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The growth and maturity of digital channels have steadily increased the
expectations of the consumers, who now look for an integrated shopping
experience across all their touch points with a retailer – be it an online comparison,
a feedback from social media, a delivery system, or an in-store experience.
An Infosys study reveals retail insights from 1,000 consumers and 50 retailers
across the United States. Key highlights include the need for consistency in
brand interaction across channels, rising expectations for personalization among
consumers, and how retailers are focusing on providing seamless omni-channel
shopping experiences.
Rethinking Retail
Insights from consumers and retailers into an omni-channel shopping experience
The effect of consistency across retail organizations
A majority of consumers see consistency
of numerous facets of retail operations
as important across both physical
and online stores and across different
physical branches. Consistency in the
range of products available, is regarded
as important, by 72% of respondents
for physical and online stores and by
77% across different physical branches.
Similarly, consistency in the location of /
ease of finding products is important for
68% of respondents across physical and
online stores and 75% of respondents
across different branches. Consistency of
customer service is important to a majority
of consumers across physical and online
(69%) and across different branches (74%),
as are offers / promotions (68% physical
and online; 71% across different branches)
and appearance / branding of stores
(64% physical and online; 66% across
different branches).
Less than two-fifths (39%) expect their
personal information / purchasing history
to be consistent across different branches
of a brand, while a slightly higher number
(44%) expect this across physical and
online stores. Despite this, a majority
(86%) said that personalization has at least
some impact on what they purchase, and
one-quarter (25%) say personalization
significantly influences what they
purchase.
Just over two-thirds (69%) of respondents
say a retailers’consistency across various
channels affects their loyalty to a brand.
Surveyed consumers are more likely to say
that a high level of consistency would
keep them loyal (44%) and a lack of
consistency turning them off a brand
(38%). More than three-fifths (62%) say
consistency has an effect on their tendency
to spend with a brand; consumers are
more likely to say that a retail brands’lack
of consistency would see a reduction in
spend (39%).
Consumers
59%
of shoppers
who have
experienced
personalization
believe it has
a noticeable
influence on
purchasing
Almost one-third (31%) of surveyed
consumers wish their shopping experience
was more personalized than it currently
is. Currently one-fifth (20%) have never
experienced any kind of personalized
offers / promotions based on previous
purchases, while 19% have never
experienced product recommendations
based on previous purchases.
One-fifth of respondents (20%) have
encountered personalized offers /
promotions in-store while just over one-
quarter (27%) have seen these online.
Almost twice as many say they have
experienced product recommendations
based on previous purchases online (32%)
compared to in-store (18%).
Of those who have experienced
personalization, the majority are highly
in favor of personalized coupons (67%),
personalized offers / promotions based on
previous experiences (62%) and product
recommendations based on previous
purchases (58%). A majority (86%) of
respondents who have experienced
personalization say that this influences
what they purchase to some extent,
including one-quarter (25%) saying
personalization significantly influences
what they purchase.
At least half of all respondents are highly
in favor of personalization for groceries
(56%), entertainment (53%), health and
beauty, (51%) and electronics (50%), while
a significant proportion are highly in favor
of personalization with regard to clothing
(47%), pharmaceuticals (42%) and
furniture / gardening / do-it-yourself
(DIY) (41%).
Personalization
Discovering new products and
impulse buying
A whopping majority of consumers surveyed (92%)
look to discover new products. In fact, a majority
discover new products via personal research (59%)
and through advertising (58%). However, a majority
of consumers (96%) also expect retailers to inform
their customers of new products to some extent.
Almost three-fifths of respondents (59%) interact
with brands and/or retailers online. The two websites
most commonly selected are Facebook followed
closely by the brand / retailer website. Of those who
interact with brands online, almost nine in ten (89%)
say brand interaction has at least some impact on
their purchasing habit.
A majority of surveyed consumers (90%) admit to
impulse buying at least occasionally. Half (50%) say
they are more likely to impulse buy in-store, with less
than one fifth (16%) saying they are more likely to do
so online.
89%of shoppers who
engage with
retailers via social
media channels say
those interactions
have an impact on
their purchasing
choices
Consistency across retail
organizations
A majority of surveyed retailers deliver
consistency through a variety of aspects
across both physical and online stores and
different retail branches. A fairly high level
of consistency in the range of products
available is delivered by more than half
(56%) across physical and online stores and
by 68% across retail branches.
Other aspects vary across physical and
online stores and different retail branches;
consistency in appearance / branding of
stores is currently delivered by 50% of
surveyed retailers for physical and online
stores, but by four-fifths (80%) across
different physical branches. Similarly, just
over half (56%) say offers / promotions are
delivered consistently across physical and
online stores; this increases to 78% across
different stores.
