Digital Shopper Relevancy - Profiting from Your Customers' Desired All-Channel Experience - Capgemini
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Consumer Products and Retail the way we see it Digital Shopper Relevancy Profiting from Your Customers’ Desired All-Channel Experience
Contents
Introduction 3
Executive Summary 4
The Many Faces of the Digital Shopper 10
The Growing Role of Digital Channels:
Spanning the All-Channel Shopping Journey 18
• Awareness: The Internet is the Place to Learn 23
• Choosing: Price and Product Specs Remain Key Factors in
Selecting an Item 25
• Transaction: Where In-Store Technology Plays a Larger Role 29
• Delivery: ‘Let Me Choose My Own Way of Getting It’ 33
• Aftersales Care: Call Center Use Varies Widely 35
The Future of Digital Channels for Shopping 38
Conclusion and Recommendations 42
© 2012 Capgemini. No part of this document may be modified, deleted or expanded by any process or
means without prior written permission from Capgemini.
2 Digital Shopper Relevancy
Consumer Products and Retail the way we see it
Introduction
How different is the use of digital The study focuses on five product
channels during the shopping journey categories: food, health and personal
in developing countries compared with care, fashion (clothing, footwear,
more mature markets? accessories), do-it-yourself home
improvement (DIY) and electronics. The
Is there a clear segmentation of
findings are based on 16,000 interviews
shoppers based on their shopping
with people who have used technology
behavior and preferences across all
16,000
during the shopping process across
channels (for example, taking into
16 countries, representing developing
account different behavior for women,
as well as mature markets: Australia,
tech-shy or older people)?
interviews Brazil, Canada, China, Finland, France,
Germany, India, Italy, Mexico, Russia,
When are retailers and manufacturers
relevant to digital shoppers in their Spain, Sweden, Turkey, the United
all-channel experience, such as with Kingdom and the United States.
social media and smartphones – and
The research helps uncover the
how does this differ depending on the
many faces of today’s technology-
shopper segment?
enabled shopper and demonstrates
The answers to these questions and that shoppers are no longer loyal to
more can be found in Capgemini’s new an individual channel but rather to an
“Digital Shopper Relevancy” research experience across all channels. The
16 report.
Studying shopping behavior has long
majority of those surveyed said they
expect the seamless integration of the
online, physical and mobile shopping
countries been a focus for Capgemini. Over the
experience by 2014.
past decade we have surveyed tens
of thousands of consumers around The executive summary that follows
the globe as part of our “Consumer provides an overview of key findings
Relevancy” and “Future Consumer” from our “Digital Shopper Relevancy”
research programs. In these earlier study. And the ensuing sections offer
studies, the emphasis was largely on more in-depth data and analysis of
shopping behavior patterns in physical today’s digital shopper, their behavior
stores. and preferences across the All-Channel
Shopping Journey – from Awareness
With our new “Digital Shopper
through Aftersales Care – and the
Relevancy” research we have expanded
changes they envision for shopping
the focus to all channels, including
channels in the future.
those in the digital realm. Our objective:
to understand how a range of channels We are confident that the findings
and devices – from smartphones of Capgemini’s “Digital Shopper
and mobile apps to websites and Relevancy” study will provide
in-store kiosks – are used and valued organizations with insights into changing
by shoppers during the All-Channel shopper dynamics. We believe that
Shopping Journey, and to help retailers those insights can lead companies to
and consumer products manufacturers gain a better understanding of how and
understand how to profit from these where to invest in capabilities across all
insights. channels.
3
Executive
Summary
4 Digital Shopper Relevancy
Consumer Products and Retail the way we see it
Being a shopper today is more exciting The Journey of the Digital about setting up a commerce website,
than ever. The consumer products and Shopper being active on Facebook or developing
retail industry is undergoing significant a mobile app; this is about addressing
transformation largely because of Capgemini’s “Digital Shopper the specific needs of shoppers in the
the way that people choose to shop Relevancy” study provides insight into context of how they live their daily lives.
and consume. They are enabled when, where and how shoppers want
to interact with a retailer or consumer (Note: When we talk about “digital
with technology that allows them to
products company through various shoppers” we mean shoppers who
approach the shopping process in a
channels and locations across the use one or more digital technologies or
different way than they have in the past.
phases of the All-Channel Shopping channels in one or more phases of their
Shoppers expect to find information Journey: Awareness, Choosing, shopping journey.)
in multiple sources and formats. Transaction, Delivery and Aftersales
They are looking for consistency Care (Figure 1).
and convergence among different
technologies and channels. And they This insight is crucial for companies to
have no predefined views about what be able to serve these digital shoppers
“belongs” in specific channels, but will in a relevant manner. This is not just
use whichever channel or device is
most relevant.
Figure 1: The All-Channel Shopping Journey
All-Channel Shopping Journey
Awareness Choosing Transaction Delivery Aftersales Care
Maria gets her Maria uses Maria doesn't really Using her phone, Maria gets personalized
Mobile
ideas from her her social network differentiate Maria requests information on
phone and shops and phone between mobile delivery to her accessories and
at special sales to let her friends and online as she house, her matching separates
events at the mall help choose does everything boyfriend's house for her recent
through one or school, purchases
device whichever is
more convenient
James’ goods arrive at
James doesn’t get his home delivery box James will send
James uses With one click feedback to the retailer
e-mail James adds these involved in the at his pre-agreed
transactional element regular time unless he on his mobile if there is
suggestions to to his regular something in his order
of his regular intervenes with a
At Home
supplement his online he is not happy with
regular online replenishment purchases as they change of
order happen automatically circumstances
purchases
Anna gets alerts on
her phone about the
Anna chooses Anna will order from a delivery status of the
online or during kiosk in store or back order
an experiential at home after she has
Anna takes shopping trip,
inspiration both chosen her goods Anna buys extended
depending on the
from online and category products and services
from her mall that she sees in
Store
visits showroom-style stores.
