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The retail landscape is rapidly evolving, and with the surge in online shopping, understanding consumer behavior across various touchpoints has become more critical than ever. A recent report by Retail Economics in partnership with Auctane provides intriguing insights into the preferences and patterns of shoppers across the globe. The findings not only shed light on the dynamics of pre-purchase, purchase, delivery, and returns but also underscore the complexity of modern consumer journeys in the omnichannel era.
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The Journey Begins: Pre-purchase Behavior
According to the report, a whopping 62% of shoppers embark on their customer journey by browsing online for non-food products, while 38% still prefer the traditional in-store experience. This initial stage sets the tone for the rest of the shopping expedition, highlighting the dominance of digital channels in the discovery and comparison phase. Building upon this, research from BRP Consulting underscores that consumers are not limiting themselves to a single touchpoint. Those who engage with multiple channels, combining digital and physical avenues, spend on average 4% more during in-store shopping occasions and a remarkable 10% more when shopping online compared to their single-channel counterparts.
The Critical Decision: Purchase Patterns
As consumers progress from exploration to making a purchase, the data reveals that nearly half (47%) opt for the convenience of online shopping for non-food items. In contrast, 20% of shoppers who initially browse online ultimately choose to make their purchase in-store. This insight emphasizes the fluidity of customer preferences as they navigate between online and offline channels during the buying process. BRP Consulting's insights further emphasize the significance of consumer deliberation, revealing that shoppers who conduct online research before making an in-store purchase end up spending 13% more. This suggests that thoughtful consideration in the buying process contributes to higher returns for retailers.
The Last Mile: Delivery Preferences
When it comes to receiving their purchased items, a substantial 74% of online buyers lean towards the ease of home delivery. On the flip side, 26% opt for out-of-home options, such as collecting from a store, locker, or other locations. This statistic underscores the importance of flexible delivery solutions to accommodate diverse customer needs. BRP Consulting's findings accentuate the importance of the multiple touchpoints, once they have bought, shoppers who used multiple touchpoints logged 23% more repeat shopping trips to retailers’ stores and were more likely to recommend the brand to family and friends than those who relied on a single channel.
Navigating Returns: A Balancing Act
The report unveils a nuanced approach to returns, indicating a fairly equal split in preferences. While 30% prefer returning items via courier and 19% through postal services, 26% choose to return items in-store, and an additional 25% favor other drop-off points. This highlights the need for retailers to offer a seamless and varied returns process to cater to the diverse preferences of their customer base.
The Complex Reality of Omnichannel Journeys
Perhaps the most compelling revelation from the omnichannel flow diagram is that a mere 15% of shoppers complete their entire journey, from pre-purchase to returns, without any physical touchpoints. This challenges the notion of a purely digital customer journey, emphasizing the importance of blending online and offline elements to create a holistic shopping experience.
Digital Shelf and Visibility: Blending the Virtual and Physical
In the backdrop of this evolving landscape, considerations of Digital Shelf (availability, reviews, rating) and Visibility (Share of Ads, Share of Search, Share of Promo, Share of Shelf) play a pivotal role. These aspects, which bridge the virtual and physical realms, influence consumer decisions and contribute to the intricate dance between online and offline channels.
In conclusion, the modern retail landscape demands a holistic understanding of consumer behavior, incorporating digital and physical touchpoints seamlessly. As retailers navigate this complex omnichannel journey, the integration of Digital Shelf and Visibility becomes imperative for sustained success in meeting diverse consumer needs.
Conclusion
In the ever-evolving world of retail, a one-size-fits-all approach is no longer sufficient. The Retail Economics and Auctane report provides a comprehensive snapshot of the intricate dance between online and offline channels throughout the customer journey.
As we look ahead, Shalion emerges as a beacon guiding brands and agencies through the complexities of the modern retail environment, offering advanced solutions for Digital Shelf management and enhanced Visibility analytics.
In the era where the blending of digital and physical elements is imperative, Shalion stands as a strategic partner, enabling brands to stay agile, responsive, and ahead of the curve. Embrace Shalion to unlock the full potential of your retail media strategy and thrive in the dynamic world of omnichannel commerce.