Almost two-thirds (64%) of surveyed
retailers believe their consumers’shopping
experience should be more personalized.
Despite this, less than half (48%) say
information about customers’purchasing
history is consistent across physical and
online stores and the same number (48%)
say this is consistent across different stores.
A majority of surveyed retailers (90%)
believe consistency across their brand’s
engagement points has an effect
on customer loyalty; the majority of
interviewed retailers are more likely to
say a high level of consistency would
keep a customer loyal (70%) rather than
a lack of consistency turning them off a
brand (46%). Similarly, a majority (92%) of
retailers said that consistency has an effect
on customers’tendency to spend; surveyed
retailers are more likely to say that high
level of consistency would see an increase
in customer spend (62%).
Retailers
90%retailers believe
consistency across their
brand’s engagement
points has an effect on
customer loyalty
Despite almost one-fifth of surveyed
retailers (18%) not having or planning
any kind of personalization, a majority
of surveyed retailers (96%) believe
personalization influences what consumers
purchase to some extent, with over half
(56%) saying this significantly influences
consumer purchases.
Almost two-thirds of surveyed retailers
(62%) currently offer personalization and
a further fifth are planning to implement
this technology. Of those who offer
personalization, almost half (48%) offer
personalized offers / promotions based
on previous purchases online, compared
to only 3% in-store. Similarly, only one in
ten (10%) offer product recommendations
based on previous purchases in-store but
almost two-fifths (39%) offer this online.
Of those who currently offer
personalization, all (100%) have
experienced at least one benefit from this
technology. The four most commonly cited
benefits are an increase in sales (74%),
an increase in profit (61%), an increase
in online traffic (58%) and an increase in
customer loyalty (55%), all reported by the
majority.
Of those who are planning to introduce
personalization, less than half (44%) would
expect to see an increase in profit. The
three most commonly reported answers
are an increase in online traffic (89%), an
increase in sales (67%), and an increase in
customer loyalty (56%).
Personalization
Consumers are
three times
more likely
to impulse
buy in-store
than online
Almost all surveyed retailers (98%) believe
interaction has at least some impact on
customers purchasing habits. Similarly,
a majority (92%) say their customers
interact with their brand online. The two
most common ways of doing this are via
the brand / retailer website (80%) and
Facebook (66%).
•	 Integrating the customer experience
Seven in ten respondents (70%) have at
least one factor preventing them from
creating a more integrated customer
experience within their organization,
with lack of technology being the most
common (38%).
	 Nine in ten (90%) believe a single
customer view is important to some
extent, with over two-fifths (42%) saying
this is very important. However, almost
one-quarter (22%) of surveyed retailers
do not currently go about creating a
single customer view. This being said,
Data collection and monitoring
the majority create a single customer
view through clicks online (64%) and
purchases across stores (54%).
•	 Monitoring trends
Just over one-third (34%) currently
monitor trends in real-time, while
almost two-fifths (38%) are planning to
do so. Of those who currently monitor
trends in real-time, a majority are
able to monitor the products that are
popular with a particular demographic
(82%), products that are popular in a
particular region (71%), and products
which are popular online (71%).
	 Almost nine in ten surveyed retailers
(84%) collect consumer interaction
data. On an average, 37% of consumer
interaction data collected by retailers is
used for upstream buying / assortment
planning. Less than half (45%) of
these retailers share this consumer
information with suppliers.
Lack of
technology
is the most common
factor (38%)
preventing retailers
from creating a more
integrated customer
experience within
their organization
© 2013 Infosys Limited, Bangalore, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice.
Infosys acknowledges the proprietary rights of other companies to the trademarks, product names and such other intellectual property rights mentioned in this document. Except as expressly permitted,
neither this documentation nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printing, photocopying, recording or
otherwise, without the prior permission of Infosys Limited and/ or any named intellectual property rights holders under this document.
About Infosys
Infosys is a global leader in consulting, technology and outsourcing solutions. We enable clients, in
more than 30 countries, to stay a step ahead of emerging business trends and outperform the
competition. We help them transform and thrive in a changing world by co-creating breakthrough
solutions that combine strategic insights and execution excellence.
Visit www.infosys.com to see how Infosys (NYSE: INFY), with $7.4B in annual revenues and 160,000+
employees, is Building Tomorrow's Enterprise® today.
For more information, contact askus@infosys.com www.infosys.com
Research Methodology:
Infosys commissioned independent technology market research specialist Vanson Bourne to undertake the research on which this report
is based. Two sets of interviews were conducted in December 2013, the first consisted of 1000 interviews with consumers in the US and the
second consisted of 50 interviews with marketing decision-makers in retail with more than 300 physical stores.
