2016 industry research: retail connected shoppers report€¦ · putting the shopper fully in...

2016 INDUSTRY RESEARCH: RETAIL

Connected Shoppers ReportInsights into the Expectations of Today’s Empowered Shoppers

2016 Connected Shoppers Report / 2

Salesforce Research

IntroductionTo explore the current attitudes and habits of today’s shoppers in three global markets

(Canada, the United Kingdom and United States), Salesforce Research conducted

its “2016 Connected Shoppers Report.” Based on responses from more than 4,000

adults, the research found that retailers no longer dictate the terms of interactions with

shoppers. The cloud, mobile, social and artificial intelligence revolutions have empowered

customers to research and shop in new ways, transforming the relationship from B2C to

putting the shopper fully in control. In addition, new entrants into the retail space, such as

Apple Pay and StitchFix, have disrupted the industry, heightening shoppers’ expectations.

To stay competitive, retailers must supercharge their associates, so they are empowered to

delight shoppers and increase customer satisfaction.

http://www.salesforce.com/research/


Salesforce ResearchI. The Shopper is in Control

Do you research products prior to buying online?

Which of the following channels, if any, do you use today when researching products from the following types of retailers prior to buying online?

Millennials (18-34) Generation X (35-54) Baby Boomers (55+)

Shoppers are prepared before they shop

as never before, as more than three-

quarters (80%) of shoppers research

products before purchasing them online.

While websites are the preferred research

tool for all ages, millennials are more than

three times as likely to turn to social media

and mobile apps (both 48%) than their

Baby Boomer counterparts (both 14%).

20%

No

80%

Yes

Phone

In-person

Website

Email

Social Media

SMS/Text

Mobile App

Chat/IM

Video Chat

Other

“When researching products, millennials are more than three times as likely to turn to social media and mobile apps (both 48%) than their Baby Boomer counterparts (both 14%).”

38%

23%

72%

45%

48%

48%

28%

27%

12%

12%

32%

23%

19%

71%

37%

30%

20%

28%

15%

15%

61%

26%

14%

14%

7%

7%

6%

6%

13%

5%




I enjoy looking at recommended and/or suggested products from retailers (e.g., displaying similar products below the product I am looking at, email with products, suggestions based on prior purchases, banner ads) to help make purchasing decisions.

Retailers are getting better at tailoring their product selection and/or offers to match my preferences.

I like it when I receive a complementary product offer or promotion from a retailer that is based on my purchase history.

Which of the following are true for you?

More than three out of four shoppers

(79%) like it when they receive

complementary product offers or

promotions based on their purchasing

histories from a retailer, indicating a

desire for more personalized shopping

experiences.

Strongly/somewhat agree



I have purchased an item a retailer recommended to me based on past purchases.

I would like to receive real-time offers (e.g., coupons, promotions), while in-store on my mobile device.

I have purchased an item in-store and later received an offer from the same sAtore via another channel (e.g. email, social media advertisement) for the same item that I had already purchased.

Strongly/somewhat disagree



64%

64%

79%

36%

36%

21%

16%

20%

22%




If you have purchased an item in-store and then later received an offer from the same store via another channel for the same item that you had already purchased, which of the following are true for you as a result?

I felt annoyed that prices are different online than in-store.

It made me feel cheated out of a better price.

Convinced me to shop online for future purchases

Made me not want to shop at that retailer again.

Made me lose trust in that retailer.

I returned an item and re-bought it online.

However, retailers should be wary about

how seamless their communications

to customers are, as shoppers who

purchased an item in-store and received

an online offer via another channel for the

same product felt annoyed (47%) and

cheated out of a better price (43%).

Baby Boomers (55+)

All Millennials(18-34)

Generation X (35-54)

I expect a store/brand to know what online research I’ve done on that store/brand’s websiteprior to getting to a physical store (e.g., wishlists, abandoned cart, social media activity).



17%

18%

19%

25%

43%

47%

18%32%

42%

82%

58%68%



Salesforce ResearchII. Impact of Disruptors on the Shopping Experience

Mobile devices and tech disruptors — such

as Pinterest, ApplePay and Uber — have

inserted themselves into the shopping

process, creating new ways for shoppers to

research products, rent clothes, purchase

goods and receive merchandise.

