Kibo’s 2016 Consumer Trends Report identifies eroding loyalty, rising expectations and high digital demands as the challenges today’s retailers face
Dallas, Texas (February 15, 2016) Kibo, the world’s leading Cloud based unified omnichannel commerce platform, today released its 2016 Consumer Trends Report revealing that digital services are now expected as standard by consumers, with retailers needing to adapt, or risk their losing business all together. With only 5 percent of consumers surveyed preferring to avoid omnichannel completely, it seems digital services are central to the retail experience.
The study of 3,000 consumers in the US and UK identified high digital demands and rising expectations as the defining characteristics of today’s retail experience. In a warning to retailers, the research also found that the digitally demanding consumers’ loyalty is eroding. More than half of US (54%) and UK (56%) shoppers are willing to jump ship to a rival retailer if their preferred method of delivery isn’t available.
With the pace of our everyday lives speeding up, the patience of digitally demanding consumers is wearing thin. Nearly a quarter of Americans and a third of Brits expect short delivery times (two days or less). Four in ten (43%) of US, and more than a third (37%) of UK, consumers would prefer to use in store pickup (click and collect) if the option were available. In addition, nearly one third (29% in both countries) will not buy from retailers unable to offer in store pickup or extended payment options (28% UK; 31% US).
“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,” said Kenneth Frank, CEO, Kibo. “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 armoury. The ability to do this will help ensure customers have no excuse to look elsewhere.”
The Digitally Demanding Consumer: 2016 Consumer Trends Report can be downloaded here.