Tag Archives: Digital

The Drum – ‘Regrexit’ or not, smart targeting never been more important for retailers

Regrexit blog

As much as I might want to avoid the subject, it is impossible to look at retail predictions for 2019 without looking through the lens of Brexit. As the uncertainty continues over a possible deal, I want to try and think about the effect it will have on retailers in 2019, what is probably concerning them and what if anything we can do to brace ourselves.

I watched the fascinating Channel 4 live debate show, Brexit: What the Nation Really Thinks, which aired in November. Polling and market research agency, Survation interviewed 20,000 people online across the UK from 20 October to 2 November 2018 in the biggest ever independent Brexit opinion poll. If you didn’t see it, according to the poll if the referendum was re-run, there would be a swing toward remain at 53% to 47% – but that’s neither here nor there right now!

What was interesting, with my retail hat on, was how attitudes to the overall economic outlook of the country and people’s personal finances by age group would impact retail strategy planning their 2019. Overall, the study found that 44% think Brexit will be bad for the economy, versus 31% thinking it will be good. This deteriorating consumer confidence is already being played out on the high street where we are seeing a continuing stream of store closures – not just because of Brexit, but certainly not helped by it.

When you start to delve deeper into the demographics there is a clear picture emerging among the different age groups – as the age group increases attitude to Brexit, economic outlook and effect on personal finances get more positive. While 45 year olds and younger now overwhelmingly have a negative view of the economy post-Brexit, for 55-64 year olds it is much tighter (34% think it will be good, versus 40% bad) and for 65-74 year olds it swings to positive (42% think it will be good, versus 35% bad).

A clear majority of consumers aged 54+ also think Brexit will either be good or make no impact to their personal finances. There are two factors behind this. Firstly, they are after all ‘Generation Wealth’, with more assets and financial independence so therefore less likely to feel they will be adversely impacted. Additionally, as a majority wanted to vote leave anyway, they were clearly unimpressed by what they see as ‘project fear’ from the remain side about some of the reported negative financial impacts.

However, for worried millennials a far different picture emerges. Just 24% think Brexit will be good for the economy versus 50% bad. Meanwhile 44% think it will be bad for their finances, against 18% good. Not surprising when you consider their careers started after the financial crash and they are less secure in their jobs.

So, what does this mean for retailers in developing marketing strategy? Insulated from any of the more negative personal financial impact of Brexit and with more confidence in the country’s future could we see the baby boomers create a mini retail boom?

However, for millennials, worried about their personal financial security as well as the economy, retailers will need to entice them to shop. Millennials seek out experiences which also applies to the way they shop. Retailers need to engage with this audience through the customer journey making any purchase a positive experience. What is the USP versus Amazon for this digital, increasingly disenfranchised demographic?

Having a distinct strategy for the different demographics and understanding their mindset, spending power and intention will be key. Also, being agile and flexible and able to react quickly to the market and buying signals. Just as the outcome of the negotiation won’t satisfy all political parties or a now fractured population, neither will a one size fits all retail strategy. Start planning now to remain relevant to your customer base as we move into unpredictable 2019.

To read the full article visit The Drum.

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Brits want ‘service over sci-fi’ from retailers

The Drum Blog

A study published today by marketing agency Gekko – ‘Service not Sci-fi’ – reveals that UK shoppers would rather deal with real people over robots or artificial intelligence when it comes to shopping.

The study finds that 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32%) blaming an over reliance on technology for this decline. Half of those polled believe that companies in the UK are using technology to save money, rather than improve customer experience.

Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% smart mirrors that show a 360 view of themselves, 16% a virtual reality changing room, 14% augmented reality to help visualise products in the home and only 9% in favour of a talking robot assistant.

When it comes to buying online, 43% of UK shoppers have had their screen freeze while trying to make a purchase. When asked what makes a great bricks-and-mortar shopping experience, 49% of those polled said it was down to having good staff on the shop floor, staff that know the products and staff that go the extra mile (47%). Coupled with this, 61% of the nation would prefer to deal face-to-face when complaining, 59% when enquiring or trying to find out more about a product and 73% when getting a refund.

A third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of the local shop, with a quarter of Brits saying they miss shopping somewhere where people recognise them, 16% confessing they preferred the days when they could talk through a purchase with a someone in-store, and a quarter saying online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also stated as important by 43% of respondents which means that as retailers consolidate their estates, many will notice the effects, further emphasising the need to carefully consider the experience being provided in-store and the staff needed to deliver the experience.

According to the research we waste almost an hour and a half a month – which is 17 hours a year, the equivalent of more than two days at work – interacting with automated technology, only for a human to have to step in and help. Bug bears include getting someone to rectify a problem with the self-service checkout, and ringing customer services and dealing with a recorded voice, only to repeat the details to the person you end up talking to.

Little wonder, then, that 51% of Brits have slammed the phone down during an automated call, as the system didn’t recognise what they were saying. And 47% of shoppers have experienced self-service checkout failure that’s had to be rectified by a shop assistant.

In fact, more than three quarters (77%) of UK shoppers admit they’d much rather use a checkout with a person on it, rather than taking the self-service option. More than 4 in ten (43%) British shoppers would rather speak to a person than an automated system when making a phone enquiry, with almost a quarter (23%) ending up having to complain on social media when their query hasn’t been responded to via the automated service.

Daniel Todaro, managing director of Gekko said: “Everyone is talking about technology and innovation within retail, but our research clearly shows that what consumers really want is the human touch. With traditional retail under more pressure than ever and an astonishing 81% of people feeling that the personal touch has disappeared from shopping, businesses need to focus on the customer experience in these tough trading times to help keep the high street alive.”

The survey was conducted by Ginger Comms in December 2018, speaking to a sample of 1,500 shoppers aged 18+ and representative of the UK population.

To read the full article visit The Drum.

To find out more about our ‘Service not Sci-fi’ research please visit our Research page.

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