Which of the following are true for you (check all that apply).

How likely are you to visit a showroom or inventory-less store?

I have researched a product online via a mobile device while in-store.

Definitely/extremely/ very likely

I have purchased an item online from my mobile device while shopping in a store (either from that store or another retailer).

Somewhat likely

Not at all/not very likely

Baby Boomers (55+)

Millennials(18-34)


It would help me if a physical store knew about the online research I’ve done on them prior to getting there (e.g., wishlists, abandoned cart, social media activity), so I could receive better service.



27%42%

48%58%

73%

52%

2%

10%

14%23%

28%38%

11%19%

25%

30%

37%40%

38%41%

59%



Salesforce ResearchII. Impact of Disruptors on the Shopping Experience

When buying a product in-store, how would you most prefer to check out/pay for your purchases?

Over a third of millennials have

researched a product online via a mobile

device while in a store (38%), and

nearly one-fourth have even purchased

a product online from a mobile device

while in a store (23%).

Baby Boomers (55+)

Millennials(18-34)


Check out with a store associate at a register

Check out myself using a self-checkout register

Check out myself using my own mobile device or tablet

Check out with a store associate in the store through a mobile device or tablet

Which of the following types of services have you used or subscribed to in the past 12 months?

Monthly subscription services for meals or groceries (e.g., Amazon Fresh, Blue Apron, HelloFresh)

Monthly subscription services for health or beauty products (e.g., Birchbox, ipsy, Target, Beauty Box)

Clothes/accessories rental services (e.g., Rent the Runway, Bag, Borrow or Steal, Le Tote)

None of these

Monthly subscription services for clothes or accessories (e.g. Trunk Club, StitchFix, Trendsend)

6%

1%

1%

1%

2%

4%

5%

7%

9%

12%

13%

15%

64%

95%84%

49%

82%64%

13%24%

31%

1%4%

10%

1%4%

7%



Salesforce Research

Used a mobile payment service (e.g. Apple Pay, PayPal, Samsung Pay) when purchasing an item online.

Used a mobile payment service (e.g. Apple Pay, PayPal, Samsung Pay) when purchasing an item through a mobile app.

Used a mobile payment service (e.g. Apple Pay, PayPal, Samsung Pay) when purchasing an item in a physical store.

II. Impact of Disruptors on the Shopping Experience

Have you visited or shopped at any stores in the past 12 months that had any of the following features?

Merchandise rental services and monthly

subscription services for groceries and

health products are gaining momentum

amongst millennials who have used these

types of services more than twice as much

as Gen Xers and five times as much as

Baby Boomers.

Baby Boomers (55+)

Millennials(18-34)


A store with interactive digital signage (i.e. screens that enable me to ask for assistance, order online, touchscreen).

A store with digital signage (i.e., signage on screens that change with offers, information and more).

A store with augmented reality (e.g. magic mirrors, ability to virtually try on clothing or other items).

None of these

Which of the following have you done in the past 12 months?

17%29%

38%

5%16%

28%

5%9%

18%

5%12%

26%

8%15%

25%

2%6%

14%

88%74%

51%



Salesforce ResearchIII. Better Employees Mean a Better Shopper Experience

Despite the rapid growth of ecommerce,

consumers still enjoy shopping at brick-

and-mortar stores, referencing the ability

to touch and feel the merchandise

(66%) or the option to get merchandise

immediately (61%). However, only a little

over one-third chose the option to get

help from a store associate (38%) as a

reason they like to shop in-store.

In general, which of the following are reasons you like to shop in-store?

How often, if ever, do you ask a store associate for his or her opinion on a product before purchasing it?

TotalI can touch and feel the merchandise

Ability to get merchandise immediately

To avoid shipping fees

I can take advantage of in-store discounts

I discover new things as I browse

I can get help from a store associate

I like the overall in-store experience

Other

To be able to return an item without having to pay return shipping

12% 40% 48%

Always/often

Sometimes Never/rarely

“Only a little over one-third chose the option to get help from a store associate (38%) as a reason they like to shop in-store.”

2%

32%

38%

43%

44%

45%

49%

61%

66%




In fact, just 12% always or often ask a

store associate for his or her opinion on a

product before purchasing it, and less than

one-third who do so trust that the store

associate is always or often telling the truth

when asked (30%).

