2010 Shopper Research Study

“The Intelligent Store”Findings from a survey of shoppersPresented by Cognizant
June 2010
Steven Skinner
Vice President, Cognizant Business Consulting
Retail, Hospitality and CPG Practice Leader

Your Meeting Facilitator – Steven Skinner
My Job Today:
Facilitate your discussion so that you achieve maximum learning
The Method To My Madness Today:
Present you summary primary research data of a shopper study Cognizant recently completed
Provide you with detailed documentation including some secondary research to support your group conversations
Define discussion scope and organize you into conversation groups
Have each group deliver a 5-10 minute discussion in the larger group setting
I will type up the notes from each group and send to you electronically along with the survey data
Your Responsibilities:
Discuss the data, its implications and what actions companies should take
Document your discussions

First Things First: Cognizant 2010 Consumer Research Overview
Objective:
To better understand how consumers interact with retail stores and the overall customer experience
Methodology:
An online survey was conducted among adults 18+ across the United States
A total of 2,243 completed surveys was collected May 21-25, 2010
The data was also segmented by gender, income and generation. For the purposes of this report, the generations were defined as the following age groups:
Gen Y = 18-33
Gen X = 34-45
Baby Boomers = 46-64
Emerging Elders = 65+
Respondent Profile:
Gender: 83% women and 17% men
Average age: 46.8
Average household income: $65,548

Cognizant 2010 Shopper Survey Summary – All Shoppers
Anywhere Cross Channel Is In
73% want cross channel at store checkout
53% want cross-channel from a in-store kiosk
Poor Service is (of course) out
74% cited as first or second choice (checkout)
Manual Coupon Redemption is an irritant
2nd highest checkout irritant
Mobile Services are not a panacea
Only 1% want mobile device checkout!
Coupon, price and product look-up drive use

Cognizant 2010 Shopper Survey Summary – Gender Analysis
Out of Stock– Men are from Mars….
andprefer a 10% voucher
Out of Stock – Women are from Aisle One…
and prefer free home delivery
Males Need Help!
33%chose poor associate knowledge as top store irritant
Both Hate Online / In-Store Price Discrepancies:
3rd highest store irritant
Newspapers are not Dead…yet
Both prefer grocery product information from newspaper ads

Cognizant 2010 Shopper Survey Summary – Generational Analysis
Emerging Elders and their Emerging Cross-Channel Sophistication
41% want “buy in-store and deliver to home” service
The Internet and the Store Meet
Generation X and Y identify cross-channel price conflicts as their 3rd highest store irritant
Generation X and Y want cross channel consistency
these age segments were the most sensitive group to channel price conflicts
Mobile Services for Gen X and Y moving faster (Doh!)
…but they still get most product information from store shelves

7
Cognizant 2010 Shopper Survey Summary – Income Analysis
Well, maybe radio advertising will die instead of newspapers
Only 1% of shoppers across all income groups received product via the radio
We’ve heard this story before
31%of high income shoppers chose poor associate product knowledge the #1 store irritant
What was that you said?
82% of the high income shoppers want coupons on their mobile devices – more than any other income segment
High Income Shoppers want cross-channel remedies also
27%want home delivery of an out of stock product – their #1 choice

Strategic Imperatives for Retailers and Focus Areas within Stores
All the initiatives that made the high-priority list are well defined software projects with tangible ROI calculations. In 2010 progress ranges from POS to merchandising and supply chain. However, the survey suggest that investment plans for 2011 look very strong.
Source: RIS Retail Technology Study 2010
A retail CIO typically can devote about 30 to 35 percent of the IT budget to new initiatives. The rest of the budget is required to maintain and upgrade existing systems.
Cost reduction and margin enhancements along with Same store sales. Retailers will focus on standardizing their core set of store processes and focus on Customer retention.
Source: NRF Horizons Report 2009-2010

Shopper Customer Experience Survey Questions
“If a store is out of a product you seek, which of the following would you MOST want the retailer to do to remedy the situation?”
1
“Which aspect of the check-out process at a store do you dislike the MOST?”
2
“Which of the following service offerings do you MOST value from a store?”
3
A) “If a retailer offered its own online social network (similar to others such as Facebook, MySpace or Twitter), please indicate how likely you would be to visit it using the 10-point scale below?”
B) “If a retailer provided access to a centralized pool of associates who would be available to customers via live video feeds, please indicate how likely you would be to use this service?”
4
5
“Which ONE of the following characteristics do you dislike the most in a store?”
“If a retailer offered the following services for a personal mobile device, please indicate how likely you would be to use them?”
6
“If each of the following were available, which would be your MOST preferred (and SECOND most preferred) method to receive product information?”
7
“Rank the following store characteristics in the order of how much you dislike them”
8
“If a retailer offered the following new or alternative payment methods, please indicate how likely
you would be to use them?”
9
“From which of the following do you get MOST of your information for the product types – Apparel, Grocery, Home goods
10

Ordering an out of stock item from the register and getting it home-delivered at no extra charge was the most popular retailer remedy among shoppers
1
Most
Second most

Female customers prefer deliver to home versus a 10% off voucher
Gender
Based Analysis
1
Male population would prefer the discount coupon and come back to the store later.