Any issues she deals
with at home online
Source: Capgemini
Note: The “Digital Shopper Relevancy” study tracked shopper behavior and attitudes toward the following channels and devices: Internet sites, e-mail (such as newsletters and offers),
in-store technology (such as kiosks), social media, smartphones (specific apps) and phone (via call center).
5
Key Findings The research uncovered a number of key findings.
T here is no “one” digital using blogs and social networks to
find consumer recommendations and
shopper. reviews, although they are less likely
We identified a variety of different than younger shoppers to follow
types of digital shoppers, each using retailers on social media. In addition,
channels and devices in different ways a surprising number want to receive
during their shopping journeys. Their location-based messages and offers
behavior is impacted by factors such as from retailers via digital channels.
age, gender, product category, journey Overall, shoppers in the older age
“
phase, market maturity, and attitudes groups are less interested in using
and expectations about technology. mobile apps, although they do see
We found some overall behavioral value in in-store technology such as
differences, for example: kiosks and digital devices integrated
Online stores • Female shoppers: Women are
into shopping carts.
need to provide all generally more engaged than men The differences were less pronounced
when it came to demographic factors
product information when using digital channels. They
are more interested than men such as education and income levels.
that is available.” in receiving personalized offers,
recommendations and information
However, demographics are only one
factor impacting shopping behavior.
Digital Shopper from Brazil about new products. In addition, A detailed segmentation analysis
women are more interested than identified six distinct segments of digital
men in using digital devices inside shoppers: Techno-Shy Shoppers,
the physical store to order products Occasional Online Shoppers, Value
that are not available in the store; Seekers, Rational Online Shoppers,
they are also more interested in the Digital Shopaholics and Social Digital
ability to easily compare different Shoppers.
products before making the final Each segment uses digital channels
purchasing decision, and in being and devices in different ways during
offered visual aids (such as “how- their shopping journeys. For example,
to” videos) to help them choose the Digital Shopaholics are early adopters
most suitable product. and experimenters; they use digital
• Older shoppers: Not surprisingly, channels and devices like smartphone
older shoppers place less apps and in-store technology very
importance than their younger actively throughout the shopping
counterparts on digital channels in process. In contrast, Value Seekers
general. But this doesn’t mean they are price-sensitive shoppers with low
don’t see value in these channels. interest in digital shopping and new
In particular, they are heavy users of technologies. They shop online primarily
Internet sites, especially during the to find the best deals on products
early phases of the shopping journey. they know they want and seldom use
Older shoppers are interested in smartphone apps, social media or in-
store technology when shopping.
6 Digital Shopper Relevancy
Consumer Products and Retail the way we see it
S ignificant differences media and blogs. By comparison, less
than half of shoppers in the mature
exist between digital markets of US, Canada, France,
Australia, the UK, Germany, Finland and
shoppers in developing Sweden are interested in this capability.
markets and those In the middle are Italy, Russia and Spain,
where a little over half are interested in
in mature markets. using social media and blogs to learn
The research makes it very clear that about new products.
digital shoppers rule in developing
D
“
markets. Digital Shopaholics and Social
Digital Shoppers form the majority of
igital shoppers are
digital shoppers in China, India, Brazil, focused on core
Mexico and Turkey. By comparison,
these segments account for a smaller
functionality like price, I expect
percentage of the total digital shopper product specifications
population in the other markets. In most discounts and
and delivery information.
of the mature markets, the Rational
Online Shoppers are dominant. Digital shoppers, especially those in promotions
Shoppers in developing regions
mature markets, want retailers and
consumer products companies to get
specifically designed
place greater importance on all digital
channels, regardless of the phase of
these basics right before they will be for digital channels,
open to engage. When researching,
the shopping journey. This may be due comparing and choosing products clearly differentiated
in part to the lack of traditional retail
infrastructure in these markets as well
through digital channels, half or more
of respondents said that factors such
from those available
as the tendency in developing markets
to “leapfrog” entrenched approaches
as clearly marked product price, at the traditional
availability and delivery charges, and
in favor of the latest tools and formats. comprehensive product information store.”
For example, 72% of respondents from were extremely important. Of lesser Digital Shopper from Spain
India and 69% from China said they importance to respondents are options
purchase more products in a single such as having content in digital
transaction online than in a physical channels tailored to their profile and
store, compared with just 24% of those preferences.
from Finland and 31% from the US. And
73% of shoppers from India and 74% Shoppers also made it clear that
of those from China prefer to be offered they expect online prices to be lower
additional product suggestions online than those in physical stores; this
vs. 34% in France and 36% in Australia. was cited by 73% of all respondents.
Digital Shopaholics and Social Digital
Shoppers in developing markets are Shoppers are most likely to think online
also more engaged with retailers and prices should be lower. More than 80%
consumer products companies through of these more digital-savvy shoppers
digital channels. Nearly three-quarters said online prices should be lower
of respondents from India and 68% of vs. about 60% of non-digital-savvy
those from China said they would like respondents.
to be able to follow retailers through
T he Internet remains the
social media, far more than those in the
mature markets.
primary channel for
Interestingly, we found that three
countries – Russia, Italy and Spain – most digital shoppers.
often fell somewhere in between the Across the phases of the shopping
developing and mature markets in journey, Internet sites remain the
terms of their digital shopping behavior. dominant digital channel in all the
For instance, more than two-thirds of product categories studied, followed by
shoppers in the developing markets of e-mail. For example, 79% of electronics
India, Mexico, Brazil, China and Turkey shoppers said the Internet is important
said they are interested in finding out during the Awareness phase; 74% of
about new products through social DIY shoppers said the same; 73% of
7
Key Findings
S eparating hype from
fashion shoppers; 70% of health and
personal care shoppers; and 59% of
food shoppers. Similar results were reality is critical for
recorded for the other journey phases.
emerging digital channels
However, channels such as social
media, mobile apps and in-store kiosks
like social media and
are close behind, with their relevancy smartphone apps.
