2011 shopper experience survey

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Results from a 2011 survey of shoppers globally.

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2011 shopper experience survey

  1. 1. 2011 Shopper Experience Survey Steven Skinner Vice President – Cognizant Business Consulting June 2011| ©2011, Cognizant
  2. 2. 2011 Shopper Experience Study Second Annual Shopper Experience Study Joe Skorupa Group Editor-in-Chief RIS News jskorupa@edgellmail.com joeskorupa@twitter risnewsinsight@twitter RIS News @Facebook RIS News @LinkedIn www.risnews.com To download full study: www.risnews.com/research1 | ©2011, Cognizant
  3. 3. 2011 Shopper Experience Study Methodology – North America • 2,427 shoppers in U.S. and Canada • 70% female to 30% male to mirror influence in buying decisions • Age groups are split into four large segments with a slight bias toward baby boomers • Income group breakout matches the overall population picture2 | ©2011, Cognizant
  4. 4. 2011 Shopper Experience Study Methodology - Global • 1554 shoppers in Singapore, Hong Kong, UK and China • 69% female to 29% male • Age groups biased toward the younger segments • Income groups biased towards the lower segments based on the lower per capita incomes • Japan not covered due to timing of their natural disaster • Global aspects of survey not covered in today’s presentation3 | ©2011, Cognizant
  5. 5. First Things First… How well do you know Generation Y? Yes, the winner gets a very nice door prize!4 | ©2011, Cognizant
  6. 6. What We Learned The Shopping experience is becoming disaggregated Retailers must teach the new ways of shopping5 | ©2011, Cognizant
  7. 7. What We Learned The future of shopping is upon us 20th Century Shopping 21st Century Shopping• Easy to brush aside shopper • The whole world knows instantly complaints • Full and instant access to all• Variability of pricing not known your offers or understood • Independent third parties put• You were the only source of offers together information • Everything is 24 x 7• Everything was time-boxed • Virtual shopping and social-• Everything is seen and touched based decision making• Task workers • Knowledge workers• Dumb in-store assets • Interactive in-store assets• Focus on fundamentals • Focus on fundamentals Retailers must re-integrate the shopping experience6 | ©2011, Cognizant
  8. 8. 2011 Shopper Experience Study What is the shopper experience? Research Shop Transact Post Sale7 | ©2011, Cognizant
  9. 9. Research Indiana Jones “We do not follow maps to buried treasure and X never, ever marks the spot.” – Indiana Jones8 | ©2011, Cognizant
  10. 10. Research What did we learn? • Social Media is not the dominant driver of decision making • “In the box” still dominates • Retailer mobile solutions seemed to regress in preference • Web-based out-of-store research is preferred • Coupons, coupons, coupons Carefully understand the social media hype9 | ©2011, Cognizant
  11. 11. Research Traditional methods (at least from the last 10 years) still hold sway Prior to making a purchase decision, what step are you most likely to use to ensure you have all the relevant information Web Research (PC) 24% Manufacturer Website 20% Family & Friends 17% Coupons.Com 15% Shopping Comparison Site 12% Shopper internet research Smart Phone Research 6% dominates, but… Social Networking 5% 0% 5% 10% 15% 20% 25% Social media lagged across all study segments10 | ©2011, Cognizant
  12. 12. Research “What’s on the box” is still important If each of the following were available, which would be your preferred method to receive product information From better information on the product package 66% From signs or cards on the store shelves 61% From an informed store associate 57% Through a dynamic display that provides product 33% Through review publications such as Consumer 31% Reports By reading online customer feedback on the store 27% site or third-party social media platform By scanning the product with your personal mobile 24% device 0% 10% 20% 30% 40% 50% 60% 70% Large growth Generation Y skews high on from 2010, but mobile usage still lags11 | ©2011, Cognizant
  13. 13. Research And the preference for in-store information has increased year over year If each of the following were available, which would be your preferred method to receive product information From better information on the product package 2011 From signs or cards on the store shelves 2010 From an informed store associate Through a dynamic display that provides product Through review publications such as Consumer Preference, Reports not usage By reading online customer feedback on the store site or third-party social media platform By scanning the product with your personal mobile device Preference for Technology-assisted service regressed year over year12 | ©2011, Cognizant