Generation Y prefers discount vouchers to other remedy forms
Generation
Based Analysis
1

The high income customer prefer cross channel fulfillment, Product substitution is preferred among low income groups.
Income
Based Analysis
1

1
Ordering an out of stock item from the register and getting it home-delivered at no extra charge was the most popular retailer remedy among shoppers
Female customers prefer deliver to home versus a 10% off voucher.
Generation Y prefers discount vouchers to other remedy forms.
Store should be capable of handling ‘Out of stock’ conditions  should be highly integrated with backend systems such as Order Management, Sourcing and Logistics
The high income customer prefer cross channel fulfillment, Product substitution is preferred among low income groups.

Inattentive cashiers were the single most disliked aspect of the check-out process at stores
2
Most
Second most

Gender
Based Analysis
Manual coupon rebate processes are a source of high store environment dissatisfaction among women and men.
2
Training needs to be continually focused on cashiers as they are the frontline of customer service

Generation
Based Analysis
Across Generations “Inattentive Cashiers” were the most disliked aspect
during the check out process
2

Income
Based Analysis
Across All Income groups “Inattentive Cashiers” & “Mail Rebates” were
the disliked aspects during the check out process
2

2
Manual coupon rebate processes are a source of high store environment dissatisfaction among women and men
Across Generations “Inattentive Cashiers” were the most disliked
aspect during the check out process
Across All Income groups “Inattentive Cashiers” & “Mail Rebates” were the disliked aspects during the check out process
Checkout should not be neglected by retailers as customer form opinion based on their experience here  Point-Of-Sale should transform to Point-Of-Service

Online Returns and Mobile purchases were not as valued among shoppers
3
Most
Second most

Gender
Based Analysis
Store returns and delivery scored high among females as desired store service offerings.
3
Males prefer home delivery from an in-store purchase to other service offerings along with in-store pickup.

Generation
Based Analysis
Emerging Elders want the convenience of in-home delivery
3
Mobile solutions surprisingly lagged most store services throughout the survey.

Income
Based Analysis
Shoppers identified more traditional service offerings as the ones
they most valued from a store
3

3
Online Returns and Mobile purchases were not as valued among shoppers
Store returns and delivery scored high among females as desired store service offerings.
Emerging Elders want the convenience of in-home delivery
Shoppers identified more traditional service offerings as the ones they most valued from a store
Customers are looking forward to better service in terms of product pickup and return  Retailer needs to concentrate on Cross-Channel Integration
Areas where retailers need to invest for future growth New channels such as mobile and online returns

Shoppers are unlikely to visit a retailer’s online social network or access a retailer’s associates via live video feeds
4
Average Ratings On Scale of 1–10 (1 = Very unlikely to use, 10 = Very likely to use)
Utilizing the services of popular social networking sites is a better option than building a new social networking site by retailers

Gender
Based Analysis
Proprietary retailer social networks are not favorable in general with males or females.
4

Generation
Based Analysis
Generation Y and Generation X are more likely to visit proprietary retailer social networks, potential indicating a future shift as this demographic ages.
4

Income
Based Analysis
Irrespective of the income groups, retailer owned social networking
site was not a feature desired by Shoppers
“If a retailer offered its own online social network (similar to others such as Facebook, MySpace or Twitter), please indicate how likely you would be to visit it using the 10-point scale below?”
4

Gender
Based Analysis
Neither female nor male customers are likely to access a centralized pool of associates via live feeds
4
12%
11%

Generation
Based Analysis
Associates interacting with customers via live video feeds doesn’t seem to be popular among any generation
4
12%
13%
12%
10%

Income
Based Analysis
Associates interacting with customers via live video feeds doesn’t seem to be popular among any income class
4
13%
12%
12%
13%
13%
13%
10%

4
Shoppers are unlikely to visit a retailer’s online social network or access a retailer’s associates via live video feeds
Online Social Network
Utilizing the services of popular social networking sites is a better option than building a new social networking site by retailers
Proprietary retailer social networks are not favorable in general with males or females.
Generation Y and Generation X are more likely to visit proprietary retailer social networks, potential indicating a future shift as this demographic ages.
Centralized Pool of Associates
Neither female nor male customers are likely to access a centralized pool of associates via live feeds
Associates interacting with customers via live video feeds doesn’t seem to be popular among any generation or any income class
Social media is a big influencer in customer decision process  Retailers need to tap this to connect with the customer
Trend shows customer does not want to try new channels and is happy with the present social channels

