This week, Kibo released its 2016 Consumer Trends Report, identifying the largest challenges today’s retailers face. The most concerning trend the report uncovered is that the digitally demanding consumers’ loyalty is eroding. The study revealed that more than half of United States (54%) and United Kingdom (56%) shoppers are willing to jump ship to a rival retailer if their preferred method of delivery isn’t available.
In addition to eroding loyalty, the study of 3,000 consumers across the United States and United Kingdom identified high digital demands and rising expectations as the defining characteristics of today’s retail experience. With the pace of our everyday lives speeding up, the patience of digitally demanding consumers is wearing thin. Digital services are now expected as standard by consumers, with retailers needing to adapt, or risk losing their business all together.
Other findings from the study include:
- Nearly a quarter of Americans and a third of Brits expect short delivery times (two days or less)
- Four-in-ten (43%) of U.S., and more than a third (37%) of U.K., consumers would prefer to use in-store pickup (click-and-collect) if the option were available
- Nearly one-third (29% in both countries) will not buy from retailers unable to offer in-store pick-up or extended payment options (28% U.K.; 31% U.S.)
When we discussed the study’s findings with Kibo CEO, Kenneth Frank, he said: “As the marketplace becomes increasingly crowded, retailers need to remain a step ahead with their digital services and fulfillment options to ensure the loyalty of their customers. Most consumers have their preferred places to shop, yet, retailers’ lack of progression toward offering a true omnichannel experience can erode their customers’ loyalty. As such, the only option left open to many consumers is a move to the closest competitor who will.
“The speed of change in the retail landscape is relentless. Embracing modern technologies is especially crucial for retailers and manufacturers looking to compete with the likes of Amazon and other Internet giants setting the digital benchmark,” Frank continued. “The ability to effectively route orders to match where there’s most demand, using a cost-effective cloud-based advanced order management system, is a critical component of any modern retailer or manufacturer’s armory. The ability to do this will help ensure customers have no excuse to look elsewhere.”
If you are interested in learning more about the trends and challenges facing retailers today, you can download The Digitally Demanding Consumer: 2016 Consumer Trends Report here.