Customer Experience Trends That Are Shaping Retail

The holiday shopping season is upon us. Retail promotions are in full swing and shoppers are ready to shell out for their friends and loved ones. According to the Wall Street Journal, a larger number of Americans plan to spend more on holiday gifts this year than they did in 2014. Forty percent intend to spend more on holiday shopping this season compared to just 25% last season in 2014.^[1] And with demand so high, retailers need to have a clear strategy for addressing modern customer expectations for personalization, cross-channel customer service, in-store technology and an overall superior customer experience.

More consumer dollars are up for grabs this holiday season. This is great news for retailers because, for them, the holiday shopping season is absolutely critical. According to the National Retail Federation, holiday sales are expected to make up almost a fifth of the retail industry’s annual $3.2 trillion in sales.^[1] In order to capitalize on this year’s increased consumer demand, retailers will need to differentiate themselves from plentiful and formidable competitors. But how?

According to Gartner, delivering the customer experience is becoming as important as the product or service itself when it comes to engaging and retaining customers. In fact, Gartner predicts that by 2017, 50% of consumer product investments will go to customer experience innovation. ^[2]Customer experience is the new battleground and the way for retailers to win this holiday season

Digital

To say that we are living in a digital economy would not be news. Consumers are more connected than ever – from conducting extensive online research to make purchase decisions to utilizing social media for customer service to doing everything on a mobile device. According to Google, this holiday season will be the most connected ever. 78% of shoppers used the internet for holiday research last year, resulting in a lower rate of shoppers relying on word of mouth from friends, relatives of colleagues. In addition to online research, shoppers continue to shift to mobile purchasing. Last year nearly $1 trillion in retail sales were influenced by shopping-related mobile searches and over half of consumers who shopped online used mobile devices – smartphones or tablets – which represented a 12% increase from the previous year.^[3] The digital transformation of your business should include a clear strategy for online and mobile research and shopping to account for these trends in consumer behavior.

In-store technology

Connected, digital, tech-savvy consumers have high expectations for their in-store shopping experiences. 69% expect store associates to carry a mobile device to at least check item information and inventory. The convenience of mobile payment options such as kiosks, tablets and self-checkout options also boosts the experience. In addition to the technology that consumers expect to encounter in stores, connecting guests’ mobile devices through smart location awareness technologies can provide a streamlined, personalized and memorable experience.^[4]

Personalization

Consumers expect a seamless shopping and customer experience that is tailored to their needs. They expect retailers to deliver these experiences across channels and devices and, in general, they are willing to take their business to a competitor if they don’t get what they want. Google reported that over 50% of consumers surveyed were open to buying from a new retailer while 41% actually did purchase from a new store or brand.^[3]

Leveraging customer data to create relevant and targeted promotions can boost customer engagement and foster loyalty. 58% of consumers said they were willing to share data in the interest of personalization and convenience. And 50% of retailers already rank personalization among the top 3 reasons for using big data.^[4]

Customer experience as a competitive advantage

With more consumer dollars up for grabs this holiday shopping season, retailers must be increasingly strategic about providing a superior customer experience if they want to win those dollars. And during the holiday season, the most important time of year for retailers, a focus on customer experience can make all the difference in beating out the competition.

References