Shoppers most disliked a store being out of stock on a product. However, running a close second among dislikes were store associates with poor product knowledge
5
Inattentive cashiers, slow cashier check-out and poor associate product knowledge point to a need to improve store-level training

Gender
Based Analysis
Males would prefer store associates with a higher level of product knowledge.
5
Cross-channel price mismatch dissatisfaction demonstrate shoppers are savvy on multi-channel price levels as well as delivery options.

Generation Y and Generation X are more sensitive to cross-channel price discrepancies than other age groups.
Generation
Based Analysis
5
Baby Boomers, Generation Y and Generation X are more sensitive to out of stock than other poor store attributes.

Among the High Income shoppers, Store associates with poor product knowledge is the most disliked characteristic
Income
Based Analysis
5

5
Shoppers most disliked a store being out of stock on a product. However, running a close second among dislikes were store associates with poor product knowledge
Males would prefer store associates with a higher level of product knowledge
Generation Y and Generation X are more sensitive to cross-channel price discrepancies than other age groups
Online refunds and online promotion mismatch are disliked mostly by customers in higher income group
Customers demand better service at stores  Improve Store efficiency , Better Workforce Management (Scheduling, Task management, Training)

Coupons rated the highest among mobile services that shoppers would be most likely to use
6

Gender
Based Analysis
While mobile services rated low through most of the survey, integrating coupons, price and product look-up significant increased shopper likelihood to leverage their PDAs in-store.
6
Female
Male

Generation
Based Analysis
Gen-Y and Gen-X shoppers are more likely to use mobile devices. This could portend that while mobile device leverage has rated low through the survey, expectations of PDA use will increase as these groups age and technology grows more convenient.
6

Income
Based Analysis
Respondents with household income of $200,000+ use mobile devices the most for all the services. This can be attributed to the “affordability” factor
6
Interestingly, high income shoppers are also most likely to use coupons

6
Coupons rated the highest among mobile services that shoppers would be most likely to use
While mobile services rated low through most of the survey, integrating coupons, price and product look-up significant increased shopper likelihood to leverage their PDAs in-store.
Gen-Y and Gen-X shoppers are more likely to use mobile devices. This could portend that while mobile device leverage has rated low through the survey, expectations of PDA use will increase as these groups age and technology grows more convenient.
Respondents with household income of $200,000+ use mobile devices the most for all the services. This can be attributed to the “affordability” factor
Mobile Commerce is the next big thing that retailers are focusing to connect with tech savvy customer  Improves Customer Service by providing customers to shop using mobile devices

Traditional methods were the clear-cut most preferred way to receive product information – ranking in the top three
7
Most preferred
Second most preferred
Preference #1 reinforces the need to continually improve associate product knowledge
Dynamic displays interesting were more preferred than online shopper feedback.

Gender
Based Analysis
Female shopper are more likely to get information from the store signs & cards and through online customer feedback while male shoppers are likely get information from informed store associates
7
Female
Male

Generation
Based Analysis
Emerging elders prefer to receive product information through traditional methods such as “from store associates”. However online customer feedback and mobile product scanning access are almost as preferred as product packaging for Generations X and Y.
7

Income
Based Analysis
Shoppers with household income >$200,000 receive product information using personal mobile devices while those with HH income<$25,000 rely on product package for info
7

If each of the following were available, which would be your MOST preferred (and SECOND most preferred) method to receive product information?”
7
Traditional methods were the clear-cut most preferred way to receive product information
Female shopper are more likely to get information from the store signs & cards and through online customer feedback while male shoppers are likely get information from informed store associates
Emerging elders prefer to receive product information through traditional methods such as “from store associates”. However online customer feedback and mobile product scanning access are almost as preferred as product packaging for Generations X and Y.
Shoppers with household income >$200,000 receive product information using personal mobile devices while those with HH income<$25,000 rely on product package for info
In-store Marketing (Price and Promotion Management, Better Shelf Management) helps customer shopping in store

When asked to rank order negative store characteristics, shoppers most disliked: 1) stores refusing to provide cash refunds and 2) prices being different between the store shelf
and/or promotion and cash register
“Rank the following store characteristics in the order of how much you dislike them?”
8
Ranked by Average Score (1 = Dislike the most, 7 = Dislike the least)

Gender
Based Analysis
Male customers are more unhappy compared to female customers when it comes to POS displaying different price and returns not being accepted at another store
8

