Adventures in Retail - The Drumimg01.thedrum.com/s3fs-public/drum_basic_article/...The insurance...

The other line’s moving faster

Adventures in

RetailA research report on the changing relationshipbetween consumers and traditional retailers

Introduction

Over the last decade, the world of retail has seen its greatest

transformation in modern times. Gone are the days of customers

only being able to make purchases by physically visiting a shop. Now,

with the proliferation of home computers, smartphones, tablets and

iTV, there are more channels and devices than ever for brands to

interact with consumers. This situation has naturally brought with it an

opportunity to reach larger audiences, but also numerous challenges.

The modern customer now expects more from retailers than just a

positive experience in store. Brands must replicate their values and

services digitally in order to meet these expectations and stave off the

threat from their fellow high street competitors and online specialists.

But, as this study of UK and US consumer habits shows, as digital

continues to become integral to many people’s lives, traditional retailers

are falling behind, creating a substantial shortfall between what is being

provided to customers and what customers actually want.

Adventures in Retail: The other line’s moving fasterBrand Perfect 3

Virtual high streets?

Although the type of service being sought could differ depending

upon context, eg. someone using a tablet might want to browse

high resolution product videos whereas a smartphone user

might want to add something quickly to a grocery list – customers

expect the quality of the service they receive online to match

that which they get in high street stores. But is this happening?

We asked consumers to give their opinions of shopping online

with 10 of the UK and US’s top retailers. Tellingly, only a minority

of respondents rated these brands as their preferred online

retailers. In the UK and US respectively Tesco and Walmart were

reported as providing the best online shopping experience of

those on the list, but they were also chosen as the two brands

offering the worst experience too. Just 17% of UK consumers

asked put Tesco at the top, with Argos and John Lewis coming

in behind them with 15% and 10% of the vote. These brands

may take some comfort from their results, with supporting

comments rating them variously for consistency of message,

design and layout across multiple platforms, but it’s clear from

such a low share of the overall rating that even those at the top

Executive summary of statistics

• 62% of UK and 40% of US consumers don’t rate the top high

street shops online

• Consumers cite slow loading (64%) and difficulty in finding

products (55%) as the top two irritations when shopping online

• 29% of respondents said poor design was a major reason for

aborting an online shopping attempt

• Good or bad, most people share their feelings about their

online shopping experiences with friends and family – 9 out

of 10 UK and US consumers share bad experiences

• Of those who buy using a mobile device, only 3%–4% would

spend more than £500 online, compared to 34% of people in

the UK and 42% in the US who would be willing to do so from

a desktop computer

• The British public trust mobile phones less than their US

counterparts when it comes to shopping – 71% of UK

respondents (almost three quarters) said they wouldn’t use

a smartphone or other mobile phone to purchase goods,

whereas in the US the figure fell to 42%


Over a quarter of consumers also highlighted their positive

experiences with BestBuy (26%) and almost one in five voted

for Target (19%). However, as with Tesco in the UK, Walmart,

perhaps suffering in relation to some of those retailers native

to the web, was also selected by 10% of consumers as providing

worst overall experience online and BestBuy received a high

volume of stinging comments from respondents, including

criticisms of its performance on smartphones and reports of

“poor customer service” and the fact that “often prices are

different between in-store and online”. So although some US

stores appear to be making better progress than their UK

counterparts, there’s still much to be done.

of the list have plenty of work still to do when it comes to

providing the service that their customers truly wish for.

The brands joining Tesco at the top of the list for those rated

the worst have even more to worry about. Among those

consumers saying Debenhams offered the worst experience

were comments such as its desktop site being ”messy” and that

it was “not easy to find items” and other popular brands like

Argos (also featured on the Interbrand chart), Next and IKEA

are still struggling to satisfy some of the more basic online

shopping requirements, such as site performance and web

browser compatibility, clear communication and ensuring all

their products available for online ordering.

Things are a bit better in the US. One in three (37%) shoppers

singled out Walmart as their preferred online store. With its

multi-platform approach and consistent brand messaging, its

offering sets a bar for British retailers to aim for.

Setting the standards

The more complementary and cohesive the experience of the

physical and the digital across devices and touchpoints, the

better the customer experience.

