White Paper
September 24, 2015, 3:11 PM EDT
Author
Contributors
Abstract:
strongly those factors drive behavior. Some key insights:
• More than half of shoppers say they would pay a higher price for the customer experiences they value most
• 77% of shoppers would be more loyal to stores that provided their personal top three customer experience benefits
Table of Contents
How does customer experience impact shopping behavior?
Chris works hard at looking good. In the past, shopping for cosmetics meant stopping at numerous stores, many of which didn’t offer much in terms of loyalty programs. Even the ones that did had limited programs with fixed benefits. Then a favorite retailer that has great products created a loyalty program that puts the customer in control of how and when to use the accumulated points. As a result of being able to choose rewards—from free products, to discounts, to special bonuses for members—Chris is now a loyal customer who rarely shops anywhere else for cosmetics.
Alex used to get nervous buying big-ticket items, worrying about making the wrong choice. Despite exhaustive research, the original packaging from these items would stay in the closet, just in case. But that was before discovering a warehouse club that implemented an easy return policy. Bought it six weeks ago? No worries. Tossed the packaging? No problem. With competitive prices and a wide selection, Alex now shops the warehouse club with total peace of mind. Returns are no longer a hassle and there are no questions asked.
Cameron’s family has style. With two teenagers who love fashion, Cameron’s family used to spend hours searching for coupons and discounts, always on the lookout for the best deals on clothes and shoes. Then they discovered a store they like offers a premium loyalty program—one that applies all coupons and discounts to account purchases automatically. The shopping experience is simple, easy and hassle-free. They no longer have to worry about printing the wrong coupon or having the right discount codes, creating loyal, happy shoppers. Now, the only thing Cameron’s family has to focus on is looking great.
So much so that they increase their loyalty based on which retailer provides their favorite benefits. Of course, price is still an important consideration. But as these stories demonstrate, customers based their decisions on their perceived value—which goes beyond price alone.
The Study Results
Research Methodology
- Self-administered online survey*
- Field Dates: May 22 – 26, 2015
- 1,003 total participants, sourced from national panel (18+, participate in household financial decisions, have a debit, prepaid or credit card and shopped in one of a list of 35 retailers in the past 12 months)
- All references to customers or consumers in this paper refer to survey respondents
Key Finding #1
- Pick your own sale items 42%
- Hassle free returns 41%
- No coupons needed and you always get sale price 40%
- Earn points to redeem for extra savings 33%
When customers were asked to rank which of 27 retail experiences mattered most, certain benefits rose to the top. The top elements chosen were of a practical nature - things that eliminated stress, gave shoppers more control and made their shopping experience simpler and easier.
This feature was the highest rated item in the survey, with 42% of customers stating that it was the most important criterion. This is different from lowest price. It’s about giving shoppers the control to personalize their experiences based on their unique needs and wants.
Knowing an item can be returned is valuable to customers, and retail brands with generous return policies are highly regarded. Some of the favorite benefits are: no time limit on returns, no need for a receipt with a return or free postage on returns.
Receiving the lowest price without working for it reduces stress for customers. Retail credit card value propositions sometimes include “best price” programs, particularly for premium customers, so customers don’t need to clip coupons to automatically get the sale price.
Customers love points-based programs and they drive loyalty behavior for retailers. Over one-third of customers said points programs were important for the extra savings or gift cards generated. If programs are easy for customers to accumulate and redeem points, they will often spend more.
Key Finding #2
- Access to The Cardholder’s Club - enjoy coffee or a glass of wine or just relax in a space reserved for cardholders: 8%
- Associates available to carry your purchases to your car: 8%
- Complimentary bottled water and coffee: 7%
- Access to complimentary laptops and tablets when in the store: 6%
- Valet parking means you don’t have to worry about finding a parking space: 6%
Key Finding #3
We asked customers to think about the best store experience they had in the past 12 months. Their feedback fell into distinct categories, which are presented in the chart below. The percentages represent how often the category was selected. Apparel and department store shoppers were most likely to remember excellent associate interactions, while mass merchant customers most often cited stock conditions and selection.
A great customer experience does drive incremental shopping. Over half of surveyed customers say they will shop a retailer more often because of a positive experience in the store.
Key Finding #4
The value of a great customer experience cannot be overstated. Customers tell us they would pay more and remain much more loyal in exchange for a great customer experience.
Conclusion
Percentage of instances feature was selected as most important vs. not important.
- Pick your own sale items—enjoy a discount on the items you select: 42%
- Hassle-free returns—store will stand behind purchases for as long as you have them: 41%
- No coupons needed and you will always get the sale price: 40%
- Prefer to skip all the extra in-store experiences and will wait in line for the lowest price possible: 38%
- Earn points on your purchases to redeem for extra savings: 33%
- Earn points on your purchases to redeem for store gift cards: 31%
- More checkout stations throughout the store: 31%
- More Customer Service representatives located throughout the store: 31%
- Offer “surprise” savings and rewards to randomly selected customers at checkout: 29%
- Free standard shipping: 28%
- Two-day delivery at no extra cost: 22%
- Automatic price checker—the app checks the price and can alert you or send you the item when the price goes below a certain amount: 19%
- Extra hours for members only, every Thursday from 6-9AM and 8-10PM: 18%
- Skip the traditional checkout lines by scanning the items you want to purchase while you shop, or visit our members-only concierge service for immediate checkout: 16%
- Complimentary wi-fi throughout the store and dressing rooms: 13%
- Guaranteed access to a personal shopper when it meets your schedule—have the items you want to look at waiting for you in the sizes and colors you want to choose from: 13%
- Sign up for automatic delivery of your favorite items when they arrive in stores and stop or change automatic delivery anytime you want: 11%
- Alerts available when new merchandise arrives from your favorite brands: 11%
- Drive-thru window lets you pick up your online purchase without leaving your car: 10%
- Priority parking in front of the store: 10%
- Free giftwrap and ribbon, or gift bags and tissues: 9%
- Demonstrations that provide recommendations on new fashions and pulling together your best looks: 9%
- Access to The Cardholders Club to enjoy coffee or a glass of wine, or just relax in a space reserved for cardholders: 8%
- Associates available to carry your purchases to your car: 8%
- Complimentary bottled water and coffee: 7%
- Valet parking: 6%
- Access to complimentary laptops and tablets when in the store: 6%