Consumers Go Online To Research Products Before Visiting Shops

An Accenture survey of more than 600 U.S. consumers has found that the majority of consumers use the Internet as part of the shopping process even if they go to stores to purchase or pick up items. The data suggest that retailers and consumer goods companies need to focus on customer service and information available both from call centers and online or risk losing customers researching potential purchases.

While two-thirds (67%) of survey respondents said they prefer to make purchases in physical stores respondents also said they research product features online (69%), compare prices online before shopping in a physical store (68%) or use the Internet to locate items online before going to a store to purchase (58%). Only 13 percent of respondents said the Internet has not improved their in-store shopping experience.

"Instead of replacing bricks and mortar stores, the Internet is an extension of consumers' in-store shopping experience providing a resource to research product and price," said Jeff Smith, global managing director of Accenture's Retail practice. "Retailers and manufacturers must understand this consumer behavior trend in order to reach shoppers, educate them, serve them and earn their loyalty."

Awareness and loyalty

When asked to identify the most powerful influencers of their purchase decisions, the greatest number of respondents - 60 percent - said word-of-mouth, followed by advertising (47%) and online information (43%) are the most influential. The top three ways consumers said they learn about new products are television (64%), word of mouth (47%) and print ads (37%).

Half (50%) of consumers surveyed said they value special promotions to retain their business while 37 percent said they look for improved customer service. Promotions for frequent customers appear to be more effective for women than for men with 54 percent of female respondents saying they value these promotions compared to 47 percent of males surveyed.

"It's critical to understand customers' wants and needs before, during and after the actual purchase," said Keith Barringer, global managing director of Accenture's Consumer Goods & Services practice. "Increasing insight into the customer - and acting on it - can help manufacturers successfully time new product launches and help retailers know when to offer promotions to increase revenue and customer loyalty."

Service and selection

"Consumers are telling us that there is a need for more efficient customer service departments," said Smith. "The phone, and increasingly a company's web site, are the first points of entry. If the on-hold time is too long, if the customer is passed around to different departments or if online navigation is confusing the sale can easily be lost. Customer service can be a powerful - and profitable - differentiator for retailers that know what their customers want and how to deliver it."

Only 50 percent of respondents report getting help always or most of the time for electronics stores and household furnishings with 47 percent saying the same for specialty stores. According to 43 percent of respondents, mass retailers provide help some of the time but 29 percent report the mass stores rarely or never have help available when needed.

The survey also found:

• Products improve efficiency. The majority of respondents (56%) believe they are more efficient today compared to two years ago as a result of new products.
• Cleanliness counts. Store organization is important to 61 percent of respondents and cleanliness was mentioned by 58 percent as key to providing the best in-store experience.
• Location is not shoppers' main concern. Consumers say price and product selection matter more than store location when shopping. The key criteria respondents cited for deciding where to shop are price (85%), and product selection (69%) followed by store proximity (57%).
• Gender differences. More men than women (51 percent vs. 39%) report the Internet has improved the in-store shopping experience by allowing them to order items online for in-store pick-up. More men than women (17 percent vs. 9%) purchase in-store to get better prices while more women than men (16% vs. 8%) purchase in-store to avoid shipping charges.

Survey methodology: The Web-based survey of 602 U.S. consumers age 18 and older was fielded in January 2007."

Posted to the site on 5th April 2007