Branding is not just about how your website looks. It’s about the

experience provided to customers who increasingly rate technical

performance and user experience just as highly as aesthetics.

Brands need to build an awareness of this into their plans from

the outset, and outline their own technical standards to their

design and development partners.

The insurance group Aviva plc has set a great precedent here

by publishing its own standards for developers as an open

access document (see the link index at the end of this report).

This document provides an excellent starting point for brands

that do not currently offer standards guidance to the agencies

they work with. Working to a predetermined standard provides

not only a better experience for customers, it also saves money

and development time and can help foster a mutually respectful

relationship with technical partners.

Brand Perfect

Regarding emerging technology standards, which should be

informing the decisions brands are making, the much-discussed

HTML5 standard has the potential to smooth the development

of many web-based projects.

Alan Tam, Director of Product Marketing with Brand Perfect

founders Monotype is a vocal advocate: “HTML5 provides a

consistent and standardised digital medium for brands to

efficiently and effectively reach their audience across a sea of

devices with fragmented platforms and screen resolutions.”

As well as being flexible enough for desktop and mobile web

design and development, and that required for rich media

advertising and web applications, Tam adds that, “In the mobile

space, HTML5 makes a nice starting point, and is complementary

to native development.”

Adventures in Retail: The other line’s moving faster 9


No smarts please, we’re British

As with most sectors, mobile is an important growth area for

retailers today, but for consumers, despite the smartphone’s

infiltration into many of our everyday lives, fears still persist

about buying on them.

In the US shoppers are more trusting, with 58% regularly making

purchases on their phones, compared to just 29% of people in

the UK. This difference in use carries through to tablets too, with

three quarters (75%) of British consumers not willing to use a

tablet for shopping, whereas more than half of people in the US

(53%) are happy to do so. But despite this willingness in the US

to buy from mobile, shoppers are reluctant to do so when it

comes to high-value purchases, and the preferred device for

online shopping on both sides of the Atlantic remains the desktop

PC. When it comes to digital, 33% of UK and 41% of US consumers

said that this was how they liked to shop. Brands have of course

been investing in creating services for the home computer for

far longer than they have for mobile and tablet use, and it’s little

surprise that this more embedded shopping method is the most

favoured. But just what is it that’s holding customers back from

embracing mobile spending?

Online shopping provides consumers with the convenience of

being able to shop wherever and whenever they’re within reach

of a telephone signal, and, if the sellers are doing their jobs

properly, with whomever they wish. There’s little need to re-state

the enormity of the opportunity brought about by affordable

smartphones, tablets and netbooks, and with the launches this

year of Apple’s iPad Mini, Google’s Nexus 7 and Nexus 10,

Amazon’s new Kindle Fire and a range of phones and tablets

from smartphone leader Samsung, this Christmas will see the

market explode to a size barely imaginable a couple of years ago.

The problem for shoppers is not a technological one. They’re

more than comfortable with using their devices to buy music,

rent movies and, yes, to shop, shop, shop. Only they’re not

necessarily doing these things with the high street vendors.

2. Next

Confusing messaging on an emailed

order confirmation from Next,

attempting to clarify its payment

processes. Note this is coupled with a

frustrating ’Do not reply’ instruction.

1. John LewisScreen grab of johnlewis.com taken from a Nexus 7. Retailers with smartphone-optimised sites are missing a trick by serving these by default to users of increasingly popular 7” tablets.

3. ArgosScreen grab of the LEGO® branded section of the Argos site, taken on a 13” MacBook Pro, highlighting some

serious text formatting problems.

Examples

Brand Perfect

1 2

3


4. BootsIn the contest for lengthy menu systems, Boots are right up there with John Lewis. On their mobile site it takes seven pages to get to the eye shadow.

5. WalmartScreen grab of Walmart’s mobile site taken on a Galaxy Nexus. The site was the slowest loading of those we tested, and there was no zoom enabled for the items shown.

Examples

6. BestBuyThis iPhone 5 screen grab shows you can get four menus for the price of one at BestBuy. 4

Brand Perfect

5 6


7. TescoTesco has done a great job of its Tesco direct mobile site. The design is exemplary and the site is intuitive and on the iPhone 5 in Safari, was very quick. (It was a bit slower in Chrome on a Galaxy Nexus.)

