New report
identifies the changing shopping behaviour of Canadians—and suggests how
retailers can adapt - Deborah Aarts || February 26, 2014
Shoppers today
aren't just pleased to shop with retailers who offer several ways to buy
stuff—they expect it. In fact, former nice-to-haves (like an
easy-to-access storefront, a ecommerce-enabled website and a mobile shopping
app) are now becoming table stakes for Canadian store operators.
This is one of
the key takeaways of a
new survey of retail expectations conducted by PwC. The survey polled more
than 15,000 consumers (located in Canada and around the world) to get a sense
of what, exactly, today's shopper wants when opening his or her wallet. According
to a report detailing the research, "the bar is now much higher for
retailers with world-class aspirations."
This is not
exactly news to any retailer struggling to compete in 2014. Changing customer
expectations have made it extremely difficult for store operators—especially
independents—to thrive. So, what is the solution? In PwC's view, "a new
approach is needed, and retail customers are pointing the way."
Here are the
four key things PwC believes consumers want today—and some tips on how your business
can adapt to them.
1. A distinct and compelling brand
The term
"brand story" isn't just for marketers any more. Contrary to popular
belief, today's consumers are becoming more and more loyal. In fact, data shows
that they want to shop at fewer retailers; in 2013, 59% of Canadian shoppers
patronized just five or fewer national non-grocery retail chains, up from 46% a
year earlier. (Multichannel shoppers are even more loyal, with a whopping 97%
shopping at fewer than five major retailers.)
When choosing
which of the select few stores they'll buy from, shoppers look for compelling,
clear and engaging branding. When asked why they buy from their preferred
retailer, the top answer was not price or selection, but rather "I trust
the brand," as this infographic shows:
2. Customized offers
We live in a
world where customization is king, and it's permeated shopper expectations.
Canadian consumers want retailers to understand and appreciate their individual
tastes—and to provide offers that complement those preferences. Big data and
analytics tools are making it easier for store operators to meet these needs
(mostly by reviewing past purchases).
At the same
time, however, consumers are skittish about retailers knowing too much about
them—especially if they believe their personal information may somehow be
compromised. For instance, as the infographic below illustrates, more than half
of Canadian shoppers who don't buy online cite security concerns as their main
reason.
A good way to
ease their worries, according to PwC, is to to be "absolutely
transparent" about how you plan to use the customer data you collect.
"It's essential to clearly communicate what data is being collected, how
it will (and won't) be used, how long it will be retained and how it will be
protected," the report reads. "Everyone with a customer-facing
role—right down to the clerks at the cash desk—should be able to explain the
company's data usage policies to customers." Such candor builds trust,
researchers say, which encourages shoppers to share more information.
3. An amazing digital experience (on all devices)
Today's consumer
is buying in more ways than ever before. Along with buying in-store and from a computer,
26% of Canadian shoppers bought products using a tablet in 2013 (up from 22% in
2012), while 29% did the same using a smartphone (up from 23%). Mobile shopping
was up even in categories you wouldn't expect, such as household appliances
(see infographic below).
PwC claims
consistency is crucial to success in this multichannel environment. When a
customer visits to your website, Facebook page, mobile site and, yes, your
store, they want an easy to navigate, and easily recognizable, experience.
4. Transparency
Your stockroom
should no longer be a place of mystery. Shoppers today want to know exactly
what you have available, and when. And if you don't have it, they'll check out
whether your competitors do. When asked to identify what type of in-store
technology would most enhance their shopping experience, the most common
response (with 47% choosing it) was the ability to check other store or online
stock quickly. (The infographic below details the second, third and fourth
choices.) Such once-buzzworthy tech trends as QR codes and video walls barely
register.
Giving customers
visibility into your inventory has other benefits, too. It'll force you to up
your own inventory-management game, which is likely to improve your broader
supply chain. And, as researchers say, giving customers a window into your
stock will give you even more valuable data about their shopping preferences.
"The more retailers can learn about their customers' buying habits,"
the report's authors write, "the better they can understand and engage
them."
