Brand experience takes centre stage over price for UK shoppers


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 per cent say they would choose a
good returns policy over price. The rise of social media has also led to
over half of shoppers (57 per cent) 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
per cent say they read product reviews online and 48 per cent 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 per cent say they are
unlikely to use offers from retailers based on their current location.

Steven Skinner, SVP, Retail &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
per cent) 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 per cent) 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 per cent) 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 per cent) 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.”

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