US holiday shoppers want "immerseive experiences" in retail, says report

By

Benjamin Fitzgerald

Published
Aug 26, 2016

With the first half of 2016 finished, US retailers need to start thinking about what’s to come in the back half of the year: holiday shoppers. In 2015, US retail sales saw a moderate growth of 3% despite unforeseen weather events and a soft retail environment. But the biggest spike was during the holiday season, where online and non-brick-and-mortar store sales grew by 9%. And, as much as 40% of yearly US sales come during the critical holiday season, a huge chunk of the yearly revenue pie.

With the majority of US shoppers opting for retail stores during the festive season, as well as the increase in mobile app usages, retailers need to reconsider a holistic approach to operations to stand out from competitors, according to a recent report.

The 2016 Epilson Holiday Shopping survey found 87% of holiday shoppers are still very likely to purchase at stores this year, with 75% of total credit sales are likely to happen in the store environment, according to information obtained by Alliance Data. Furthermore,16% of revenue is at risk (on average) by the retailer due to poor customer experience, according to a 2015 study conducted by LoyaltyOne. In addition, 83% of consumers said an exceptional salesperson gives retailers a big advantage.

"Retailers need to commit to providing an outstanding in-store experience", if they are to stand out from the crowd, said Epilson authors in their report.

With a spike in instore retail, mobile remains pivotal. According to Google, more than half of all web traffic now comes from smartphones and tablets, and the search engine recorded a notable increase in searches for “where to buy/find/get” over the last year. Around 55% of shoppers are looking at products online before buying in store; 54% look in stores before going online to find the best deal; and 60% of shoppers prefer to return items to a store, at which time 70% will make additional purchases, found the report.

Mobile app usage also continued to exceed that of mobile browsers for the first time in Q1 of 2016, said the report. But, the new technology requires personalisation. Customised messaging is being delivered through the convergence of customer data and marketable applications. In a 2016 LoyaltyOne Technology & Personalisation Shopping Study, 70% of millennials said mobile is important when choosing which offers to engage with; 72% of them use more mobile apps to look up promotional offers today than in the past.

According to Google, more than half of all web traffic now comes from smartphones and tablets, and the search engine recorded a notable increase in searches for “where to buy/find/get” over the last year.

"New platforms are helping brands streamline content and go beyond segmentation for a more tailored, one-to-one interaction," said the report authors, as retailers create a sense of inclusion and loyalty to their brand.

54% of respondents of the Alliance Data Loyalty study said they are loyal to brands that provide a great shopping and purchasing experience. Moving on, 56% of them said they would recommend those brands to their friends and family.

"To capture that [holiday] spend, [retailers need to] continue to chase what’s next, trying and testing new ways of blending technology and immersive experiences," concluded the report authors.

"Explore ways to showcase the latest innovations and products, connecting to customers in more relevant and meaningful ways. Provide them a place to interact and engage with family and friends. Create the moments that will make their path to discovery and purchase more interesting."