varying depending on the journey phase Plenty of attention is being paid by
and country. Phone (via call center) is retailers, consumer products companies
the least important channel, except in and the media to these new digital
the Aftersales Care phase. channels. And for good reason, given
“
P
the hype surrounding them. However,
roximity matters it’s important to understand who is
really using these channels. Overall, only
when it comes to about half of shoppers expect that the
To improve personalization. use of social media and mobile apps
Customers appear to be of two for shopping will increase in the coming
the usage of digital mindsets regarding personalization three years. But the number jumps
channels in the during the All-Channel Shopping
Journey. They express an interest
considerably in the developing markets,
and among younger shoppers, Digital
purchasing process, in certain types of personalization Shopaholics, Social Digital Shoppers
when shopping online, but are less and those shopping for high-end
retailers and comfortable being recognized in the products such as electronics.
manufacturers should physical store. Consider that 61% said
they want online stores to remember
Understanding these differences is
provide an integrated their personal information and payment
essential in determining where to make
digital investments, particularly in new
methods to speed up the shopping
experience between process. But only 41% want to be
channels like social media and mobile
apps. For example, in mature markets,
physical and digital identified through digital devices (such
as their mobile phones) when entering a
companies would do better making
touchpoints.” physical store.
careful, selective investments in mobile
apps and social media at the moment,
Digital Shopper from Italy This seemed somewhat counterintuitive but in developing markets those
given concerns surrounding privacy channels are more relevant and should
in digital channels. But the shield of be the first priority for a digital strategy
anonymity that exists in the digital world and investment.
may make shoppers more comfortable
sharing personal information online Loyalty – and Spending –
than in the physical store. Respondents Across All Channels
in Sweden and Finland are least likely
Our study findings make it clear
to share information in-store, while
that shoppers are no longer loyal to
shoppers in India are most likely to do
an individual channel but rather to
so.
an experience across all channels.
Also here we see a significant difference Consider that the majority of shoppers
between shoppers in mature vs. said they are likely to spend more
developing countries. For example, 80% money at a physical store if they use
of shoppers in India and 73% in China digital channels to research the product
said they want to receive personalized prior to purchase. In addition, they
offers and recommendations through said they will spend more money with
digital channels. This compares with a particular retailer if products are
35% in Sweden and 38% in Finland. available anytime via any channel.
This point was reinforced in the
qualitative comments from shoppers
across the countries. “To improve
the usage of digital channels in the
purchasing process, retailers and
8 Digital Shopper Relevancy
Consumer Products and Retail the way we see it
manufacturers should provide an
integrated experience between About the Study
physical and digital touchpoints,” said a Capgemini worked with ORC
respondent from Italy. International, a London-based global
research firm, to conduct the “Digital
Being Relevant for Digital Shopper Relevancy” online study.
Shoppers ORC International surveyed more than
16,000 consumers in 16 countries:
Our research demonstrates that
Australia, Brazil, Canada, China,
shoppers expect an integrated
Finland, France, Germany, India,
experience across all channels but Italy, Mexico, Russia, Spain, Sweden,
aren’t yet getting it. Nearly 60% of Turkey, the United Kingdom and the
respondents said they expect channel United States.
“
integration to be the norm by 2014, but
more than half said that most retailers The composition of the consumer
currently are not consistent in the sample in each country was based
way they present themselves across on projectable national samples
channels. representative of the population from
the standpoint of age and gender.
I use the
Understanding how shoppers are using
channels and devices in the context of
Additional demographic factors
examined included income, education,
Internet mainly to
their daily lives is a critical starting point employment and marital status. All acquire product
to serve them in a relevant manner.
But to realize a relevant all-channel
respondents had used digital channels
and/or devices for shopping in the three information, but
experience is no easy task. Providing a
seamless interaction across channels is
months prior to taking the survey, and
they were asked about their degree of
decide on purchases
challenging for retailers and consumer online shopping, use of mobile apps only after seeing
products companies and requires and their technology adoption rate.
considerations that impact the entire
Respondents were asked about their
and trying on the
enterprise. These include shifting
from a product- or feature-focused
purchase behavior in five product product.”
categories: food, health and personal
approach to a consumer- and shopper- care, fashion (clothing, footwear, Digital Shopper from Finland
focused approach across all channels, accessories), do-it-yourself home
and integrating processes such as improvement (DIY) and electronics. And
merchandising, order fulfillment and they were surveyed about their use
inventory management by category of numerous channels and devices at
rather than by individual channel. each phase of the shopping journey:
We believe the insights contained in this Awareness, Choosing, Transaction,
report can help retailers and consumer Delivery and Aftersales Care.
products manufacturers determine how In addition, respondents were asked
they can profit from customers’ desired for their predictions about the role
all-channel experience. The data we of various digital shopping channels
have collected goes far beyond what over the coming years and to identify
we have published in this report – the developments they would like to see
research also includes information on to improve their shopping experience
how digital shoppers view the relevance across channels. Finally, they were
and performance of key retailers and asked to rate how important five key
brands in the respective countries. shopping attributes will be to them
These insights can translate into direct over the next five years in deciding
business benefits. how and where to buy products and
services. These attributes are access,
Capgemini has further developed experience, price, product and service.
our original “Consumer Relevancy” Consumers were also asked to rate
thought leadership into a “Digital their top three retailers and brands in
Shopper Relevancy” framework and the different categories and on these
methodology. With these tools, we can five attributes.
help retailers and consumer products
companies make the right decisions The study’s quantitative data was
supported by additional
to become more relevant for digital
qualitative comments from the
shoppers across the phases of their All-
respondents.
Channel Shopping Journey.
