Capgemini Digital Shopper Relevancy Report 2014:
The way that consumers behave and shop is changing significantly. Nowadays shoppers have a multitude of new options at their disposal to find the perfect solution for their personal wants and needs. Furthermore, the psychology of their decision-making is also changing, with the use of new sets of criteria to guide their purchasing, and their loyalty to any one of 1,000s of different consumer brands being stretched and strained.
Capgemini has conducted research on the behaviour of consumers to get a bette understanding what the reasons are that makes households purchase on the web. The research conducted was made through questionnaires in 18 different countries. Some of these include Australia, Brazil, China and UK. From each country, about 1,000 people who have at least bought products were asked to fill in the form. Different topics from different industries were asked in order to get a representable sample.
1. Social media: overhyped?
Consumers consider social media to be a less important part of their customer journey (from awareness to post-sale activity) compared with conventional retail store experience, Internet, email, smartphone apps, or the use of technologies in-store. The use of social media is most relevant in the ‘awareness’ and ‘choice’ phases of shopping journeys, but much less in ‘transaction, delivery and post-sales’ stages.
A striking fact is that the importance of the smartphone, as a digital channel, by contrast has grown in importance.
What to do?
The research suggests that retailers and CP companies still have work to do at every stage of the purchasing journey if they are going to convince customers that social media has a useful, valuable role in buying a product or service.
Retailers and CP companies should take a realistic and pragmatic view of the return any investment in social media is likely to make. Social media certainly has its place in an advisory capacity and needs to be proactively managed, but we would caution against an over-reliance on its ability to enhance the overall customer experience.
2. Physical store reigns
When carrying out retail transactions, 72% of respondents identify the store as important or very important compared to 67% for the Internet (except for electronics).
Different channels are preferred by consumers at different points along the shopper journey. While the shop is still king when transacting, the Internet is now preferred globally, for finding product and promotion information and choosing what products to buy.
3. Digitally-savvy high-growth markets
High-growth markets all show a significantly stronger preference for digital technologies than mature markets:
|High-growth markets||Mature markets|
|High use of mobile apps and social media for online shopping|
|Look for rewards and to recommend that retailer is they receive one||Less likely to be high-frequency, socially active digital shoppers|
|Provide retailers with their personal data to enhance the shopping process||Security and privacy doubts have not receded, with techno-shy shoppers still very evident, especially in the European markets|
|Predict physical shops are turning into showrooms||Using the Internet as a well-established technology throughout the shopping process, while their usage of other digital technologies and social media is less prevalent|
|Expect deliveries to be made seperately at their own convenience|
|Regards bar code as very important to search for information, choose and compare products||Expecting clear price information, a number of payment options, digital receipts, delivery tracking, and product return flexibility.|
What to do?
In the high-growth market is a significant opportunity for brands present in, or expanding into, these regions to use the digital channels that are obviously resonating with consumers in these countries.
There is currently a willingness by consumers to openly engage with retailers and brands and the industry should ensure that it does not squander this dynamic momentum. However, in the mature markets, companies need to be aware of the greater resistance and be more transparent and intelligent than ever about how they engage with customers, to ensure the trust and engagement of mature markets shoppers.
4. No ‘One’ Digital Shopper
With the proliferation of digital channels and a proactive stance to engaging with customers taken by retailers and CP manufacturers, the task of profiling shoppers has become more layered and complex. Key factors influencing the experience and requirements of digital shoppers include age, gender, product category, journey phase, attitudes and expectations towards technology, and market maturity.
Digital Shopper profiles in the Mature Markets:
- Socially-Engaged Digital Shoppers (41%): Heavy users of digital technologies and comfortable using social media. The group is relaxed entrusting its data to retailers and using all channels to research products.
- Value-Conscious Digital Shoppers (29%): This group prefers in-store shopping, but is comfortable using the Internet and email as part of the purchasing journey. They are less comfortable using smartphones, tablets and social media.
- True Digital Shoppers (19%): This group purchases online the most frequently of any other in the mature market segment. True Digital Shoppers use apps to compare products, track delivery and are happy sacrificing personal data for customized deals.
- Reluctant Digital Shoppers (11%): This group is not comfortable using technology and typically shies away from it. They prefer purchasing from physical stores versus online and avoid social media and smartphone as shopping channels.
Digital Shopper profiles in the High-growth Markets:
- Interactive Digital Shoppers (50%): Interactive Shoppers are at ease shopping across all digital technologies, are regular online shoppers, and love retailers that embrace technology like QR codes and mobile apps.
- Technophile Digital Shoppers (27%): This group has willingly adopted digital technology and makes online purchases regularly. Although they trust retailers with their personal information, they like the opportunity to opt in and out of notifications.
- Digitally-Indifferent Shoppers (23%): This group is uninterested in digital technologies like smartphone and mobile apps, and prefers stores. They are comfortable sharing personal information with retailers, but not through social media channels.
5. The Privacy Issue
Consumers are much more aware of the ownership and value of their data and issues of data privacy. Globally, over 28% of respondents feel strongly that they currently are not being provided with clear notice, choice and control of how their personal data is collected, used and shared by retailers.
What to do?
Creating mutual value is certainly key to improved digital engagement and in establishing and retaining trust. Initiatives such as that of the development of the Consumer Engagement Principles by the Consumer Goods Forum are CP companies can bridge this ‘trust gap’ and ensure a balance between the looking to develop a common approach to improve the way the retail and values of the different stakeholders; consumer, society and business.
6. Fashion showing the way
The fashion category shows an increase of 9% of consumers having purchased a product online in the last 6 months, up to 61% in 2014 from 52% in 2012. More than half purchased electronics, 44% bought health products, and 3 in 10 food online.
How are you going to incorporate it in your with report ?
Customer analysis is one of the most important factor of every company. In order to conclude strategy, key findings of research need to be aware.
- SOCIAL MEDIA: OVERHYPED?
As social media plays an important role in only for awareness and choice of purchasing journey, Roobar need to focus on raising awareness in social media. It should be advertised about its advantages which may include benefits such as nutrient or how Roobar effect to people’s body . Moreover, investment on social media need to be carefully managed to make it profitable.
- PHYSICAL STORE REIGNS
Despite preference on retail store, people rely on internet as finding product and promotion information. Roobar is in the niche market which benefit of product needs to be realized. Internet would play an important role in providing information of product benefits. However, different social medias and channels are preferred in each region. Roobar should provide information on the most effective channel.
- DIGITALLY-SAVVY HIGH-GROWTH MARKETS
It is important for Roobar to aware of the opportunity in the high-growth market. Regular barcode could be used for searching for information; however, each preference on technology is different among each country. Deeper analysis need to be done in order to localize business model
- NO ‘ONE’ DIGITAL SHOPPER
In each country might have different kinds of shopper profiles which need to be analyze individually.