8. TescoUnfortunately, when it comes to the desktop, Tesco isn’t quite so up-to-date. The main menu system, an overlay, is confusingly not-quite-alphabetical. Thanks to this, a simple task, such as finding the television section, could take more time than it needs to.

Examples

7

Brand Perfect

8



Gone in the blink of an eye

UK and US consumers shared the same frustrations when

shopping online. Two thirds (67%) of UK and more than half of

US shoppers (51%) cited slow loading times as the top reason

they’d abandon a purchase. Following this were issues with site

navigation and difficulty finding products (50% UK and 41% US),

and too many steps to purchase (40% of UK and 37% of US).

Poor customer service was also reported as problematic by a

quarter of shoppers (UK 26%; US 24%).

Research from Google this year (see link index) has shown that

just 400 milliseconds–literally, the blink of an eye–is too long

for many people to wait for a web page to load. People will visit

a site less often if it is slower than a close competitor by more

than 250 milliseconds.

Retailers must invest more in design support when creating

digital services for their customers, to maintain brand consistency

across online and offline activities, and to have the expertise on

hand to properly consider user experience. It is part of a brand’s

responsibility to ensure they communicate effectively with

Slow browsing - pages or product images are

slow to load

It isn’t easy to use, e.g. I cant find the product I want; I can’t move around the site with ease

Too many steps when I try to purchase goods

Not being able to gauge size

Having to register

Not being able to try on

Not being able to get a feel for quality

Not being able to see true colour

Poor design

There is a lack of customer support

Not being able to touch products

Payment process

Design doesn’t reflect the brand

Other (please specify)

1,568

1,048

780

633

560

525

518

499

465

461

401

386

306

153

86

66.8

49.7

40.4

35.7

33.5

33.0

31.8

29.7

29.4

25.6

24.6

19.5

9.8

5.5

their design and technical partners, and consult with them as

early on during the process as possible to make the best use

of their knowledge.

When shopping online, what are the biggest irritations and/or what would make you abort?

UK respondents by %


Site is easy to browse, e.g. it is easy to navigate

Site is secure

Site would load and function properly

Site is easy to read, e.g. the font is clear

Site is well designed

Site is just as easy to use as the website

Site would link to my account and enable quick shopping

Site looks and feels authentic

Other (please specify)

60.9

58.8

51.5

43.8

42.5

42.2

27.6

26.3

4.6

1,005

612

591

518

440

427

424

277

264

46

Gerry Leonidas, a senior lecturer with the Department of

Typography and Graphic Communication at the University of

Reading agrees that design is of paramount importance when

it comes to online shopping. He says, “Even in well-established

brands that enjoy considerable trust by consumers, an online

experience that is inconsistent, unintuitive, or off-brand will

either turn people off online shopping, or lead to abandoned

browsing and purchasing,”

If you shop online using a cell, tablet or desktop device how could your shopping experience be improved?

US respondents

Nine out of 10 cats

Brands also need to bear in mind that people who don’t have

happy shopping experiences aren’t just walking quietly over to

the competition. A soberingly high volume of customers will

share news of their poor experiences. Not only with friends and

family, but also through social media, voicing their complaints

directly and publicly. When asked the question: “Would you tell

family and friends about a bad online shopping experience?”

90% of respondents said they would.

The good news is that this cuts both ways. Word-of-mouth

recommendations have always had a powerful effect on brand

equity but, when those opinions are online, the influence can be

multiplied. Making mobile shopping social can give customers

a range of opportunities to share with their peers and with

brands themselves. And in the UK, 82% of people said they would

tell family and friends about a good online shopping experience,

with those in the US even more willing to spread the love, with

90% saying the same. Word-of-mouth recommendations are

like advertising nirvana for brands. Almost half of US (43%) and

a third (27%) of UK respondents say they value advice from

family and friends when making their online shopping decisions.

by %


Intelligent, good looking and easy to talk to

That there is an opportunity to appeal to consumers by building

brand consistent, seamless services should give encouragement

to traditional retailers, many of whom have long-established

brand caché on the high street, which can be transferred online

and to a broader market. The trick is to ensure digital is a boon

and not a bane.