9
The Many
Faces of the
Digital Shopper
10 Digital Shopper RelevancyConsumer Products and Retail the way we see it
55% 62%
OF WOMEN ELECTRONICS OF DIY SHOPPERS 65 OR
SHOPPERS WANT TO RECEIVE OLDER USE INTERNET SITES TO
INSPIRATIONAL CONTENT LIKE LEARN ABOUT PRODUCTS
“HOW-TO” VIDEOS
Who is today’s digital shopper? and promotions. Similarly, 78% of
electronics shoppers in the 55 to 64 age
Our research demonstrates that
group and 69% in the 65-plus group
there is no “one” digital shopper. The
use Internet sites during the Awareness
requirements and needs of digital
phase.
shoppers are difficult to untangle but
distinct segments are emerging, each Older shoppers are somewhat less
“
using digital channels in different ways inclined to use digital channels in the
during their shopping journeys. Key later phases of the shopping journey.
factors influencing the experience and Noted a respondent from Canada: “I’m
requirements of digital shoppers include
age, gender, product category, journey
65 years of age and retired. I do shop
and compare online, but when it comes As a senior
phase, market maturity, and attitudes
and expectations about technology.
to purchasing, I still prefer to see the
goods, purchase them and tote them
citizen having
home.” watched how this
Demographics Matter
Gender plays a role in shopping
While they are less likely than younger electronic age has
shoppers to follow retailers on social
behavior, with women generally media, older shoppers are interested developed over
more engaged than men when using
digital channels. For example, they
in using blogs and social networks
to find consumer recommendations
the years what I
are more interested than men in
receiving personalized offers and
and reviews. In addition, a surprising thought would not be
number want to receive location-based
recommendations; this is the case messages and offers from retailers via possible a few years
across all countries but particularly in
India, Russia and Finland. And women
digital channels: 49% of respondents
in the 55 to 64 age group and 38%
ago now is. All I can
are also more likely than men to be
interested in receiving inspirational
of those 65 and older expressed an say is ‘surprise me.’”
interest in location-based offers when
content from retailers through digital learning about products. Overall, Digital Shopper from Australia
channels (such as “how-to” videos). In shoppers in the older age groups are
the electronics category 55% of women less interested in using mobile apps but
shoppers would like to receive this they do see value in in-store technology
kind of content when learning about such as kiosks and digital devices
products, compared with 44% of men. integrated into shopping carts.
Women are also more interested than
men in finding out about new products How Digitally Savvy are
through blogs; receiving messages Shoppers?
and offers from retailers based on We found varying levels of digital
location; and in participating in online sophistication among shoppers: 55%
communities provided by retailers. In of all respondents agree that they are
addition, women are more interested frequent and confident shoppers online;
than men in using digital devices inside 34% regularly use apps and services on
the physical store to order products their mobile phones to research and/
that are not available in the store; they or purchase products; and 35% said
are also more interested in the ability to they are early adopters of the latest
easily compare different products before electronic and technology equipment.
making the final purchasing decision In all cases, respondents in China
and being offered visual aids to help and India were the most likely to see
them choose the most suitable product. themselves as digital-savvy shoppers.
Not surprisingly, older shoppers place Digital-savvy shoppers demonstrate
less importance than their younger certain behavior patterns that
counterparts on digital channels in distinguish them from other shoppers.
general. But this doesn’t mean they For example:
don’t see value in these channels.
In particular, they are heavy users of • They are most likely to use
Internet sites, especially during the technology to learn about products
early phases of the shopping journey: and promotions and to search for
Awareness and Choosing. For example, information to compare and choose
72% of DIY shoppers aged 55 to 64 a product.
and 62% of those over 65 use the • Internet sites are particularly
Internet to learn about products important for digital-savvy shoppers
11to purchase and pay for products. Segmenting the Digital
• Frequent and consistent online Shopper
shoppers are most likely to agree Demographics and technological
that the use of digital channels will sophistication are only two factors
increase over the next three years. impacting shopping behavior. A
“
• Early adopters of technology prefer detailed segmentation analysis led us
to be offered additional product to uncover six distinct digital shopper
suggestions online (cited by 85% of segments1: Techno-Shy Shoppers,
early adopters). Occasional Online Shoppers, Value
I’m 65 years • Digital-savvy shoppers are most likely Seekers, Rational Online Shoppers,
of age and retired. to think online prices should be lower Digital Shopaholics and Social Digital
Shoppers. Each segment uses digital
(cited by more than 80% of digital-
I do shop and savvy shoppers vs. about 60% of channels and devices in different ways
during their shopping journeys.
compare online, but non-digital-savvy respondents).
when it comes to
purchasing, 10 Years + 34,000 Consumers + 18 Countries = Countless
I still prefer Insights Into Shopping Behavior
to see the goods, Our “Digital Shopper Relevancy” study is the latest in Capgemini’s series of consumer
research programs focused on addressing changing dynamics in the consumer products
purchase them and and retail industry.
tote them home.” A decade ago we launched our “Consumer Relevancy” research to help businesses
understand the new language of consumers. We surveyed 16,000 consumers in the
Digital Shopper from Canada United States and nine European countries about their shopping experiences and their
relationships with business.
The research demonstrated that companies needn’t – and, in fact, shouldn’t – try to
be great at everything. Rather than striving for universal excellence, companies should
consider the five basic shopping attributes present in any commercial transaction – access,
experience, price, product and service – and select one on which to dominate and one on
which to differentiate themselves, while ensuring they are at par or meeting the market on
the remaining three.
This research was followed by our “Future Consumer” program, which involved more than
2,000 consumer interviews in four countries: France, the Netherlands, the United Kingdom
and the United States. The research explored the importance of topics such as health
and wellness, product traceability, environmental issues and the use of new/emerging
technologies, and how these issues may impact the way consumers buy, receive and use
products and services in the future.
Our new “Digital Shopper Relevancy” research, involving 16,000 consumers in 16 countries,
picks up where the earlier studies left off: by focusing on how, when and where shoppers
use a wide range of channels and devices – from smartphones and mobile apps to
websites and in-store kiosks.
The sum total of these consumer research programs: 10 years, 34,000 consumer
interviews, 18 countries studied – and countless insights into shopping behavior.
1 Capgemini segmented the respondent base using more than 60 behavioral variables. Methods included
12 Digital Shopper Relevancy
factor analysis and k-means clustering.Consumer Products and Retail the way we see it
Techno-Shy Shoppers
Techno-Shy Shoppers (13.3% of the
respondents) are not interested in new
technologies and do not consider digital
channels or devices important during
any phase of the shopping journey.
They are not frequent or confident
online shoppers and rarely use
smartphone apps. They demonstrate
the lowest rate of online shopping of all the
segments across all product categories.