Interviews were conducted online and by telephone using a rigorous multilevel screening process to ensure that only suitable candidates
were given the opportunity to participate.

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Infosys: Reinventing Retail Report 2014

  • 1. STUDY The growth and maturity of digital channels have steadily increased the expectations of the consumers, who now look for an integrated shopping experience across all their touch points with a retailer – be it an online comparison, a feedback from social media, a delivery system, or an in-store experience. An Infosys study reveals retail insights from 1,000 consumers and 50 retailers across the United States. Key highlights include the need for consistency in brand interaction across channels, rising expectations for personalization among consumers, and how retailers are focusing on providing seamless omni-channel shopping experiences. Rethinking Retail Insights from consumers and retailers into an omni-channel shopping experience
  • 2. The effect of consistency across retail organizations A majority of consumers see consistency of numerous facets of retail operations as important across both physical and online stores and across different physical branches. Consistency in the range of products available, is regarded as important, by 72% of respondents for physical and online stores and by 77% across different physical branches. Similarly, consistency in the location of / ease of finding products is important for 68% of respondents across physical and online stores and 75% of respondents across different branches. Consistency of customer service is important to a majority of consumers across physical and online (69%) and across different branches (74%), as are offers / promotions (68% physical and online; 71% across different branches) and appearance / branding of stores (64% physical and online; 66% across different branches). Less than two-fifths (39%) expect their personal information / purchasing history to be consistent across different branches of a brand, while a slightly higher number (44%) expect this across physical and online stores. Despite this, a majority (86%) said that personalization has at least some impact on what they purchase, and one-quarter (25%) say personalization significantly influences what they purchase. Just over two-thirds (69%) of respondents say a retailers’consistency across various channels affects their loyalty to a brand. Surveyed consumers are more likely to say that a high level of consistency would keep them loyal (44%) and a lack of consistency turning them off a brand (38%). More than three-fifths (62%) say consistency has an effect on their tendency to spend with a brand; consumers are more likely to say that a retail brands’lack of consistency would see a reduction in spend (39%). Consumers 59% of shoppers who have experienced personalization believe it has a noticeable influence on purchasing
  • 3. Almost one-third (31%) of surveyed consumers wish their shopping experience was more personalized than it currently is. Currently one-fifth (20%) have never experienced any kind of personalized offers / promotions based on previous purchases, while 19% have never experienced product recommendations based on previous purchases. One-fifth of respondents (20%) have encountered personalized offers / promotions in-store while just over one- quarter (27%) have seen these online. Almost twice as many say they have experienced product recommendations based on previous purchases online (32%) compared to in-store (18%). Of those who have experienced personalization, the majority are highly in favor of personalized coupons (67%), personalized offers / promotions based on previous experiences (62%) and product recommendations based on previous purchases (58%). A majority (86%) of respondents who have experienced personalization say that this influences what they purchase to some extent, including one-quarter (25%) saying personalization significantly influences what they purchase. At least half of all respondents are highly in favor of personalization for groceries (56%), entertainment (53%), health and beauty, (51%) and electronics (50%), while a significant proportion are highly in favor of personalization with regard to clothing (47%), pharmaceuticals (42%) and furniture / gardening / do-it-yourself (DIY) (41%). Personalization
  • 4. Discovering new products and impulse buying A whopping majority of consumers surveyed (92%) look to discover new products. In fact, a majority discover new products via personal research (59%) and through advertising (58%). However, a majority of consumers (96%) also expect retailers to inform their customers of new products to some extent. Almost three-fifths of respondents (59%) interact with brands and/or retailers online. The two websites most commonly selected are Facebook followed closely by the brand / retailer website. Of those who interact with brands online, almost nine in ten (89%) say brand interaction has at least some impact on their purchasing habit. A majority of surveyed consumers (90%) admit to impulse buying at least occasionally. Half (50%) say they are more likely to impulse buy in-store, with less than one fifth (16%) saying they are more likely to do so online. 89%of shoppers who engage with retailers via social media channels say those interactions have an impact on their purchasing choices