  14. 14. Research There’s no overwhelming preference to use mobile methods to conduct research If a retailer offered the following services for a mobile device, indicate how likely you would be to use them on a scale of 1 to 10 Coupons 5.9 Product and price lookup 5.3 Ability to instantly use loyalty program 5.3 Product comparisons 5.3 Store locator 5.2 Ability to place an order 5.1 View your status/points in the store loyalty 5.0 Ability to receive location, personalized or 4.7 1 2 3 4 5 6 7 8 9 10 But momentum is certainly growing from last year13 | ©2011, Cognizant
  15. 15. Research Have shoppers been turned off by the retailer mobile experience to-date? If a retailer offered the following services for a mobile device, please indicate how likely you would be to use them using the 10-point scale 5.9 Coupons 7.0 5.3 Product and price lookup 6.6 5.3 Product comparisons 6.0 2011 5.2 Store locator 6.2 2010 5.1 Ability to place an order 5.9 View your status/points in the 5.0 store loyalty program 5.6 1 3 5 7 9 This was a startling statistic from the survey14 | ©2011, Cognizant
  16. 16. Research But as with all things retail, you need to know who your customer is If a retailer offered the following services for a mobile device, indicate how likely you would be to use them on a scale of 1 to 10 4.6 5.3 6.3 Coupons 7.3 3.7 4.7 Product and price lookup 5.9 7.0 4.3 4.9 Ability to instantly use loyalty 5.7 6.4 3.9 4.7 Product comparisons 5.7 Emerging Elders 6.7 3.9 4.6 Baby Boomers Store locator 5.8 6.7 Gen X 4.2 4.7 Ability to place an order 5.5 Gen Y 6.1 3.8 4.4 View your status/points in the 5.5 6.2 3.6 4.2 Ability to receive location, 5.1 6.0 1 2 3 4 5 6 7 8 When do you chase “Generation Y” behavior & attitude?15 | ©2011, Cognizant
  17. 17. Research What you may not have known • Time is money - higher incomes prefer web research • Your mom reads the newspaper - 40% of females use when shopping for groceries • Internet is best, but word of mouth a close second for apparel info • Discount/deal sites preferred to geo location sites for all groups16 | ©2011, Cognizant
  18. 18. Shop Stephen Wright “I went to a general store but they wouldn’t let buy anything specific” – Stephen Wright17 | ©2011, Cognizant
  19. 19. Shop What did we learn? • In-Stock Position is King • The Basics Still Rule • Shoppers Want Technology-Enabled Associates • Cross-channel Price Inconsistency Is an Irritant • Poor Associate Knowledge Shopper sophistication is increasing rapidly18 | ©2011, Cognizant
  20. 20. Shop Dislike of channel price differentiation growing Which of the following experiences do you dislike most when shopping in a store? Out of Stock 73% Slow Checkout 67% Store Assoc With Poor Knowledge 47% No Cash Refund 30% Diff Price (Store vs Online) 28% Diff Promo (Store vs Online) 18% Not Accept Return without Receipt 13% Not Accept Return from Another 12% No Refund for Online Purchase 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% Price differentiation makes theoretical sense, but…19 | ©2011, Cognizant
  21. 21. Shop Generation Y is even more sensitive to price inconsistency Which of the following experiences do you dislike most when shopping in a store? 72% 77% Out of Stock 72% 72% 66% 69% Slow Checkout 65% 67% Emerging Elders Baby Boomers 61% 50% Gen X Store Assoc With Poor Knowledge 43% 37% Gen Y 20% 21% Diff Price (Store vs Online) 34% 38% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Are we creating disloyal generation Y customers20 | ©2011, Cognizant
  22. 22. Shop Execution issues indexed higher than all others Which of the following experiences do you dislike most when shopping in a store? you get to the cash register, it rings up the 85% regular price, or a different price Store is difficult to navigate through -- too 73% cluttered, and/or with poor access to aisles Poor promotional signage no clear way to 69% know what is on sale 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Shopper expectations are increasing each year21 | ©2011, Cognizant