Techno-Shy Shoppers show some
slight interest in social media but prefer
personal contact via phone/call centers.
And they have very little interest in future
digital developments.
These shoppers include both young
students and older consumers and many
of them come from Continental Europe.
Occasional Online significantly less online compared with
all segments except the Techno-Shy.
Shoppers When they do use digital channels,
Occasional Online Shoppers (16.1% they prefer the Internet, e-mail and
of the respondents) shop online in-store technology, but they rarely
infrequently, with low usage across use smartphone apps or social media
all product categories. They buy during the shopping process.
These shoppers use digital channels
primarily for choosing and comparing
products and tracking deliveries. They
expect digital channels to be in their
native language. Occasional Online
Shoppers value flexible return options,
availability of product information and
customer service.
These shoppers are slightly more likely
to be women than men and also are
likely to be high school and college
graduates; 56% of Occasional Online
Shoppers are older than 45.
13Value Seekers Their typical online purchases include
fashion and personal healthcare items.
Value Seekers (accounting for 13.5% of Value Seekers want an easy shopping
the total respondent base) are price- process with clearly marked product
sensitive shoppers with relatively little information and prices, and convenient
interest in digital shopping and new return policies.
technologies. They shop online primarily
to find the best deals on products they They are more likely to be women (63%)
know they want. Smartphone apps, than men, and are also somewhat
social media and in-store technology more likely to be retired than their
play almost no role in their shopping counterparts in the other segments.
process. Sixty percent of Value Seekers are over
the age of 45.
the shopping journey but they have
little interest in using social media and
mobile apps for shopping.
They know what they want and they
use the Internet to find the most optimal
solution. Rational Online Shoppers value
well-functioning online stores with clearly
marked product information, pricing
and delivery charges, as well as reliable
delivery processes. They do not trust
Rational Online Shoppers reviews in retailer-hosted consumer
communities and do not regard as
Rational Online Shoppers (14.7% of the
important giving feedback and receiving
respondents) are relatively confident
help through digital channels.
online shoppers buying mostly fashion
products and electronics. Overall, Rational Online Shoppers are equally
they are the second most active divided between men and women
online shopper segment (after the and 25% of them are retired. They are
Digital Shopaholics). The Internet is particularly prevalent in Finland and the
their preferred channel throughout UK.
14 Digital Shopper RelevancyConsumer Products and Retail the way we see it
Digital Shopaholics
Digital Shopaholics (17.6% of the
respondents) are early adopters and
experimenters and are prevalent
among the digital-savvy shoppers;
they use digital channels and devices
like smartphone apps and in-store
technology very actively throughout the
shopping journey. These consumers are
true digital shoppers and have a higher-
than-average rate of online purchases
across all product categories. They
place considerable emphasis on the
shopping experience.
They prefer to communicate with
retailers online and are active users
of social media and other peer-to- retail stores will ultimately become
peer networks to share their opinions mainly showrooms.
about products and services. Digital
Shopaholics expect the full integration Digital Shopaholics are more likely to
of the physical, online and mobile be men than women and they work
shopping experience by 2014, and a full time; 60% have a college degree or
vast majority anticipate that physical higher.
Social Digital Shoppers themselves as frequent and confident
online shoppers; however, they
Social Digital Shoppers (24.8% of the purchase less online than the average
respondents) are very optimistic about in all retail segments except electronics,
the use of all digital technology and the likely due to the fact that they tend to
vast majority consider digital channels be younger shoppers and have not yet
and devices to be important in all reached their peak buying power.
phases of the shopping journey. They
tend to be digitally savvy and describe They are heavy users of social media
and want to share opinions and
experiences through digital channels
and are active users of mobile
applications and services. Social Digital
Shoppers trust mobile devices for
paying for products, locating items and
identifying themselves.
These shoppers are more likely to be
under the age of 35 (45%) and 11%
are students. Social Digital Shoppers
are especially prevalent in developing
markets such as India, China and
Mexico.
15Segments Display Similarities fairly often online but tend not to be
and Differences up to date on the latest technology. In
contrast, Digital Shopaholics and Social
We found both similarities and
Digital Shoppers are heavy users of the
“
differences among the six segments.
latest technology. Techno-Shy Shoppers
For example, all segments value
and Occasional Online Shoppers are
the Internet as the key channel at
cautious online shoppers and their use
each phase of the shopping journey.
Keep it simple However, Digital Shopaholics and Social
of the latest technology is limited. For
these shoppers, simplicity and visibility
and easy to buy Digital Shoppers use a wider range of
channels than do the other segments.
of information through digital channels
is key. Said a shopper from Germany:
for non-tech-savvy, In addition, among all segments price “Keep it simple and easy to buy for non-
non-Facebook, is the primary attribute impacting
purchase decisions, followed
tech-savvy, non-Facebook, non-social-
media consumers.”
non-social-media by product. Value Seekers and
The buying behavior of Digital
Occasional Online Shoppers put the
consumers.” greatest emphasis on price, while
Shopaholics and Social Digital
Shoppers is especially affected by the
Digital Shopper from Germany Digital Shopaholics and Social Digital
presence of multiple channels. These
Shoppers demand high standards from
two segments will spend more money
digital channels across all five attributes:
with a retailer if products are available
access, experience, price, product and
at any time via any channel. They will
service. Rational Online Shoppers will
spend more money at a physical store
settle for lower experience levels if they
if they have used digital channels to
get the right product at the right price.
research products before going to
Different patterns of online shopping the store, and are also more likely to
and technology adoption were apparent purchase more products in a single
among the segments. Value Seekers transaction online than in a physical
and Rational Online Shoppers shop store.