UK and US consumers agreed that improving the navigation

and functionality of retail sites would benefit the overall user

experience, making it easier and more pleasurable to shop.

Both visual and service design are crucial. Rob Le Quesne, design

consultant at global digital service design agency Fjord,

comments, “If there is one thing retailers need to do in order to

succeed in these changing times, it is to put people first. It’s no

longer acceptable to consider a brand’s online and in-store

experience as two separate propositions. Retailers need to

better understand the human behaviours associated with

shopping and use technology to amplify the things that humans

can do together.”

The top three requests highlighted by our research are for online

shopping to be made:

• Safer (61%)

• Easier to navigate (57% UK; 59% US)

• Faster (52%)

Any process that asks customers to provide personal financial

information must have robust security, yet stories in the past

year, such as the attacks on Amazon-owned shoe vendor Zappos,

Microsoft India’s online store and Apple’s in-app payment system,

demonstrate that even the world’s tech giants are struggling

against today’s increasingly sophisticated cyber criminals. But

bricks-and-mortar sellers shouldn’t be too quick to say I-told-

you-so. In October, hackers bugged card readers in 63 Barnes

& Noble stores across the US.


I have had people walk out on me before, but not when I was

being so charming

Replicating the offline shopping experience online is tough. 49%

of consumers in the UK and 52% in the US said that not being

able to touch a product before purchase was the main drawback

to shopping online. At the moment, the simplest means of

overcoming this is to offer a reliable, no fuss and free of charge

returns policy, but unfortunately 41% of people in the UK and

47% in the US think this is also missing.

Marketers want insight into consumers’ thinking at the moment

they are making a decision about whether or not to buy. Whenever

someone arrives at this point, they’ll look to various sources of

information to inform their decision. Online brands not only have

the ability to provide direct access to many of these sources at

the point of purchase, they can also track a user’s decision-

making with web analytics, which means there’s little excuse

to continue making the wrong call time and again.

Imagine if you will that you’re looking for a Christmas present

for a loved one. You stumble upon something that could be right,

but just need a little non-partisan encouragement. Most online

stores now include customer reviews, yet few stores are willing

to publicly display a stream of bad reviews, however helpful

these might be in the long-term to buyers. But when it comes

to social media, all voices need to be heard to have any chance

of developing a reputation as an honest brand.

Our research shows 36% of UK and 44% of US consumers will

turn to search engines to research a product. This research

informs their buying choices even more than recommendations

from family and friends, which stand at 26% in the UK and 43%

in the US. At 26%, the third most popular source of shopping

information and inspiration comes in the form of reviews from

trusted publications, outpacing social media darling Facebook,

which still accounts for a not-to-be-sniffed at 16% influence.

Imagine then that as well as the on-site customer reviews you

find accompanying that possible Christmas present purchase,

you’re served up extracts from product reviews in the media,

and mentions from social networks.


By building this kind of thinking into their products, retailers are

going to keep hold of site visitors for longer and have more of

an influence over their eventual decision-making. Fjord’s Rob

Le Quesne agrees. “By embracing the human elements involved

in shopping, brands can offer customers more personalised

content from browsing online through to in-store purchases

and in doing so build more customer loyalty and ultimately,

more profitable relationships.”

The connection a brand forms with its audience is vital to

spearheading growth and development. Thoughtful design and

brand cohesion are essential when looking to transfer a

customer’s shopping confidence from the high street to the

digital world. This means placing investment in both traditional

branding disciplines (colour, layout, typography, logos and tone

of voice, etc.) and user experience design (ease of use, expected

functionality and clear communication) side by side as central

to a retail brand’s digital success.

Checkout

Retailers must address the common problems highlighted

in this study–slow loading, weak site design, poor customer

service and mobile device security–to translate the faith

customers have in their in-store services to their online

experiences.

Important progress in digital has been made by all of the brands

covered by our research, as well as by many others, but in order

to deliver the seamless brand performance customers want,

it’s essential that brand managers, marketers and brand creatives

work together with designers and developers at all stages of

the planning and execution of their digital strategy.


