- New research shows lost sales for retailers not accepting online returns in-store
- 8 out of 10 shoppers want to pick ‘n’ mix shopping in-store, online and by catalogue
- UK shoppers are more net-savvy than their US peers - web research dominates in-store shopping habits - 73 percent of 16-24 year olds research online before hitting the shops
LONDON – 29 May 2008 – UK retailers failing to offer online and phone shoppers an in-store returns option are losing sales according to new research from Ipsos MORI, commissioned by Sterling Commerce. Allowing customers to return goods in-store provides an extra opportunity to sell with 81 percent of shoppers likely to get a replacement item. Nearly half the shoppers polled also believe they would make additional purchases. 9 out of 10 customers think it’s important to be able to return merchandise to a store even if it was purchased online or over the phone, yet only half (53 percent) find it easy to do so. This may be due to a lack of automation at store customer services.
“With online sales continuing to rise (first quarter sales 2008 increased by 50.5 percent on Q1 2007 according to the latest IMRG Capgemini e-Retail Sales Index), while high street sales struggle, retailers should be trying to find extra opportunities for shoppers to buy,” comments David Hogg, Sterling Commerce.
According to the research, 82 percent of consumers in Great Britain want to cross channel such as pick ‘n’ mix between shopping in-store, online and by catalogue, with no difference in service between channels:
· 86 percent want the option of having merchandise delivered to their home or picking it up in-store after purchasing online (compared to only 56 percent in a parallel Sterling Commerce US study in January 2008)
· 90 percent want to be able to return merchandise to a store even if it was purchased online or over the phone (81 percent of US consumers)
· 44 percent say it’s important that call centre staff have access to a record of what shoppers have viewed online (32 percent of US consumers)
Web research shapes in-store buying behaviour
Online research is influencing in-store shopping habits, especially for younger adults and cash rich, time poor AB[1] consumers. British shoppers are more net-savvy than their US peers and want a more closely tied in-store and online experience:
· 66 percent research products online before buying in-store (compared to 57 percent in US); rising to 73 percent of 16-24 year olds and AB shoppers
· 48 percent want a web kiosk in-store to conduct product research (37 percent of US consumers)
· 47 percent want access to their web account while shopping in-store (35 percent of US consumers)
· 26 percent use a coupon or rebate offer found online; 34 percent 16-24 year olds
“UK consumers clearly expect a seamless multi-channel shopping experience. Retailers have made considerable investment in their stores, catalogues and online transactional sites, yet many are let down by the lack of integration of their channels and back-end systems which is preventing joined-up visibility and processes. The end result is poor customer experience and lost sales opportunities,” said David Hogg, Retail/CPG Marketing Manager at Sterling Commerce.
“The lack of consistency in off- and online experiences will likely lead to further erosion of high-street sales. If consumers believe there is little integration between channels, they may well vote with their feet and complete transactions online after doing their product research.”
Retailers have some work ahead of them in providing the same standard of customer service for online shopping as in-store. A third of consumers interviewed find it difficult to return merchandise to a catalogue or online vendor, compared to only 12% having difficulty in returning items to a store. “In a market with little differentiation beyond brand, those who crack this challenge first will gain market share at the expense of their competitors,” explained Hogg.
Ipsos MORI’s online omnibus service, i:omnibus, surveyed 1,000 adults aged 16 to 64 in Great Britain, France and Germany about their buying habits and preferences across store, catalogue and Internet retail outlets. The study was rolled out in late March 2008.
Access to additional research, including data for the French and German markets, may be provided upon request.
[1] Definition of AB social grade: A, non-manual workers who have reached the very peak of their profession; B, very senior non-manual workers who follow closely behind A`s, e.g. senior managers or director level.
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About Sterling Commerce
Sterling Commerce, a subsidiary of AT&T Inc. (NYSE:T), helps customers thrive in a global economy by connecting their business communities, processes, people and technology. More than 30,000 customers worldwide – including 80 per cent of the Fortune 500 – use Sterling Commerce solutions for business process integration and supply chain management to improve profitability inside and outside their company walls. Headquartered in Columbus, Ohio, Sterling Commerce has offices in 19 countries and most major cities around the world. More information can be found at www.sterlingcommerce.co.uk
For media enquiries please contact:
Willemijn Steegenga
Sterling Commerce
+31 (0) 20 560 5794
willemijn_steegenga@stercomm.com
Valerie Holloway
Nelson Bostock Communications
Tel. +44 (0) 20 7792 7420
valerie.holloway@nelsonbostock.com