16 Digital Shopper RelevancyConsumer Products and Retail the way we see it
Digital Shoppers Dominate in Shoppers in developing regions social media, far more than those in the
Developing Markets place greater importance on all digital mature markets.
channels, regardless of the phase of
The research makes it very clear that Now that we have a view of who
the shopping journey. This may be due
digital-savvy shoppers rule in developing the digital shoppers are, let’s look at
in part to the lack of traditional retail
markets. Digital Shopaholics and Social how, where and when they use digital
infrastructure in these markets as well
Digital Shoppers form the majority of channels and devices during their
as the tendency in developing markets
digital shoppers in China, India, Brazil, shopping journeys.
to “leapfrog” existing approaches in
Mexico and Turkey. By comparison,
favor of the latest tools and formats.
these segments account for a smaller
Shoppers in developing markets are
percentage of the total digital shopper
also more engaged with retailers and
population in the other markets
consumer products companies through
(Figure 2). In most of the mature
digital channels. Nearly three-quarters
markets, the Rational Online Shoppers
of respondents from India and 68% of
are dominant. Around the world, the
those from China said they would like
percentage of Techno-Shy Shoppers
to be able to follow retailers through
is similar, except in France and Spain,
where it is higher.
Figure 2: A View of Digital Shopper Segments by Country (Ranked by Social Digital Shoppers/Digital Shopaholics)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
China 44 33 1 6 2 14
India 50 26 2 5 6 11
Brazil 36 23 8 5 19 10
Mexico 36 22 3 9 21 8
Turkey 35 19 5 9 19 14
Russia 29 17 9 9 25 11
Italy 22 22 10 14 17 15
Spain 25 13 8 16 15 23
US 19 16 19 19 17 10
UK 14 20 30 18 6 12
Australia 17 16 21 16 18 12
France 16 15 24 10 16 19
Canada 19 11 16 21 21 11
Germany 14 14 22 17 16 16
Sweden 12 7 25 20 21 14
Finland 11 7 32 20 17 13
Social Digital Shoppers Rational Online Shoppers Occasional Online Shoppers
Digital Shopaholics Value Seekers Techno-Shy Shoppers
Source: Capgemini
Note: Results are rounded and hence not all bars equal 100%.
17The Growing
Role of Digital
Channels:
Spanning the
All-Channel
Shopping
Journey
18 Digital Shopper RelevancyConsumer Products and Retail the way we see it
56% 58%
OF SHOPPERS SAID THEY WERE OF DIY SHOPPERS SAID
LIKELY TO SPEND MORE IN-STORE TECHNOLOGY IS
MONEY AT A PHYSICAL STORE PARTICULARLY IMPORTANT IN
IF THEY HAD USED DIGITAL THE TRANSACTION PHASE
CHANNELS TO RESEARCH
PRIOR TO PURCHASE
Meet two of today’s digital shoppers. Engaging with these technology- The Internet Still Rules
enabled customers begins with Across all these phases, Internet sites
Marc, a Digital Shopaholic, uses his
understanding the All-Channel remain the dominant digital channel
local supermarket’s shopping app
Shopping Journey across five phases: in all the product categories studied,
to browse recipe suggestions, read
special offers and compile his weekly • Awareness: learning about products followed by e-mail. For example, 79%
shopping list. Once in store, the app and promotions of electronics shoppers said the Internet
guides him to each item. He scans is important during the Awareness
• Choosing: searching for specific
barcodes for important product phase; 74% of DIY shoppers said the
information, comparing and choosing
information beyond what’s on the same; 73% of fashion shoppers; 70% of
a product
label. At the checkout Marc pays health and personal care shoppers; and
• Transaction: purchasing and paying 59% of food shoppers. Similar results
with his smartphone and the total
for the product were recorded for the other journey
is automatically deducted from his
account, the receipt appearing in his • Delivery: tracking product delivery phases. However, channels such as
store app. and related information in-store technology, social media and
• Aftersales Care: providing feedback smartphone apps are not far behind
Sandra, a Social Digital Shopper, (Figure 3).
and receiving help after purchasing a
is shopping online for shoes. She
product, including returns
identifies a pair she’s considering so
that her friends in her social network
can give her advice. As well as various
comments, they also send her links
to alternative options from the same Figure 3: Importance of Digital Channels Across the Customer Shopping Journey
retailer. The nearest store to Sandra is
alerted to the online conversation and Awareness Choice Transaction Delivery Aftersales Care
a representative offers to help her find
the right shoe at the right size. Sandra Internet site 3.94 3.92 3.80 3.92 3.94
visits the store the next day, where her
personal shopping assistant has picked E-mail
3.56 3.47 3.34 3.71 3.79
out several pairs for her to try. (such as newsletters, offers)
Like Marc and Sandra, people today In-store technology
3.31 3.33 3.41 3.25 3.28
seamlessly integrate the use of all types (such as kiosks)
of technologies in their lives, including
the way they shop – at any time, at Social media 3.09 2.99 * * 2.99
any location. As a result, they are
more informed and selective about the Smartphones
2.88 2.82 2.81 2.93 2.91
products and services they want and (specific apps)
use, and are more empowered toward
Phone
the industries that serve them. (via call center)
2.67 2.63 2.70 2.87 3.08
“
Source: Capgemini
Ranked on a scale of 1 to 5 where 1 = not at all important and 5 = extremely important
* While the study shows a low acceptance of social media in the Transaction and Delivery phases of the shopping journey, the
study did reveal that shoppers increasingly prefer to journey through these phases via Internet sites, and many of the sites that
I would like consumers use include a “social” component.
The lines blur when consumers think about social media and transacting online. Social commerce is the blending of social media
to see a comparison sites with e-commerce and is growing rapidly. Social commerce is expanding to include a range of social media tools and content
used in the context of e-commerce. Examples of social commerce include customer ratings and reviews, user recommendations
of prices and quality
and referrals, social shopping tools, forums and communities. Shoppers are increasingly willing to transact via sites such as
Facebook (F-commerce) and conversely socialize their thoughts on traditional commerce sites.
among the same
types of products.”