The town mouse and the country mouse

Even once they’ve addressed all of the issues laid out in this

report, with over half of all users saying that speed is a major

problem when attempting to shop online, it’s clear that substantial

investment in service infrastructure from operators is an essential

component of online retail success.

It’s ironic that the shoppers who have access to the best

connections are also those closer to the high street. According

to Ofcom, in the UK, superfast broadband is only available with

any degree of reliability in major cities, and even then some key

regions for the digital industry, such as Brighton in the south-east

and Bristol in the south-west, where users are subsequently

going to be more inclined to use new technology, service isn’t

quite up to scratch.

This year during the Summer Olympics, London Underground

contracted Virgin Media to provide free public Wi-Fi to Tube

users in parts of London, and a similar initiative by Google gave

the same access to passengers using areas of New York’s

subway system. Both programmes were universally welcomed.

Coinciding with this, the UK government outlined plans to have

the best superfast broadband in Europe, with 90% of homes

benefitting from it by 2015, while President Obama ranks the

need for the widespread availability of high connection speeds

so highly that it has been a point of note in his last two State of

the Union addresses, with the US’s Federal Communications

Commission pledging in 2010 that 98% of the US will benefit

from 4G coverage by 2020.

In the UK, where many people in Wales, Cumbria and the west

of Scotland are deprived of broadband speeds much beyond that

you’d expect from old dial-up services, recently rolled-out 4G

coverage looks like it might improve the lot of some customers

even sooner than that. But this is as yet untested technology and

if shoppers are currently not confident in spending from the

desktop, will they be happy doing so from a mobile device, where

the issue of security plays even more on people’s minds?

In the not-too-distant future, when superfast broadband is universally

available in Britain and the US, the brands that heed the advice

outlined in this report will be the ones to gain a competitive edge

and go on to thrive in the ever-expanding world of digital retail.

Research methodology

In August 2012, market research agency Opinion Matters

surveyed 1,568 online shoppers in the UK and 1,005 in the US.

This report has been based upon the results of that survey. On

the following pages you will find a demographic breakdown

of those surveyed, along with the full results of the research.

We selected our two lists of traditional retailers based on

Interbrand’s UK and US lists of the Top 10 Retail Brands of 2012.

Our lists were adjusted to ensure they covered comparable

sectors. In the US we dropped Amazon and eBay (as web-first

retailers), adding in Nordstrom and Publix (ranked 11th and 12th

by Interbrand). We also added in Topshop and removed ASDA

in the UK, to cover as wide a set of demographics as possible.

Potential participants for online responses were identified using

both the Opinion Matters online panel as well as a trusted partner

that adheres to the same strict codes of conduct and research

guidelines. These are actively managed, online global panels

recruited for market research purposes. All panelists have gone

through a double opt in process and have agreed to participate

in online surveys, and to provide honest opinions for market

research studies. A wide range of recruitment processes are

used for the panel including referral, web advertising and public

relations, to partner-recruited panels and alliances with web

portals that experience high volumes of user traffic.

Respondents did not receive an incentive for joining the panel,

but either receive points for each completed survey or are

entered into a prize draw, where for this survey they had the

opportunity to win a prize with a value of £500. Points accrued

can be redeemed for money or go towards charitable donations.

For each survey, panelists are sent an invitation to participate

in the survey (via email); invitations are sent on a random basis

within the target groups for the research.

Brand Perfect

Each invitation reiterates the terms and conditions for the

research, including the potential uses by the researchers of the

information provided, although they are reminded that personal

identity and other personally identifiable details of the respondents

will be protected.

All research conducted by Opinion Matters adheres to MRS

Codes of Conduct (2010) in the UK. Within these parameters

there are guidelines that ensure all research is carried out in a

professional and ethical manner. Furthermore, all members of

ESOMAR and AIMRI Opinion Matters abide by the ICC/ESOMAR

International Code on Market and Social Research.

Opinion Matters is registered with the Information Commissioner’s

Office and is fully compliant in accordance with the Data

Protection Act. The company is also certified under Quality

Assurance Scheme IS0 9001.