  • 5. Consistency across retail organizations A majority of surveyed retailers deliver consistency through a variety of aspects across both physical and online stores and different retail branches. A fairly high level of consistency in the range of products available is delivered by more than half (56%) across physical and online stores and by 68% across retail branches. Other aspects vary across physical and online stores and different retail branches; consistency in appearance / branding of stores is currently delivered by 50% of surveyed retailers for physical and online stores, but by four-fifths (80%) across different physical branches. Similarly, just over half (56%) say offers / promotions are delivered consistently across physical and online stores; this increases to 78% across different stores. Almost two-thirds (64%) of surveyed retailers believe their consumers’shopping experience should be more personalized. Despite this, less than half (48%) say information about customers’purchasing history is consistent across physical and online stores and the same number (48%) say this is consistent across different stores. A majority of surveyed retailers (90%) believe consistency across their brand’s engagement points has an effect on customer loyalty; the majority of interviewed retailers are more likely to say a high level of consistency would keep a customer loyal (70%) rather than a lack of consistency turning them off a brand (46%). Similarly, a majority (92%) of retailers said that consistency has an effect on customers’tendency to spend; surveyed retailers are more likely to say that high level of consistency would see an increase in customer spend (62%). Retailers 90%retailers believe consistency across their brand’s engagement points has an effect on customer loyalty
  • 6. Despite almost one-fifth of surveyed retailers (18%) not having or planning any kind of personalization, a majority of surveyed retailers (96%) believe personalization influences what consumers purchase to some extent, with over half (56%) saying this significantly influences consumer purchases. Almost two-thirds of surveyed retailers (62%) currently offer personalization and a further fifth are planning to implement this technology. Of those who offer personalization, almost half (48%) offer personalized offers / promotions based on previous purchases online, compared to only 3% in-store. Similarly, only one in ten (10%) offer product recommendations based on previous purchases in-store but almost two-fifths (39%) offer this online. Of those who currently offer personalization, all (100%) have experienced at least one benefit from this technology. The four most commonly cited benefits are an increase in sales (74%), an increase in profit (61%), an increase in online traffic (58%) and an increase in customer loyalty (55%), all reported by the majority. Of those who are planning to introduce personalization, less than half (44%) would expect to see an increase in profit. The three most commonly reported answers are an increase in online traffic (89%), an increase in sales (67%), and an increase in customer loyalty (56%). Personalization Consumers are three times more likely to impulse buy in-store than online
  • 7. Almost all surveyed retailers (98%) believe interaction has at least some impact on customers purchasing habits. Similarly, a majority (92%) say their customers interact with their brand online. The two most common ways of doing this are via the brand / retailer website (80%) and Facebook (66%). • Integrating the customer experience Seven in ten respondents (70%) have at least one factor preventing them from creating a more integrated customer experience within their organization, with lack of technology being the most common (38%). Nine in ten (90%) believe a single customer view is important to some extent, with over two-fifths (42%) saying this is very important. However, almost one-quarter (22%) of surveyed retailers do not currently go about creating a single customer view. This being said, Data collection and monitoring the majority create a single customer view through clicks online (64%) and purchases across stores (54%). • Monitoring trends Just over one-third (34%) currently monitor trends in real-time, while almost two-fifths (38%) are planning to do so. Of those who currently monitor trends in real-time, a majority are able to monitor the products that are popular with a particular demographic (82%), products that are popular in a particular region (71%), and products which are popular online (71%). Almost nine in ten surveyed retailers (84%) collect consumer interaction data. On an average, 37% of consumer interaction data collected by retailers is used for upstream buying / assortment planning. Less than half (45%) of these retailers share this consumer information with suppliers. Lack of technology is the most common factor (38%) preventing retailers from creating a more integrated customer experience within their organization
  • 8. © 2013 Infosys Limited, Bangalore, India. All Rights Reserved. Infosys believes the information in this document is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of other companies to the trademarks, product names and such other intellectual property rights mentioned in this document. Except as expressly permitted, neither this documentation nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, printing, photocopying, recording or otherwise, without the prior permission of Infosys Limited and/ or any named intellectual property rights holders under this document. About Infosys Infosys is a global leader in consulting, technology and outsourcing solutions. We enable clients, in more than 30 countries, to stay a step ahead of emerging business trends and outperform the competition. We help them transform and thrive in a changing world by co-creating breakthrough solutions that combine strategic insights and execution excellence. Visit www.infosys.com to see how Infosys (NYSE: INFY), with $7.4B in annual revenues and 160,000+ employees, is Building Tomorrow's Enterprise® today. For more information, contact askus@infosys.com www.infosys.com Research Methodology: Infosys commissioned independent technology market research specialist Vanson Bourne to undertake the research on which this report is based. Two sets of interviews were conducted in December 2013, the first consisted of 1000 interviews with consumers in the US and the second consisted of 50 interviews with marketing decision-makers in retail with more than 300 physical stores. Interviews were conducted online and by telephone using a rigorous multilevel screening process to ensure that only suitable candidates were given the opportunity to participate.