  23. 23. Shop Shoppers are telling you how to fix the poor associate knowledge problem In general, which of the following would you most like to see improved among store associates? Ability of store associates to match 68% competitive online prices Improved customer service skills enabled by 64% technology More store associate engagement in the 58% aisles with check-out processing capabilities Better electronic access to product 53% information, inventory location and ordering Better product knowledge enabled by smart 27% phone, tablet technology and digital signage More multi-lingual store associates to support 9% your local area 0% 10% 20% 30% 40% 50% 60% 70% 80% Knowledgeable assisted sales drive transaction size22 | ©2011, Cognizant
  24. 24. Shop What you may not have known • Emerging Elders have almost twice the dislike of unknowledgeable store associates than Gen Y • Gen Y’s do their homework – 38% dislike difference between store and on-line price • Facebook tied with Groupon, at least for the Gen Y’s • Personalized store experience – more important for men than women • Women have a lower tolerance than men for poor store service • Older shoppers consistently have higher expectations of store associates23 | ©2011, Cognizant
  25. 25. Transact “Ive never felt like I was in the cookie business. Ive always been in a feel good feeling business. My job is to sell joy. My job is to sell happiness. My job is to sell an experience.” – Debbi Fields24 | ©2011, Cognizant
  26. 26. Transact What did we learn? • Mobile Payments are not a shopper priority… • …but in Europe and Asia Pacific it is! • Coupon management is a huge sore customer pain point • Slow check-out remains an enigma Europe and Asia are driving a new transactional model25 | ©2011, Cognizant
  27. 27. Transact Time is money, for you and your customers Which aspect of the check-out process at a store do you dislike? The wait in line 56% Slow or inattentive cashiers 48% Products without stock numbers having to 43% A barcode that does not work at check-out 39% 0% 10% 20% 30% 40% 50% 60% Probably nothing new here…26 | ©2011, Cognizant
  28. 28. Transact Mobile Payments – not ready for prime time Which aspect of the check-out process at a store do you dislike? Not being able to use a personal mobile device to checkout 5% 0% 10% 20% 30% 40% 50% 60% How likely would you be to pay using a personal mobile device 2.5 Emerging Elders 3.1 2011 3.1 2010 Baby Boomers 4.0 4.2 Gen X 4.6 5.2 Gen Y 4.7 1 3 5 7 9 Standards and customers in US are not ready27 | ©2011, Cognizant
  29. 29. Transact Yet preferences in other countries suggest its coming How likely would you be to pay using a personal mobile device China 7.7 Hong Kong 6.8 Singapore 6.8 UK 4.2 Research alert! There is a global North America 3.7 version of this. 1 2 3 4 5 6 7 8 US-Based Global retailers need a mobile payments strategy28 | ©2011, Cognizant
  30. 30. Transact Bad shopping experiences drive higher profit. Shouldn’t we feel bad about that? Which aspect of the check-out process at a store do you dislike? Getting the manufacturer discount by having to mail in the rebate 52% coupon after purchasing the product 0% 10% 20% 30% 40% 50% 60% Can you think of a bad experience at an Apple store?29 | ©2011, Cognizant
  31. 31. Transact Shoppers want simple coupon redemption and no paper If a retailer offered the following new or alternative payment methods, how likely would you be to use them? Coupons/gift cards 8.3 Pay using a mini store loyalty card 5.7 that attaches to your key ring PayPal or other third-party online services that allow payments to be 5.3 made through the Internet) -wallet service with 4.2 pre-filled out credit authorization Pay using a personal mobile device 3.7 0 2 4 6 8 10 Digitizing coupon management is the next frontier30 | ©2011, Cognizant
  32. 32. Transact Everyone wants a better coupon management system How likely would you be to pay using alternative coupons/gift cards Emerging Elders 8.0 Baby Boomers 8.4 Gen X 8.4 Gen Y 8.4 1 2 3 4 5 6 7 8 9 Fast check-out, happy customers. Seems reasonable.31 | ©2011, Cognizant
  33. 33. Transact What you may not have known • No refund, how big a deal? – lowest dislike of all choices • Level of income has little bearing on like/dislike of mobile methods • Emerging Elders have almost twice the dislike of a ‘price check’ than gen Y • Gen Y’s more sensitive to wait in line than Emerging Elders, yet more accepting of ‘self checkout’ • Men more likely than women to pay using mobile devices or 3rd party services32 | ©2011, Cognizant
  34. 34. Post Sale “Give your clients the earliest delivery consistent with quality - whatever the inconvenience to us. - Arthur C. Nielsen33 | ©2011, Cognizant
  35. 35. Post Sale What Did We Learn? • Cross-Channel Fulfillment is now “Table Stakes” • Mobile commerce lags • Nothing beats a live voice or person • A bad experience is now communicated to thousands Post-sale execution is even more critical to loyalty34 | ©2011, Cognizant