41Adventures in Retail: The other line’s moving faster


Not being able to touch products

Not being able to try on

Returning goods easily

Not being able to get a feel for quality

Not being able to see true colour

Being able to browse

Face to face customer service

Finding something I wasn’t expecting

The thrill of finding what I want

In-store brand experience

Shopping with friends

Other

49.0

43.9

40.6

48.6

36.9

31.1

26.2

26.5

12.5

12.2

9.7

1.6

52.0

49.8

46.9

46.7

33.4

29.0

28.8

26.3

16.0

15.6

13.8

1.0

769

689

636

762

579

488

411

416

196

191

152

25

523

500

471

469

336

291

289

264

161

157

139

10

by % by %1,568 1,005

UKrespondents

When shopping online, what things do you miss about the in-storeretail experience?

USrespondents


I do not shop on this device

£1-50

£51-100

£101-£200

£201-£500

£500+

71.3

11.3

7.0

4.8

3.6

2.1

1118

177

109

75

56

33

by %1,568UK respondents

Mobile/Smartphone

How much would you limit yourself to spending when using the following devices:

Tablet – iPad, Galaxy tab, etc. Desktop – PC, Mac, laptop, etc.

75.8

6.4

5.2

4.7

4.0

3.9

1189

100

82

73

63

61

1,568 by %

1.1

33.9

21.0

17.7

14.1

12.2

17

531

329

278

221

192

1,568 by %

I do not shop on this device

$1-50

$51-100

$101-£200

$201-£500

$500+

No set limit

41.9

12.0

17.4

15.9

8.5

4.2

0.1

421

121

175

160

85

42

1

by %1,005US respondents

Cell/Smartphone

How much would you limit yourself to spending when using the following devices:

Tablet – iPad, Galaxy tab, etc. Desktop – PC, Mac, laptop, etc.

47.0

5.3

7.6

10.7

18.1

11.2

0.1

472

53

76

108

182

113

1

1,005 by %

1.4

9.4

14.1

14.1

19.2

41.5

0.3

14

94

142

142

193

417

3

1,005 by %

About Brand Perfect

Brand Perfect is a Monotype initiative that has been conceived to

help brands keep pace with technological change and learn how

to deliver seamless interactive experiences to their audiences.

It is supported by contributions from developers, designers, creative

agencies and brands. It is open to stakeholders involved in creating,

developing and delivering branding in interactive media.

The Brand Perfect Manifesto

• Learn what brands need from agencies and technology, and

convey this to the wider technology industry and standards bodies

• Provide brands with insight through specific industry research

• Reduce the complexity of designing and implementing technology

enabled brand experiences by defining best practice

•Connect organisations with design and development experts to

help them deliver better brand experiences, at lower costs and

that will require less time to get to market

Brand Perfect

Join our community

brandperfect.org is the home of our community of designers, brands

and developers. On the site you’ll find an editorially curated selection

of opinion pieces, brand case studies and interviews by Brand

Perfect advocates, as well the opportunity to get news of and priority

tickets for our events. You are also welcome to become a part of

the community and contribute your own opinion to the discussion.

brandperfect.org | @brandperfect

Link index

• Brand Perfect’s Adventures in Retail report:

http://brandperfect.org/brandperfectreport.pdf

• Aviva web and mobile standards:

http://standards.aviva.com

• Ofcom’s Fixed Broadband Map for the UK (2012):

http://maps.ofcom.org.uk/broadband

• Google user response to load times article:

http://nyti.ms/UVDmsA

• Google page speed general advice:

http://bit.ly/theneedforspeed

• TechCrunch’s Everything You Always Wanted To Know About HTML5

(But Were Afraid To Ask):

http://tcrn.ch/WjB4Pb



Julie Strawson

[email protected]

+44 (0)1737 781624

Neil Ayres / Editor

[email protected]

07775 023 758

Laura Liggins / Designer

Laura Barnard / Illustrator

Adventures in Retail - The Drumimg01.thedrum.com/s3fs-public/drum_basic_article/...The insurance...

Documents

Transcript of Adventures in Retail - The Drumimg01.thedrum.com/s3fs-public/drum_basic_article/...The insurance...