"In an recent Accenture survey (4/4/07) of more than 600 U.S. consumers has found that the majority of consumers use the Internet as part of the shopping process even if they go to stores to purchase or pick up items. The data suggest that retailers and consumer goods companies need to focus on customer service and information available both from call centers and online or risk losing customers researching potential purchases.
While two-thirds (67 percent) of survey respondents said they prefer to make purchases in physical stores respondents also said they research product features online (69 percent), compare prices online before shopping in a physical store (68 percent) or use the Internet to locate items online before going to a store to purchase (58 percent). Only 13 percent of respondents said the Internet has not improved their in-store shopping experience.
“Instead of replacing bricks and mortar stores, the Internet is an extension of consumers’ in-store shopping experience providing a resource to research product and price,” said Jeff Smith, global managing director of Accenture’s Retail practice. “Retailers and manufacturers must understand this consumer behavior trend in order to reach shoppers, educate them, serve them and earn their loyalty.”
Awareness and loyalty
When asked to identify the most powerful influencers of their purchase decisions, the greatest number of respondents – 60 percent – said word-of-mouth, followed by advertising (47 percent) and online information (43 percent) are the most influential. The top three ways consumers said they learn about new products are television (64 percent), word of mouth (47 percent) and print ads (37 percent).
Half (50 percent) of consumers surveyed said they value special promotions to retain their business while 37 percent said they look for improved customer service. Promotions for frequent customers appear to be more effective for women than for men with 54 percent of female respondents saying they value these promotions compared to 47 percent of males surveyed.
Timing seems to be a bigger influence than promotions for new product purchases of both health and beauty items. For example, 33 percent of respondents said they bought a new health or beauty product because they needed it at the time compared with only 22 percent who said they bought such a product because they had a coupon or found the product on sale.
“It’s critical to understand customers’ wants and needs before, during and after the actual purchase,” said Keith Barringer, global managing director of Accenture’s Consumer Goods & Services practice. “Increasing insight into the customer – and acting on it – can help manufacturers successfully time new product launches and help retailers know when to offer promotions to increase revenue and customer loyalty.”
The majority (55 percent) of respondents said new products are introduced before they realize a need for them while nearly half (47 percent) said that new products are introduced that they don’t feel they need. Almost one-third (30 percent) of respondents said they could think of new products they need that have not been developed yet.
“This research shows there are significant opportunities for manufacturers to improve their innovation and product development processes,” added Barringer.
Service and selection
The survey findings indicate that consumers want better service and product selection both online and in the store. More than two-thirds (67 percent) of respondents reported that, when shopping in physical stores, they often find too few registers are open and more than half (54 percent) say there are not enough sales people available. Many respondents said they will go elsewhere if they don’t find the appropriate selection at a certain store; this is particularly true for items such as footwear (81 percent); music, movies and books (78 percent); and jeans (76 percent).
“Consumers are telling us that there is a need for more efficient customer service departments,” said Smith. “The phone, and increasingly a company’s web site, are the first points of entry. If the on-hold time is too long, if the customer is passed around to different departments or if online navigation is confusing the sale can easily be lost. Customer service can be a powerful – and profitable – differentiator for retailers that know what their customers want and how to deliver it.”
Only 50 percent of respondents report getting help always or most of the time for electronics stores and household furnishings with 47 percent saying the same for specialty stores. According to 43 percent of respondents, mass retailers provide help some of the time but 29 percent report the mass stores rarely or never have help available when needed.
The survey also found:
- Location is not shoppers’ main concern. Consumers say price and product selection matter more than store location when shopping. The key criteria respondents cited for deciding where to shop are price (85 percent), and product selection (69 percent) followed by store proximity (57 percent).
- Gender differences. More men than women (51 percent vs. 39 percent) report the Internet has improved the in-store shopping experience by allowing them to order items online for in-store pick-up. More men than women (17 percent vs. 9 percent) purchase in-store to get better prices while more women than men (16 percent vs. 8 percent) purchase in-store to avoid shipping charges."
http://newsroom.accenture.com/article_display.cfm?article_id=4529
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