Generation
Based Analysis
Across generations accurate Price Labeling and Returns Management seem more important than Store environment issues
8

Income
Based Analysis
Returns Management seems to be a major issue among high income customers while Poor Promotional/Pricing signage is an issue with low income customers
8

8
When asked to rank order negative store characteristics, shoppers most disliked: 1) stores refusing to provide cash refunds and 2) prices being different between the store shelf and/or promotion and cash register
Male customers are more unhappy compared to female customers when it comes to returns not being accepted at another store, disorganized store and POS displaying different price
Emerging Elder generation dislikes music being too loud, poor promotional signage, cluttered store - more compared to the other generations
Compared to lower income groups, higher income groups are more dissatisfied with returns not being accepted a) in different store of the retailers b) without receipts
Return process need to be more streamlined. Retailers should also look at store aesthetics to draw customers.

Coupons were the overwhelming favorite among shoppers when offered as an alternative payment method
9
Average Ratings On Scale of 1–10 (1 = Very unlikely to use, 10 = Very likely to use)

Gender
Based Analysis
Female and male shoppers preferred paying by coupons followed by loyalty cards
9

Generation
Based Analysis
Payment with mobile devices is a potential growth area in the Gen Y
customer segment
9

Income
Based Analysis
Customers are more likely to use mobile devices as an alternative form of method as their income increase
9

9
Coupons were the overwhelming favorite among shoppers when offered as an alternative payment
method
Payment with mobile devices is a potential growth area in the Gen Y customer segment
Customers are more likely to use mobile devices as an alternative form of method as their income increase
Retailers to focus on Coupon and Loyalty management  reiterates need for better customer service

Overall, the Internet, newspaper and word-of-mouth (family/friends) is where shoppers obtain most of their product information for apparel, grocery and home good items
“From which of the following do you get MOST of your information for the below product types?”
10

Gender
Based Analysis
Female shoppers are more likely to get information from the internet while male shoppers are likely get information from the informed store associates during apparel shopping
“From which of the following do you get MOST of your information for apparel products?”
10
Female
Male

Generation
Based Analysis
While Gen-Y shoppers use internet the most for information on apparel products, they also rely on information from family and friends
10

Income
Based Analysis
Shoppers with household income >$200,000 receive product information using catalogs and magazines. This can be attributed to the high-end fashion apparel that this category of shoppers typically purchase
10

Gender
Based Analysis
While male shoppers prefer internet to get information on home products female shoppers prefer to get it from family and friends
10
“From which of the following do you get MOST of your information for home products ?”
Female
Male
While female shoppers prefer using internet for apparel male shoppers use internet for home products

Generation
Based Analysis
Emerging elders prefer to receive product information through traditional methods such as “from store associates” and “newspaper ads”
“From which of the following do you get MOST of your information for home products?”
10
Interesting fact is that ‘baby boomers’ use internet to get product info much more than ‘Gen-X shoppers’
The trend of ‘increasing interaction with family & friends’ from elders to Gen-Y is worth noticing

Income
Based Analysis
The low income group shoppers rely on TV Ads and family & friends much more than the other segments
“From which of the following do you get MOST of your information for home products?”
10
The high income group also relies on store associates more than the rest

Gender
Based Analysis
Both male and female shoppers prefer to get information on grocery products from newspaper ads. But male shoppers get information from store associates more than female shoppers
“From which of the following do you get MOST of your information for the grocery products?”
10
10
Female
Male

Generation
Based Analysis
Though newspaper ads is the preferred method to get grocery product info across all generations, the % of Gen-Y shoppers getting info from newspaper ads is less when compared to other generations
“From which of the following do you get MOST of your information for the home products?”
10
Gen-Y shoppers getting info about grocery products from family & friends is an interesting fact

Income
Based Analysis
Shoppers across all income groups prefer to get grocery product info from the newspaper ads
10

10
Female shoppers are more likely to get information from the internet while male shoppers are likely get information from the informed store associates during apparel shopping
While Gen-Y shoppers use internet the most for information on apparel products, they also rely on information from family and friends
Emerging elders prefer to receive home products information through traditional methods such as “from store associates” and “newspaper ads”
The low income group shoppers rely on TV Ads and family & friends much more than the other segments for info on home products
Though newspaper ads is the preferred method to get grocery product info across all generations, the % of Gen-Y shoppers getting info from newspaper ads is less when compared to other generations
Retailers need to target customers through the right media as current customer is “Informed customer”

www.cognizant.com

2010 Shopper Research Study

by Cognizant

Accessibility

Categories

Upload Details

Usage Rights

1 Embed 1

Statistics

2010 Shopper Research Study Presentation Transcript