Just as important as price.
Brick-and-mortar retailers are more likely to grow and maintain a loyal customer base if they invest in the digital experience online and in-store.
A survey from digital performance firm Riverbed found a majority of Australian consumers said a positive digital shopping experience impacts brand loyalty just as much as prices. Also, brick-and-mortar retailers have a short, three-year window to provide shoppers with strong digital experiences in order to remain competitive.
The Australian retail industry is going through a tremendous period of change, with retailers struggling to remain relevant to consumers in the ‘Amazon era’, Riverbed Technology vice president, Keith Buckley said. “With customer expectations continually on the rise, delivering a positive digital experience to consumers has never been more critical to retail success.
“This doesn’t mean retailers must invest in every new technology that comes along, but what we are hearing is that near-term IT investments that boost the online and in-store experience will be the sweet-spot to giving customers the best experience possible. Overwhelmingly, investing in digital is proving to be a key driver to customer loyalty,” he said.
One of the biggest problems brick-and-mortar retailers face today is declining foot traffic, which is driving closures of physical stores. However, retailers have a huge opportunity to attract new customers to their stores, as 42% of Australian consumers say they have specifically visited a store for the first time because of the enjoyable online digital experience that the brand provided. That number jumps to 60% for millennial shoppers.
The survey also showed that only 40% of customers feel positive about the use of drones in retail and 57% have taken advantage of digital experiences while shopping in store with Wi-Fi the most utilised. A majority said they could be swayed to shop at a store if they had digital services such as automated checkouts, smart shelves or VR/AR technology. The ability for sites/apps to load quickly was considered most important along with the ability to shop online and pick-up instantly in-store.
But deliver a poor digital experience and consequences will follow. The survey showed that 67% of Australian shoppers with poor digital shopping experiences had taken some form of action as a result. While consumers want great digital experiences, they are cautious when it comes to stores using their personal data to deliver a more customised experience. Two-thirds of survey respondents prefer not to sacrifice their personal data and receive a less tailored service, while 34% are willing to give up data for a more personalised experience.