82% of U.S. consumers surveyed said they expect a retailer's prices to be the same in store and online, a significant increase over the 69% who said so the previous year, according to Accenture. U.S. Retailers Struggling To Meet Consumer Expectations Around Mobile And In-Store Experience, Accenture Study Finds.
A seamless approach remains a tall order for many, as retailers continue to lack critical capabilities. U.S. retailers must move quickly to improve their operational capabilities in order to deliver a ÛÏseamless retailÛ experience to customers who say their expectations are not being met, according to new research by Accenture. For the second consecutive year, two studies of ÛÏseamless retailingÛ indicate a number of gaps between consumer expectations related to product offerings and pricing and the ability of retailers to deliver what customers want, as they shop across a growing number of channels.
A survey of 750 U.S. consumers and a separate analysis of how U.S. retailers operate across multiple sales channels indicate that, in order to win consumer loyalty and achieve growth across all channels, retailers must enhance their mobile commerce offerings and improve the in-store shopping experience. Only 42% of shoppers found it easy to complete a purchase using a mobile device, and when asked which aspect of the shopping experience is most in need of an upgrade, 39% ranked the physical store first, showing that retailers have not made much progress in these categories since last yearÛªs survey.
The research also found that a number of mobile capabilities that can enhance seamless retailing for customers remain underdeveloped. For example, while all of the U.S. retailers assessed as part of AccentureÛªs benchmarking analysis have mobile optimized websites, only 53% have optimized their websites for tablets.
According to the consumer survey, respondents said they would like to access services via their mobile phones while shopping in-store.åÊMore than a third (39%) said that they would take advantage of the opportunity to earn loyalty points and save money on their purchases through in-store mobile phone offers, and 45% would like to receive real-time promotions sent to their phones or tablet. Yet, only 28% of retailers currently have the capability to deliver that service.
This gap between consumersÛª desire for mobility services and the current levels of provision from retailers is further reinforced by the 32% of respondents who said the second biggest improvement retailers need to make in the consumer shopping experience is to enable the use of all three sales channels ÛÒ physical store, online and mobile ÛÒ in an integrated way.åÊHowever, tablet and mobile phone users are able to start shopping on their devices and complete the cycle in-store with only 22% and 19% of retailers, respectively.
When asked specifically about the improvements that are needed to enhance the in-store experience, survey respondents cited easy ordering of out-of-stock merchandise (19%) and free Wi-Fi (15%). In addition, more than one-third (36%) said they would order out-of-stock items via their mobile phone while in-store if they had that option.
ÛÏPhysical and digital commerce are converging at an incredible pace,Û said Dave Richards, global managing director of AccentureÛªs Retail practice. ÛÏThe fact that many consumers use their mobile devices to check inventory availability while on their way to a store and are looking for real-time promotions to be sent to their phones means retailers have an opportunity to capitalize on the power of these devices. By investing in mobile applications and frictionless digital payment tools that incorporate loyalty, coupons and rewards in-store, retailers can provide a seamless bridge between customersÛª online and offline experiences. All sales channels must be equally desirable to the consumer, so that the path to purchase is not chosen based on satisfaction in one channel over another, but simply on what is most convenient at that time.Û
Consumers Demand Transparency, Consistency and Convenience Across Channels
The surveys also found growing consumer expectations for transparency and consistency in pricing. An overwhelming majority (82%) of survey respondents expect a retailerÛªs prices to be the same in-store and online, a significant increase on the 69% last year. However, AccentureÛªs benchmarking analysis of retailers indicated that only one-third (34%) had the same pricing in-store and online for more than 80% of the items assessed.
Furthermore, the survey indicated that retailers who donÛªt have the right online presence and pricing are at risk of losing sales once a physical store closes for the day. If access to a physical site is not possible, 15% of consumers indicated they would shop around online for the best price, rather than buy from the original retailer online or wait to go back to the store, an increase from nine percent over last yearÛªs survey.
Shipping and Delivery: Free Continues to Outweigh Fast
The survey points to continued price sensitivity, especially when it comes to shipping:
- 57% of consumers said they would be willing to wait between 4 and 7 days for free delivery.
- Consumers are willing to wait even longer for free delivery: 29% would wait 8 days or more, compared to 23% who said the same last year.
- At the same time, 26% of respondents said they would be willing to pay $10 or more for same-day delivery for an item they need urgently, 13% would pay extra for next-day delivery and 22% would consider paying $20 or more for delivery within 2 hours.
Scheduling capabilities are important to shoppers:
- More than half the survey respondents (55%) think that scheduling a delivery from retailers is important; 11% said they would be more interested in scheduling a pickup at a collection point and scheduling a delivery during peak than scheduling within a one-hour delivery window (cited by 4%).
- When it comes to order fulfilment, 20% of shoppers said they have increased the use of the pickup in-store option this year.
- 46% of consumers said that consolidating an order into one delivery rather than multiple deliveries is ÛÏextremelyÛ or ÛÏveryÛ important.
ÛÏOur findings highlight a clear gap between the cohesion consumers expect from their shopping experience and what they seem to be getting. This suggests it is time for retailers to rethink their investment approach as they look to drive sales,Û said Richards. ÛÏIt is critical for retailers to build the capabilities such as digital marketing and analytics that will enable them to tap into the core strengths of the physical store and seamlessly integrate with the rest of their digital offerings. The winners will be those most successful at transitioning their online visitors into in-store purchasers and vice versa.Û
With almost 30% of the American population still prefering to shop at national and regional chain stores, your national/major/key accounts need to be advertising their focus on seamless retailing. AudienceSCAN found that 21% of this audience uses smartphones to look up business info and locations, which means they WANT to shop in-store! They're doing their research online before buying: 49% took action after seeing ads in their sponsored search results (like on Google, Yahoo or Bing). 34% of chain-store shoppers think stores that advertise are typically better than those that do not advertise.
AudienceSCAN data is available as part of a subscription to AdMall for Agencies. Media companies can access AudienceSCAN data through the Audience Intelligence Reports inåÊAdMall.