How Seamless are You? retail research findings

How Seamless are You?Accenture went on a journey to understand consumer preferences to shop seamlessly across channels

and the ability of retailers to deliver that seamless experience.

Seamless Retail Global Benchmarking:

60 global retailers evaluated across 80 questions and 6

capabilities.

How We Measured it:Seamless Retail Global Customer Survey:

6,000 people surveyed in 8 countries: United States, U.K., Germany, France, Sweden,

Japan, China and Brazil.Results analyzed by demographic, retail

segment and country.

What We Measured:

Consistent Experience Customers are able to enjoy an easy, brand consistent

shopping experience regardless of channel

Connected Shopping The end-to-end shopping experience

feels connected across channels

Flexible Fulfillment / Returns Retailers offer multiple fulfillment and return

options convenient to the customer

Personalized Interaction Personalized customer promotions and loyalty

rewards across channels

Better, Faster, and MemorableRetailers are testing new technology and engagement

methods to enrich the customer experience

Integrated Merchandising Assortment and pricing integrated across channels

meet customer expectations

Like to Shop Online (Apparel) 52% 53% 70%

Like to Shop via Mobile Device (Apparel) 11% 13% 24%

Like to Shop in Physical Store (Apparel) 86% 83% 80%

Showroomed at Least 1x in the Last 6 Months 73% 77% 85%

Flexibility to Pay Anytime / Anywhere (cash, credit, other)– Important / Very Important

77% 73% 65%

Same Day Delivery – Important / Very Important

24% 42% 38%

Think “Integrating Stores / Online / Mobile” is Where Retailers Need to Improve Shopping Experience Most 49% 48% 38%

The Seamless Consumer is a Global PhenomenonAt the geography level, there are many similarities and some differentiation

in consumer expectations of a retailer’s seamless capabilities.

North America EALA APAC

The 25 and 55-Year Old Seamless Consumers have More in Common Than You Think

Millennials appear to be defining new behaviors that are quickly spreading to other age groups.

MILLENNIALS(1980 - 2000)

GEN X(1964 – 1980)

BOOMERS(1946 - 1964)

Percentage Who Would Use Real-Time Product Availability to Influence How They Shop

Returns – Percentage Who Will Go with “Cheapest Option” Regardless

Percentage Who are Showrooming More Than They Did 1 Year Ago

Percentage of Consumers Who Would Shop Online or Via Mobile if They Want a Product Outside of Business Hours from Their Favorite Retailer

In Common...

Where There’s Divergence...

Millennials are 1.5x more likely to increase their mobile purchases

going forward

Millennials are 3x more likely to be influenced

by social media

1.5x 3x

37+37+34

48% 54%

62%

93% 90% 84%

44% 39%

41% 37% 37% 34%

Price Still Rules in a Seamless WorldAt the end of the day, price is still the greatest determining factor in a consumer’s purchasing decisions.

What Influences You Most

Where / How You Shop?

3%

Price

Location (I only shop stores that are nearby)

Product brand name

Knowledgeable in-store associates

Retailer’s overall brand image

Customer reviews

In-store product demos

Virtual / video product demos

What my friends or family have bought or want to buy

None of the above

32%

18%

11%

10%

9%

7%

6%

3%

2%

When Purchasing Online or via Mobile

Device, What Influences Your

Purchase Decisions?

Best price

Shipping costs

Quick and easy payments

Easy to navigate site or app

Best products

Access to customer reviews

Filtering my search based on features that matter most to me

Simple view, especially on small screens

Web chat customer support

Interactive video product demonstrations

Remote QR code ordering

72%

59%

41%

38%

36%

30%

22%

19%

10%

9%

4%

$(Multiple Responses)

Consumers Increasingly Expect Integration of the Big Three (Product, Promotion, and Price)

Beyond just seeing a consistent brand across channels, consumers expect a fully integrated and connected shopping experience.

Expect it to be the same or less In-Store

Consumers who report having one account for use In-Store, Online, and Mobile Device to

make check out easy and faster.

Consumers who report having an account completely connected between purchases and

loyalty points both Online and In-Store.

In-Store Online Mobile Device

Promotions(discounts, sales)

Price(including tax and delivery)

Product Assortment

51% 81%

49% 45%

63% 83%

Expect it to be the same across channels

Expect it to be the same across channels

Expect it to be sometimes different across channels

Expect it to be the same across channels

Expect it to be the same or more In-Store

45% 43%

Seamless Means Personalization at Every Touchpoint, and That’s OK

Consumers desire personalized experiences through every engagement channel – tailored to their needs and preferences.

