Research shows UK shoppers lack brand loyalty to retailers
Topics: Press Releases
Research is first to measure mobile shopping habits; indicates UK shoppers are less loyal to a particular retail brand and hungry for relevant information
London, UK – 10th November 2010 – Fifty-nine percent of UK shoppers have not decided on the brand they will purchase before researching or buying a product online. Consumers are also beginning to take the web with them when they shop, accessing price comparison sites, social networks and product reviews via their mobile phones – all of which are key factors in helping them to make decisions on which brand to purchase. Nearly half of UK shoppers (42%) have used their mobile phone while shopping, 16% of which used it to compare prices with other stores, according to a new study of 501 UK shoppers. The study – the first of its kind to measure mobile shopping habits – also indicated that most UK shoppers (82%) will visit more than one website before purchasing a product; 17% will visit as many as four.
The study also revealed that shoppers rely on three types of content when making buying decisions: product details, user reviews and personalised recommendations. Eighty-six percent indicated that they used user ratings and reviews for online purchases, while the majority of those surveyed (84%) had researched or purchased products online using recommendations, and 42% of UK shoppers made a purchase that was recommended by an online retailer.
These statistics indicate that access to recommendations, ratings and reviews online – at home or on the go – influence consumers’ purchase decisions, making them savvier than ever before. Customers increasingly shop across channels. Forty-four percent of UK shoppers have “channel-switched,” going online before purchasing a product in store, making the competition for shoppers on the high street as fierce as it is on the web.
“Capturing the consumer’s attention prior to purchase and retaining it following the purchase is the magic formula that all retailers are trying to achieve. We call it ‘stickiness’ and it is becoming even more necessary as cross-channel shopping increases,” said David Selinger CEO of RichRelevance. “Whether it’s a knowledgeable shop assistant in-store or a set of personalised recommendations online, consumers want access to information and products catered specifically to them at a competitive price. Balancing these requirements is the key to making shoppers ‘stick’ to a shop or site to make their purchase.”
“What’s clear is that the rulebook on customer engagement has been torn up. Consumers are making more informed decisions than ever before and they demand access to recommendations and customer opinions such as ratings and reviews across all channels,” said Gerardo Dada, senior director of product marketing at Bazaarvoice. “Retailers must shift focus from the point of purchase to the point of decision – and shoppers are making their decisions online.”
To download a copy of the whitepaper detailing the study’s findings, please visit: http://www.richrelevance.com/newrules/whitepaper
The study was commissioned by RichRelevance and Bazaarvoice, and conducted by Forrester Consulting in September 2010. Forrester conducted research in the UK, France, and Germany, with 501 respondents from each country, for a total of 1503 respondents. The survey was administered in English, French, and German. Forrester was responsible for survey fielding and data validation. All respondents were screened to ensure they researched and/or purchased products or services online in the last 12 months.
RichRelevance is the leading provider of dynamic e-commerce personalisation for the world’s largest retailers, including Wal-Mart, Overstock.com and Sears. Founded and led by the e-commerce expert who pioneered personalisation R&D at Amazon.com, RichRelevance helps retailers increase revenues (over $1B in attributable sales since June 2008) by powering relevant experiences throughout the customer lifecycle and across multiple sales channels. The company stands apart for its dedicated team of personalisation experts, integrated product suite, and award-winning personalisation engine, which enables twice as many consumer touchpoints as the industry average. RichRelevance is located in San Francisco, with offices in Seattle and London. For more information, please visit www.richrelevance.com.
Bazaarvoice (www.bazaarvoice.com) is a social commerce technology company. Its Software-as-a-Service (SaaS) solutions have served more than 150 billion pieces of customer-generated content helping over 950 brands globally to harness and amplify customer online word of mouth. In the UK, clients include Argos, Boots, Halfords, Wickes, Thomas Cook, Dell and QVC.
Bazaarvoice's products - Ratings & Reviews, Ask & Answer™ and Stories™ - are social commerce applications that drive sales. They enable customers to review products, ask and answer questions and share stories online; enhancing the online shopping experience and allowing them to make more informed and rewarding purchase decisions. Benefits for the retailer include content ownership, seamless customisation, increased search engine optimisation impact, advanced analytics and syndication across the web. Retailers can also leverage the content generated across on and offline marketing channels.
Founded in 2005, Bazaarvoice has offices in the UK, US, France, Australia and Singapore. The company was named in 2007's Red Herring Global 100 and received the Technology Vendor of the Year award from Retail Systems in 2009.