Digital Shopper from Mexico
19The research uncovered some
Figure 4: Importance of the Internet Ranks Especially High in Developing Markets
differences depending on the journey
phase. For example, e-mail was
Internet Sites
deemed more important during the
Aftersales phase than in the earlier Awareness Choosing Transaction Delivery Aftersales Care
phases. In-store technology was ranked Australia 3.81 3.80 3.59 3.78 3.80
higher during Transaction, and social Canada 3.82 3.79 3.42 3.72 3.77
media was somewhat more important Finland 3.68 3.70 3.45 3.60 3.73
France
during the Awareness phase. 3.76 3.69 3.63 3.80 3.77
Germany 3.48 3.44 3.35 3.42 3.35
While the study shows a low Italy 3.93 3.94 3.79 3.94 3.92
acceptance of social media in the Spain 3.72 3.68 3.60 3.71 3.73
Transaction and Delivery phases of Sweden 3.61 3.52 3.34 3.41 3.51
the shopping journey, the study did UK 3.93 3.89 3.86 3.96 3.85
reveal that shoppers increasingly prefer US 3.92 3.93 3.81 3.93 3.98
to journey through these phases via Brazil 4.30 4.32 4.32 4.43 4.41
Internet sites, and many of the sites China 4.22 4.19 4.13 4.16 4.17
that consumers use include a “social” India 4.38 4.35 4.30 4.31 4.33
component. The lines blur when Mexico 4.22 4.23 4.17 4.31 4.37
shoppers think about social media and Russia 3.96 3.94 3.84 3.97 4.01
Turkey
transacting online. Social commerce 4.27 4.26 4.25 4.30 4.36
is the blending of social media sites Mean score: 4=
with e-commerce and is growing
rapidly. Social commerce is expanding Source: Capgemini
Ranked on a scale of 1 to 5 where 1 = not at all important and 5 = extremely important
to include a range of social media Note: The data above demonstrates that the Internet is typically less important in the Transaction phase, suggesting that it is an
tools and content used in the context important tool for supporting buying in physical stores, not just for buying online.
of e-commerce. Examples of social
commerce include customer ratings
and reviews, user recommendations
and referrals, social shopping tools, Influence of Digital Channels surprisingly, lower prices was identified
forums and communities. Shoppers on Spending Patterns as the incentive of choice, but a few
are increasingly willing to transact via respondents offered alternative ideas.
A key question is how the use of
sites such as Facebook (F-commerce) Said a shopper from the UK: “I’d like to
digital channels may impact consumer
and conversely socialize their thoughts see a wider range of loyalty points given
spending. Our research found some
on traditional commerce sites. for shopping in different channels.”
interesting correlations. For example,
Phone (via call center) was considered 56% of respondents said they were These highlights provide an overview of
the least important channel overall, likely to spend more money at a how digital channels are being used by
except for Aftersales Care, where physical store if they had used digital consumers. In the sections that follow
its ranking went up considerably. In channels to research the product prior we take a closer look at the use of
addition, call centers were considered to purchase. And 55% said they were digital channels in each of the phases of
more important in the developing more likely to spend more money with the shopping journey.
markets than in mature countries. a particular retailer if products were
available anytime via any channel.
The importance of the Internet
was particularly pronounced in the Some respondents suggested incenting
developing markets, with respondents shoppers to use multiple channels. Not
in most of these countries awarding it
an importance ranking above 4 across
all journey phases (Figure 4).2
2 Ranked on a scale of 1 to 5 where 1 = not at all important and 5 = extremely important.
20 Digital Shopper RelevancyConsumer Products and Retail the way we see it
“ I’d like to see a wider range of
loyalty points given for shopping
in different channels.”
Digital Shopper from UK
21What Makes Categories Similar – and Different
In the five product categories that were studied (food, health and Health and Personal Care: All Shopper Segments Well
personal care, fashion, DIY/do-it-yourself home improvement and Represented
electronics) we saw some similarities in how shoppers use and value Across the countries, 42% of respondents had purchased products
digital channels and devices. For example, across all phases of the online in the prior six months. The highest rates were in China,
shopping journey, Internet sites remain the dominant digital channel Turkey and Brazil. Although women dominate in this category, 41%
in all the categories, followed by e-mail. of health and personal care digital shoppers are men. The health and
personal care category has a heterogeneous digital shopper base,
But differences also stood out, including the following:
with all segments fairly evenly represented. All age groups are also
Electronics: Leading the Digital Parade represented in this category.
Shoppers are more inclined to use digital channels and devices
Compared to the average, health and personal care digital shoppers
across the full journey when shopping for high-value electronics
use smartphone apps to gain additional information throughout the
than for other categories. Across the countries, 54% of respondents
shopping journey. They will turn to social media in search of product
had bought electronics online in the prior six months. The highest
information and promotions and are also likely to buy food and DIY
rates were in Brazil, China and Mexico. The electronics category is
products online, providing opportunities for cross-selling.
dominated by Digital Shopaholics and Social Digital Shoppers, and
59% of digital shoppers in this category are men. Food: Online Buying Remains Low
Online grocery shopping is still relatively marginal and practiced
Compared to the average, electronics digital shoppers consider
especially by digitally active consumers such as Digital Shopaholics
themselves to be technologically sophisticated, they use mobile
and Social Digital Shoppers. Across the countries, 29% of
apps at every step of the shopping journey and would also like to
respondents had purchased food online during the prior six months.
use mobile apps in physical stores to gain the optimal all-channel
Of those, 54% are under 34 years old. The highest rates of online
experience. Social media channels are very relevant in the electronics
food purchases were in China, India and the UK.
category, particularly in the Awareness and Choosing phases
Compared to the average, food digital shoppers use a wider range
Fashion: Social Media Rules
of channels during their digital shopping journey and have a higher
About half of shoppers had purchased fashion products online in the
usage rate of mobile apps in all phases of the journey. They also do
prior six months, making it the second most popular category after
not hesitate to contact call centers to gain additional information and
electronics. The highest rates were in China, France and Germany.
are active digital consumers in other retail segments.
Although the shopper base in the fashion category was quite
heterogeneous, Digital Shopaholics and Social Digital Shoppers are DIY: Buying Still Done In Physical Stores
important segments. Younger consumers are particularly likely to buy Across the countries, 21% of shoppers had purchased DIY products
fashion through digital channels. online in the prior six months. Among those, Digital Shopaholics are
the largest segment. Not surprisingly, the category is dominated by
Social media is used in the fashion category more than in any other
men (57% of the respondents), but women also shop online for DIY
product category, particularly in the Awareness and Choosing
products. The highest rates of online DIY purchases were in China,
phases. Mobile apps are also popular in this category for making
the UK and Italy.
transactions and tracking delivery of orders.