  36. 36. Post Sale Multi-Channel is now expected by shoppers Which store service offerings do you value 1st and 2nd Ability to purchase a product in the store and have it delivered to 57% your home at no extra charge Ability to automatically redeem a retailer or manufacturer coupon 46% Ability to purchase a product online and pick it up in the store 43% Ability to purchase a product online, have it delivered to your 36% home, and return it (if needed) to the store Ability to purchase a product in the store and return it (if needed) 9% using online procedures Ability to purchase a product via a personal mobile device and pick 6% it up in the store Ability to purchase a product via a personal mobile device, have it 3% delivered to your home, and return it (if needed) to the store 0% 10% 20% 30% 40% 50% 60% Mobile Commerce not yet demanded however35 | ©2011, Cognizant
  37. 37. Post Sale When things go wrong shoppers still want to talk to a live body If a retailer provided access to customer service/product representatives how likely would you be to use this service Phone assistance 6.4 Text/Call to receive Live Associate 5.1 Text assistance 4.6 Video assistance 4.2 1 2 3 4 5 6 7 When you have an issue in-store, which means of communication are you most likely to use? Ask to speak with the Store Manager 6.8 6.2 the retailers website or mobile site 5.6 Post comments to your personal social networking network 4.2 (i.e. friends and family) Post comments on retailer pages within social networking 4.0 sites (i.e. Facebook, Twitter) 1 2 3 4 5 6 7 8 9 1036 | ©2011, Cognizant
  38. 38. Post Sale Generation Y uses newer methods to connect If a retailer provided access to customer When you have an issue in-store, service/product representatives how likely would which means of communication are you most you be to use this service likely to use? 6.4 Phone assistance Ask to speak with the 6.1 6.4 Store Manager 6.8 Text/Call to receive Live 6.3 Associate assistance 5.1 Send an email to the Gen Y Only retailer through the 6.2 5.9 6.2 Text assistance All Shoppers retailers website or 4.6 4.8 5.2 Video assistance customer service Gen Y Only 4.2 5.6 number All Shoppers 1 3 5 7 9 Post comments to your personal social 5.0 networking network (i.e. 4.2 friends and family) Post comments on retailer pages within 4.7 social networking sites 4.0 (i.e. Facebook, Twitter) 1 3 5 7 937 | ©2011, Cognizant
  39. 39. Post Sale What you may not have known • Cash is king, at least for women - More likely to want a cash refund than men • Gen Y more likely to try alternative customer service contact methods, but phone is still #1 • Older shoppers quicker to go to the store manager, but younger shoppers not that far behind • Gen Y will make their displeasure more widely known via Facebook, Twitter and other sites38 | ©2011, Cognizant
  40. 40. “Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity.” – General Patton39 | ©2011, Cognizant
  41. 41. The 10 Megatrends we highlighted last year Taking Off • Taking the Store to the Shopper • Shopper Demand for Consistent Cross-Channel Experiences Drives Retailer Organizational Integration • Distributed order management Integrates the Retailer • Social Media and Product Development Collide • The Death of the Task Worker • Generation Y Changes the Behavior of All Other Generations40 | ©2011, Cognizant
  42. 42. The 10 Megatrends we highlighted last year Still Emerging • Sales and Product Information via Mobile Phone • Mobile Shopping (Finally) comes of age • Death of POS becomes a possibility • Real SKU Rationalization Takes Hold41 | ©2011, Cognizant
  43. 43. A Final Thought “A good plan violently executed now is better than a perfect plan executed next week.” Tech-assisted associates & coupons leap to the planning front.42 | ©2011, Cognizant
  44. 44. About CognizantA leading provider of information technology,consulting, and business process outsourcingservicesWith more than 50 global delivery centers and over110,000 employees*, we help clients transform coreprocesses for greater flexibility, higher efficiency andlower costs. Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000 and Fortune 500. We are also ranked among the top information technology companies in BusinessWeek’s “InfoTech 100, Hot Growth and Top 50 Performers.” *as of March 31, 201143 | ©2011, Cognizant
  45. 45. Thank you If you would like the detailed Global Shopper Experience Study - Please contact: Rachel Cosby at rachel.cosby@cognizant.com| ©2011, Cognizant

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