THE NEW CONSUMER Your blueprint for recession-proof retail - based on research with 1,000 UK shoppers - Conversant
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THE NEW
CONSUMER Your blueprint for recession-proof retail
based on research with 1,000 UK shoppers
HOW WELL DO
Understanding who your shoppers are, what they’re doing and how
they browse and buy across different channels is vital. But shopper
habits are changing fast and will continue to do so as the UK deals
YOU REALLY KNOW
with ‘the worst recession in a century’.
Retail Week and Epsilon-Conversant surveyed 1,000 consumers to find
out what is driving shopper behaviour and brought together a panel of
experts including MyWardrobeHQ chief executive Jane Shepherdson,
YOUR SHOPPER?
Studio Retail Group chief executive Paul Kendrick, Pour Moi chief
executive Michael Thomson and Epsilon-Conversant senior business
development director Ben Foulkes to discuss the findings.
Watch on-demand – How well do you know your shopper?
What did 1,000 consumers tell us?
Looking ahead to 2021, do you feel more, less, or the same level of confidence compared to how you feel right now in 2020 in the following areas?
More Less The same
69%
59%
54%
40% 41% 43% 44% 39% 39%
44%
39%
36 %
33% 33%
31
%
27%
19% 19% 22% 23%
12% 10% 13%
11%
Personal The general The political Ability to make Ability to save Job security Personal Cost of living
finances economy situation major purchases happiness
46 62 %
“It’s been like six years in six
%
months. It’s been a rollercoaster
of what customers want and what
we should do about it… 70% of our
traffic to our website was brand
of consumers said relevant offers new, conversions were hugely up,
and discounts, tailored to them from and our return rates have halved.”
of consumers said discounts or offers brands they like, will encourage them
are the most appropriate messaging to shop. By contrast, just 17% said a Pour Moi chief executive
from retailers right now, with 17% saying more personalised on-site experience, Michael Thomson
factual content such as opening hours. showing that consumers want retailers
Just 15% said content around wellbeing. to proactively reach out to them.
WHAT MAKES CONSUMERS LOYAL TO A RETAILER?
68
“Christmas is going to be big, but it’s going
56% 51% 41% %
to be different. Gifting will be a big thing.
Look at your customer base and when you
get the benefits. Our better customers
come earlier, but customer acquisition said good said regular said high-
comes later – you can then look at how you value discounts quality
put dedicated personalised programmes and offers for products
in for those people to recapture them and subscribers
build that loyalty into next year. That’s of consumers are happy to provide
47%
where the priority lies for us.” said repetitive adverts personal information when shopping
Studio Retail Group chief executive that follow them around online in order to receive a more
Paul Kendrick the internet, or irrelevant tailored shopping experience and
messages. access to discounts and offersThe new Christmas: how retail can recreate in-store magic online
The pressure is on to really deliver on customer experience to drive Retail Week and Epsilon-Conversant surveyed 1,000 UK consumers
sales, with digital channels presenting the biggest opportunities. to find out what is driving shopper behaviour and brought together a
Competition will be fraught as lockdowns send even more customers panel of experts including Pets at Home director of private brands and
online. So, recreating some of that in-store magic, online, and offering innovation Claire Gavin, former Boden marketing director David Lockwood,
unbeatable CX will be critical. But what does that look like? And what and Epsilon-Conversant senior director for client development Michelle
do customers really want this Christmas? Preusch to discuss the findings and the role data will play in driving sales.
Watch on-demand – The new Christmas: how retail can recreate in-store magic online
What did 1,000 consumers tell us? More
Less
Grocery is the only category where over 20% of consumers expect to spend more this Christmas vs Christmas 2019 The same
52% 48% 49% 51%
43 45
%%
45% 43% 44 45
%
%
45% 42% 47%
40% 42% 39% 40%
22% 25%
11% 12% 12% 12% 13% 11% 12% 9%
Fashion Food Electricals Entertainment Toys DIY Homewares Health & beauty General merchandise
(books, CDs and DVDs) (greetings cards, stationary)
Consumers expect to spend more “In-store, it’s much harder to personalise an
experience. Every time a person walks in, they’re
across digital channels than in-stores seeing the same as everyone else - the same
this Christmas vs Christmas 2019 store front, the same aisle, the same sales person.