Compared to the average, DIY digital shoppers consider themselves
Compared to the average, fashion digital shoppers will purchase
to be digitally sophisticated and use mobile apps to search for
more products in a single transaction online than in physical stores
information. However, in-store technology is also important in this
and are interested in shopping online together with friends.
category, particularly in the Transaction phase, confirming that
much of DIY buying is still done in physical stores.
“ I expect a more integrated usage of
web, mobile and social networks to provide
a real-time, top-level experience.”
Digital Shopper from Italy
22 Digital Shopper RelevancyConsumer Products and Retail the way we see it
44% 80%
OF SHOPPERS WOULD LIKE TO OF SHOPPERS IN INDIA WANT
USE A MOBILE APP TO TO RECEIVE PERSONALIZED
SUPPORT IN-STORE SHOPPING OFFERS AND
RECOMMENDATIONS THROUGH
DIGITAL CHANNELS
Awareness: The Internet is the Place to Learn
Where and how shoppers engage Social media is also a more relevant
with retailers via multiple touchpoints channel in the developing markets
“
and with other shoppers means during this first phase. More than two-
fundamentally rethinking the model thirds of shoppers in India, Mexico,
by which organizations communicate. Brazil, China and Turkey said they are
Retailers need to focus on achieving interested in finding out about new
a full and continual integrated products through social media and I like the idea
conversation with shoppers to develop
awareness via all channels. However,
blogs. Said a respondent from Mexico:
“There should be more communications of smartphones
some digital channels are more relevant
than others in this first phase of the
about new products in different
channels.” By comparison, less than
tracking which stores
shopping journey. half of shoppers in the US, Canada, I’m in and offering
Today Internet sites are the most
France, Australia, the UK, Germany,
Finland and Sweden are interested in deals that my history
important digital channel for learning
about products and promotions, as
this capability. In the middle are Italy,
Russia and Spain, where a little over half
tells them I would be
cited by 72% of respondents across all
countries (Figure 5). This is particularly
are interested in using social media and interested in.”
blogs to learn about new products.
true for high-value categories such as Digital Shopper from the US
DIY and electronics. E-mail (newsletters
and offers) is the second channel of What Matters Most:
choice during the Awareness phase Personalized and Location-
in most countries, named by 58% of Based Offers
consumers overall. During the Awareness phase, shoppers
However, there are variations by are interested in receiving personalized
country, and understanding these offers and recommendations through
differences is essential when deciding digital channels, as well as messages
on a global digital strategy and and offers based on location (Figure 6).
investment. For example, in Finland Said a shopper from the US: “I like the
and France in-store technology is the idea of smartphones tracking which
number two channel during the first stores I’m in and offering deals that my
phase of the shopping journey. And history tells them I would be interested
in the developing markets, especially in.”
China and India, smartphone apps are Developing markets show particular
ranked higher in importance. interest in receiving personalized
One factor driving the interest in mobile
apps in developing regions may be the Figure 5: Digital Channels of Choice to Learn About Products
smartphone penetration rates, which % of consumers saying “important/extremely important”
are growing rapidly in markets such as 0% 20% 40% 60% 80%
India.
Internet sites
“
72
E-mail (such as
58
newsletters, offers)
The moment In-store technology
(such as kiosks) 49
new fashion comes
out, people should
Social media 45
be informed by Smartphones
(specific apps) 40
various means and Phone
channels.” (via call center) 32
Digital Shopper from India Source: Capgemini
23Figure 6: Awareness – Criteria that Matter Most
% of Consumers Saying “Appealing/
Options via Digital Channels
Extremely Appealing”
Personalized offers and recommendations
55%
through digital channels
Messages and offers based on location 53%
Find out about new products via blogs,
53%
reviews and social media
Receive inspirational content (e.g., how-to
50%
videos, recipes)
Similar advertisement on both digital and
49%
non-digital channels
Use in-store digital device (e.g., kiosks, PDAs
48%
in shopping carts)
Mobile app to support in-store shopping
44%
(e.g., store map, special promotions)
Follow the retailer through social media 41%
Source: Capgemini
“
communications. At the high end are A shopper from Sweden agreed: “I
India, where 80% of shoppers said would like to see more fair-trade and
they want to receive personalized offers ecological information, and information
I would like and recommendations through digital
channels, and China with 73%. This
about the way a product is produced
should be displayed.”
to have more compares with 35% in Sweden and
38% in Finland.
information about Interest in receiving personalized offers
Shopper Segment
the product’s and recommendations varies somewhat Snapshot: Awareness
by product category and is highest for Digital Shopaholics and Social
environmental impact fashion, cited as appealing by 58% of Digital Shoppers consider digital
and its components.” respondents, compared with 49% of
food shoppers. This was supported by
channels very important to learn about
products during the Awareness phase.
Digital Shopper from France a number of qualitative comments, such They are particularly interested in
as this one from a shopper in India: receiving personalized offers.
“The moment new fashion comes out, Occasional Online Shoppers and
people should be informed by various Rational Online Shoppers are less
means and channels.” interested in digital channels to learn
Shoppers are less interested in about products or to follow retailers
through social media. However,
following retailers through social media
Occasional Online Shoppers are open
or using a mobile app to support in-
to receiving inspirational content such
store shopping. In a familiar pattern, the
as how-to videos.
interest is higher in developing markets,
particularly India, China and Turkey. Value Seekers are less interested in
smartphone apps during the Awareness
In the qualitative comments, shoppers
phase.
noted additional types of information
they would like to find via digital Techno-Shy Shoppers are the
channels when they are learning about least interested in using digital
products. Said a respondent from channels to learn about
France, echoing similar comments products.
from around the globe: “I would like
to have more information about the
product’s environmental impact and its
components.”
24 Digital Shopper RelevancyYou can also read
