviews while out shopping? (2012 results charted by age) Respondents: (18 – 34) 319, (35 – 54) 826, (55+) 553Multichannel Retail Survey 2012 Page 17All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storageand retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.8. Multichannel returns The vast majority of both US and UK respondents expect to be able to return items bought online to a local store. This proportion was similarly high in the 2011 survey. However, a report by Snow Valley6 in the same year found that just half of the multichannel retailers studied actually allow customers to do this. It may be that the respondents of this survey would ideally like to be able to return an online-bought item through an offline channel, but may not in reality expect to be able to do this. Figure 19: If you buy something online from a retailer do you expect to be able to return it to a local store? Respondents: UK 1000, US 1000 6 http://blog.micros-ecommerce.com/snow-valley-e-commerce-reports/ Multichannel Retail Survey 2012 Page 18 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012
    • 3.9. Use of catalogues The use of catalogues before an online or offline purchase is still prevalent in the UK and US, with the majority of respondents in the UK (56%) and US (51%) having used catalogues at least once in the past year before a purchase. Figure 20: How often do you use catalogues before buying online or in store? Respondents: UK 1,000, US 1,000 Multichannel Retail Survey 2012 Page 19 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2012