Online, we can change all of that based on what we
In stores Retailer’s website Retailer’s app Marketplace website Marketplace app Catalogue know about that person. What they like - are they
interested in cats versus dogs, are they interested
More 14 More
% 27 More
% 18 More
% 18 More % 16 More
% 10% in collars but not bowls - we have all of that data,
The same 39% The same 44% The same 48% The same 48% The same 48% The same 45% and we can leverage that online. Online and in-
Less 47% Less 29% Less 34% Less 34% Less 37% Less 44% store experience both have major strengths.”
Epsilon-Conversant senior director for
client development Michelle Preusch
45%
“Like many other businesses, we’ve seen the penetration and
participation of online is up. We know from our surveys people who
didn’t shop online before are likely to now stay online. People shop
in different ways, at different times, and via different channels. As a
The top three factors that will influence
retailer, we need to be there whenever, wherever they want us to be. consumer purchasing decisions ‘more’
of customers just want
The digital piece is really just one of a portfolio of touch-points that
convenience on retail websites
this Christmas vs Christmas 2019
people want to interact with a retailer with. We have to make sure that
our experience across any channel is seamless and gives a single view
and say they are there to A low price A discount Free delivery
simply transact Just 14.5%
of our brand, however those customers want to engage.” want an ‘experience’ and just More 46 More
% 44 More% 46%
Pets at Home director of private brands and innovation Claire Gavin 5.6% want ‘inspiration’ The same 40% The same 41% The same 40%
Less 14% Less 15% Less 14%How to drive loyalty this Christmas
Data-driven strategies to win customers and drive experience
Customer loyalty has always been hard to win, and right now, it’s even harder. Hordes of
consumers have flocked online, providing ample opportunities for retailers if they can cut HAPPY
through the unrelenting noise. And that is a big ‘if’.
BIRTHDAY
Retailers need to understand what consumers want in these extraordinary times and what LOYALTY DATA
that means for loyalty. Data will play a critical role and provide the key to customers’ hearts,
minds and wallets. IS YOUR SECRET
RWRC, the home of Retail Week and World Retail Congress, conducted a survey of 1,000 WEAPON
UK consumers in partnership with Epsilon-Conversant to find out what will help drive loyalty Nearly 68% of consumers are happy
and brought together an expert panel including Cotton Traders chief marketing officer to provide personal information in order
Shona Jameson and Epsilon-conversant SVP of technology for international Joseph Taylor. to receive a more personalised shopping
experience, or to access discounts &
Watch on-demand – How to drive loyalty this Christmas: offers, and this stays north of 60%
Data-driven strategies to win customers and drive experience across every age group.
“We are very data led at Cotton Traders. SIMPLE BRANDS “In 2021 we’ll be seeing a lot of brands
We just need to make the customer ARE WINNING redesigning their programmes, looking
feel that they’re in control and that
makes a huge difference to how much
IN TERMS OF at what really generates value and also
revenue. We’ll see innovation around
they’re willing to provide. They do want CUSTOMER LOYALTY how benefits are delivered, and it will
to have that bespoke and personalised The vast majority of consumers want be beyond points for sure.”
experiences when shopping with us.” convenience at 44.8%. Further to Epsilon-Conversant SVP of
Cotton Traders chief marketing officer this, we found online consumers want technology for international
Shona Jameson functional elements such as clear pricing Joseph Taylor
information (15%), free delivery (23.3%),
and customer reviews (17.3%).
ENCOURAGING “As long as we live up to the customer DISCOURAGING
LOYALTY promise that we’ve made, we’re
seeing loyalty continue - especially LOYALTY
We specifically asked consumers what will any retailers who treat any customer Whereas the things that would
make them more loyal to a retailer and the interaction as an opportunity to bring discourage them from being loyal to
top responses were regular discounts and the humanity of the brand to the a retailer were repetitive adverts that
offers for subscribers at 51.2%, goodwill forefront.” follow them around the internet (47%),
or giveback programmes, such as charity Aequip co-founder and investor and too frequent communications via emails
token schemes at supermarkets at 33%, former Figleaves CEO Miriam Lahage and adverts (40.8%), and a bad website
and online experience such as a website’s experience such as slow site speed or log-
ease of use and free delivery at 30.8%. in-issues (40%).You can also read