How often, if ever, do you think the store associate is telling the truth when they give you an opinion on the product? (Base: Ever ask a store associate for his or her opinion on a product before purchasing?)

I typically know more about a store than a store associate.

I typically know more about a product that a store associate.

I typically know more about a brand than the store associate.

I think robots could replace store associates.

30% 55% 16%

Always/often

Never/rarelySometimes









68%

32%

44%

56%

40%

60%

28%

72%




To combat this problem, retailers must

enable their associates with technology

that helps them quickly check store

inventory or pricing and increase their

product knowledge to meet shoppers’

growing expectations. Millennials, in

particular, are open to sharing data

regarding their preferences and would like a

retailer to leverage location-based services

to get better service.

Baby Boomers (55+)

Millennials(18-34)


I would be willing to share data regarding my preferences with a store or brand to receive faster and more convenient service once I am in the store.

I would like a store/brand to know who I am when I walk into a store because of location-based technologies (e.g., iBeacons, RFID, geofencing).





35%47%

56%

44%53%

65%

14%27%

39%

61%

86%73%



Salesforce ResearchIV. ’Tis the Season of Shopping

The holiday season is far from jolly for

more than three-quarters of shoppers,

as 77% of consumers avoid shopping

at physical stores during the holidays.

Crowds (58%), traffic (33%) and the

convenience of online shopping (29%)

are the leading factors.

“Crowds (58%), traffic (33%) and the convenience of online shopping (29%) are the leading factors consumers avoid shopping at physical stores during the holidays.”

Do you avoid physical stores during holidays?

Which of the following, if any, are reasons why you avoid shopping at physical stores during the holidays (i.e., the time between Thanksgiving and New Year’s)?

23%

No

77%

Yes

TotalToo crowded

Traffic

More convenient online

Higher pricing

Lack of time

Not enough inventory

Seasonal employees with less knowledge/service

Other

Limited parking

All

2%

12%

12%

19%

20%

28%

29%

33%

58%



Salesforce ResearchIV. ’Tis the Season of Shopping

And, making matters worse, more than

half agree that they feel overwhelmed with

the various marketing communications

sent by retailers via text, email and

other channels throughout the holiday

season. Nearly three quarters of adults

will research products before holiday

shopping in-store (73%), and will

do so primarily from retailer websites

(41%), printed catalogs (25%), printed

brochures/flyers (24%) and individual

brand websites (24%).

I feel overwhelmed with retail marketing communications (e.g., emails, texts, catalogs) during the holiday season.

This holiday season where do you plan to research gift ideas/shopping plans prior to going into a store to purchase the products?

Total

Total


Online-only retailer website (e.g. Amazon, Wayfair, Jet)

Retailer website (e.g., Target.com, Walmart.com, Macys.com)

Printed catalog

Printed brochure or flyer

Brand website (i.e. go to Levi’s website to look at jeans, the Toyota website to look at cars)

Social media (e.g., Facebook, Instagram, Twitter, Pinterest)

Deal comparison website (e.g. Bizrate, DealTime, Price.com)

Digital flyer (e.g. Flipp, digital circular, online coupon book)

I don’t research prior to going into a store

Other


All

44%

56%

1%

12%

12%

12%

14%

24%

24%

25%

41%

43%


V. Methodology

This survey was conducted online by Harris Poll on behalf of Salesforce October 21-25,

2016, among 2,019 adults ages 18 and older in the United States, among 1,077 adults

ages 18 and older in Canada, and among 1,010 adults ages 18 and older in the United

Kingdom. This online survey is not based on a probability sample and therefore no

estimate of theoretical sampling error can be calculated. The analysis was completed

by Salesforce. For complete survey methodology, including weighting variables, please

contact Annie Meenan at [email protected].


Salesforce Research

mailto:ameenan%40salesforce.com?subject=Connected%20Shoppers%20Report%3A%20Inquiry



VI. Appendices

Individual data breakouts across three global markets (Canada, U.K. and U.S.) based on

responses from more than 4,000 adults.


Salesforce Research



Salesforce ResearchAPPENDIX I — CANADA DATASHEET

2 0 1 6 C O N N E C T E D S H O P P E R S R E P O R T

CANADA DATASHEET


I have researched a product online via a mobile device while in store.