Percentage of consumers who report desiring the following personalization

from retailers, across all channels:

Percentage of consumers who report the following currently influence or

may influence in the future:

I can receive unique pricing, automatic discounts, free returns, or pre-sales based on my loyalty / purchase history

I can earn and use my loyalty rewards In-store, Online or on a Mobile Device

My account is completely connected between purchases and loyalty points both Online and In-Store

I may have one account to use In-Store, Online, and on Mobile Devices to make check out easy and fast

In-Store Offer

E-mail Coupons

Text Offers

Mobile Banner Ads

Online Pop-Up

53+4745+55

55+4555%

53%

45%

43+5743%

90+1059+41

90+10

50+5045+55

90%

90%

59%

50%

45%

Retailers Have Focused on the Easier Capabilities – Now It’s Time to Address the Tougher Ones

Our research shows that retailers have underinvested in 4 out of the 6 dimensions that consumers are demanding.

Foundational Leading Edge

Consistent Experience

Department

Grocery/Drug

Hardgoods

Hyper/Mass

Softgoods

Flexible Fulfillment/Returns

✚ Highly Advanced

Personalized Interactions

● Absent ■ Underdeveloped ★ Developed ◆ Advanced

Better, Faster and Memorable

◆ ■ ■ ■ ★ ■

◆ ● ● ■ ★ ●

◆ ■ ■ ■ ★ ■

◆ ■ ■ ■ ★ ●

◆ ■ ■ ■ ★ ■

Most important based on consumer feedback

Connected Shopping

Integrated Merchandising

Where retailers have invested the most

Retail Segment Matters When Investing in Seamless CapabilitiesNot only do retailers’ seamless capabilities differ by segment, but so do consumer expectations.

Relationship Between Consumer Online Channel Preference and Seamless Capabilities

Percentage of Consumers Who Prefer Online Shopping

2.0

1.0

0% 50% 100%

Insights...

Retailers that are ahead of the

curve stand to benefit the most by differentiating from

their competition and positioning

themselves to build the highest customer loyalty.

DEPARTMENT STORES

SPECIALTY– HARDLINES

SPECIALTY– SOFTLINES

DISCOUNT/ MASS

MERCHANT

GROCERY/ CHAIN DRUG

Seam

less

Cap

abili

ty S

core

As consumers migrate their seamless shopping habits across retail formats, the question is who will be ready for them?

Becoming Seamless Isn’t an “Either / Or” to a Sound Value Proposition

Seamless capabilities are critical for a Retailer’s success, but the fundamentals still matter.

Looking ahead, retailers should be excited yet pragmatic about what seamless means for their business.

BUSINESS STRATEGY

#1#1

#1

#1#1 #1

UNDERLYING CUSTOMER VALUE PROPOSITION

BRAND+ +

Seamless Will Lead to Collaboration across Retailers and with Existing and Emerging 3rd Parties

Retailers will need to seek out strategic partnerships to build better, faster, and memorable emerging capabilities.

When the Consumer Says…

“81% of us rate as Important or Very Important the flexibility to pay for product anytime and anywhere, using cash, credit, or

other payment types (e.g., mobile wallet)”

“80% of us rate as Important or Very

Important the ability to pick up or arrange for delivery of our purchase

regardless of how we paid”

…It Means These Non-Core Capabilities Take Added Importance…

Mobile Wallet

Payment Processing

Integration of Banks/Creditors/Loyalty/Apps/Smartphones/POS

Ability to Schedule Assets/Labor Around Variable Demand

Customer Order Management

Delivery Assets/ Delivery Routing

...And This Type of Cooperation Becomes the Future

TRACKYOUR ORDER

The Efficient Innovators Will Win the Seamless GameConsumers are quick to change their priorities and expectations of retailer capabilities.

Which of These Would You Use if Offered on Your Mobile Device While In-Store?

Gather loyalty points or savings as you shop based on current promotions

Offer real-time promotions you might be eligible for (e.g., buy 2 get 1 free, coupons)

Order out-of-stock items in-store for home delivery, or store items into your wish list

Shopping list and find items in the store (item locator and navigation)

Scan products as you put them into your shopping cart

View other customer’s ratings and reviews

Order whatever products you need from a single retailer, even if they are not normally carried by the retailer

Suggest complementary products based on what I already scanned into my basket / shopping cartProvide product

suggestions to manufacturers

Pay with your phone at checkout

Tell me if I scanned something that I should NOT buy based on dietary or religious restrictions, etc.

Post what you like to Facebook or Twitter (pictures of products, special offers, new products, etc.)

88%

88%

82% 79%

77%

74%

71%

63%62%61%

43%

38%