Partner Article

UK shoppers prioritise brand experience over price

• 57% of UK shoppers have posted an online review of their shopping experience in past year
• 49% check competitors’ prices on smartphones when browsing in store
• 43% of shoppers gave convenience as the top reason for not choosing the lowest-priced retailer
• 16% happy to pay more because of perceived status of retailer

Cognizant’s third annual UK Shopper Experience Study shows that shopping is not all about finding the best deals. The survey, conducted with over 1,000 shoppers to explore their perceptions of retail today and understand what they want from retailers tomorrow, shows that consumers are willing to pay a little more for improved experience or convenience.

With the capability to directly affect retail strategies, the study shows that shopping does not end with the sale. Service and after-sale support, such as the ease of returns, is a huge contributing factor in the choice of retailer. In fact, 25% say they would choose a good returns policy over price. The rise of social media has also led to over half of shoppers (57%) writing reviews of their experiences online. Therefore, what happens during or after a shopping trip can have a huge impact on a retailer’s brand image – and ultimately the bottom line. The recent news highlighting the rise of fake reviews showcases just how important reviews are in today’s retail market where consumers can make decisions to continue with or abort purchases based on the feedback from others.

UK retailers are continuing to innovate and introduce new online and in-store technologies – such as beacons and location-based services – to improve the customer experience. The study found that shoppers want interactive features that directly influence their purchase. Fifty eight percent say they read product reviews online and 48% use a mobile to select a product colour or size. However, most shoppers are not interested in engaging with social media or technology unless it directly affects their purchasing decision and 56% say they are unlikely to use offers from retailers based on their current location.

Steven Skinner, Senior Vice-President of Retail and Consumer Goods Consulting at Cognizant, explains: “Today’s shoppers – who use the online, mobile and in-store options available to them –know the price they are willing to pay, and the level of service they expect to receive in return. They are adept at researching products, comparing prices and exploring delivery options. They know what they want.”

The study also found that ‘showrooming’ – where shoppers browse for items in-store but purchase them online – is now ubiquitous. Nearly half (49%) of UK shoppers say they check competitors’ prices on their smartphones when browsing in-store. When it comes to delivering items, over a quarter (26%) of UK shoppers who made use of click and collect, complain they have been forced to wait too long in-store before items are ready, which is currently holding the service back from becoming widely adopted.

Brand loyalty is an ongoing trend. Sixteen percent of shoppers claim they are happy to pay more because of the perceived status of the retailer. Loyalty programmes also have a big impact on where people shop. Nearly a third (32%) of UK shoppers say they are more likely to purchase products in a shop where they would get loyalty points, even if they know they can buy the products cheaper elsewhere. Eighty five percent of UK shoppers are members of at least one loyalty programme and nearly a third (32%) are members of between three and five.

Steven Skinner concludes: “Just as technology has given shoppers more information, it is helping retailers too. Digital technologies — such as social, mobile, analytics and cloud (SMAC) as well as sensors — allow retailers to track and understand customer behaviour in unprecedented detail. This customer knowledge can help retailers identify and invest in the tools and technologies their customers really value. What’s more, digital technology also helps retailers monitor stock availability, communicate availability of in-store, digitally-enabled sales assistants, and help consumers to self-serve and find information on products more easily. Overall, this will help retailers improve customer loyalty and increase sales.”

Methodology

Cognizant’s annual UK Shopper Experience Study is based on findings of qualitative online interviews with 1,000 UK shoppers, carried out in Q3 2015. It is part of a wider European study involving five other countries and a total of 6,000 shoppers.

This was posted in Bdaily's Members' News section by Cognizant .