20%32%

24%8%


10%25%

20%16%

In general, which of the following are reasons why you like to shop in-store?

I can touch and feel the merchandise

67%53%

65%78%


43%35%39%

51%


44%37%38%

55%


54%51%53%

58%

Able to get merchandise immediately

66%53%

70%71%


43%41%

38%48%


48%40%44%

56%


34%31%33%36%

I like it when I receive a complementary product offer or promotion from a retailer that is based on my purchasing history.


80%79%82%

78%


20%21%

18%22%

It would help me if a physical store knew about the online research I’ve done on them prior to getting there so I could receive better service.


38%49%

42%26%


62%51%

58%74%


Clothes/accessories rental services (e.g., Rent the Runway, Bag Borrow or Steal, Le Tote)

5%12%

4%1%

Monthly subscription services for clothes or accessories (e.g. Trunkclub, StitchFix, Trendsend)

3%8%

3%1%

Monthly subscription services for health or beauty products (e.g., Birchbox, ipsay, Target, Beauty Box)

5%11%

5%2%

7%Monthly subscription services for groceries (e.g., Amazon Fresh, Blue Apron, HelloFresh)

7%15%

3%



57%55%

60%55%


43%45%

40%45%



45%55%

49%34%


55%45%

51%66%

I would like a store/brand to know who I am when I walk into a store because of location- based technologies (e.g., iBeacons, RFID, geofencing).


25%35%

29%14%


75%65%

71%86%

Baby Boomers (55+)



How often, if ever, do you think the store associate is telling the truth when they give you an opinion on the product?

Sometimes

Always/often

30%26%27%

35%

53%52%55%

53%

Never/rarely

17%22%

18%13%



41%46%

43%37%


59%54%57%

63%


Yes

74%85%

78%64%

No

26%15%

22%36%


Always/often

15%18%

14%15%

Sometimes

43%42%44%44%

Never/rarely

41%40%42%42%



Salesforce ResearchAPPENDIX I — U.K. DATASHEET


U.K. DATASHEET



21%33%

25%7%


13%27%

15%1%



64%52%

61%77%


33%31%

25%41%


39%37%40%39%


37%35%

40%35%


53%45%

52%60%


41%45%

39%40%


40%35%

40%44%


33%30%34%35%



74%70%

78%73%


26%30%

22%27%



40%52%

42%29%


60%48%

58%71%



7%16%

5%0%


5%11%

3%2%


5%13%

4%0%


7%16%

1%



56%58%

53%56%


44%42%

47%44%



40%57%

41%27%


60%43%

59%73%



27%47%

27%11%


73%53%

73%89%

Baby Boomers (55+)




Sometimes

Always/often

25%21%

27%27%

56%51%

59%58%

Never/rarely

18%28%

14%15%



44%48%49%

37%


56%52%51%

63%


Yes

76%85%

78%68%

No

24%15%

22%32%


Always/often

8%10%9%7%

Sometimes

40%43%

36%41%

Never/rarely

52%47%

55%53%



Salesforce ResearchAPPENDIX I — U.S. DATASHEET


U.S. DATASHEET



31%47%

37%14%


14%24%

18%3%



66%56%

68%73%


37%35%

33%43%


48%47%

44%53%


56%57%

53%58%


65%56%

68%68%


44%42%

46%44%


47%44%47%50%


29%30%29%29%



82%82%83%83%


18%18%17%17%



39%55%

43%25%


61%45%

57%75%



6%12%

5%1%


5%10%

5%1%


8%13%

10%2%


8%15%

3%



55%58%

50%57%


45%42%

50%43%



50%57%

51%45%


50%43%

49%55%



25%35%

26%16%


75%65%

74%84%

Baby Boomers (55+)




Sometimes

Always/often

33%30%

36%33%

55%54%52%

57%

Never/rarely

13%16%

13%10%



48%49%

53%43%


52%51%

47%57%


Yes

82%85%83%

78%No

18%15%17%22%


Always/often

12%17%

14%6%

Sometimes

35%35%

31%39%

Never/rarely

53%47%

55%55%


2016 industry research: retail connected shoppers report€¦ · putting the shopper fully in...

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