KNOWING THEM, KNOWING YOU

SHOPPER PERSPECTIVES ON ENGAGEMENT, LOYALTY AND PERSONALISATION IN APPAREL RETAIL

AUGUST 2016

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Chief Executive, Fits Me a Rakuten company

FOREWORD FROM THE CHIEF EXECUTIVE

Stuart Simms

Barely five years ago, it was thought impossible to sell clothing online successfully. How wrong that has proved. In that time, not only have we seen that the overwhelming majority of consumers will buy clothes online, we’ve had time to see substantial changes in their shopping habits, thanks to online shopping advancements, internationalisation, and the effects on disposable incomes of the recent global recession.

One of the most obvious effects has been the rapid evolution of the worldwide web into an enormous, virtual discount warehouse. At the top-end, fashion still prides itself as a means for people to express their individuality through their choices. But, for most people, price has become the primary consideration behind most purchases. This has inevitably resulted in a near-collapse in the traditional notion of brand loyalty in many parts of the apparel sector as consumers shop around while expending no more effort than touching a screen.

While notionally good for consumers in the immediate term, the long-term effects of addiction to price are likely to be unwelcome: a ‘race to the bottom’ favours neither business sustainability nor product quality – both of which will surely come back to haunt consumers just as they haunt retailers and brands.

Naturally, retailers and brands have responded: new themes and strategies have emerged as they try to combat their shoppers’ addiction to price – customer engagement, customer experience, loyalty programmes and personalisation to name a few. All are aimed at increasing customer loyalty in order to grow (or even, perhaps, to restore the idea of) customer lifetime value.

As a business that enables apparel retailers and brands to understand their customers through each individual’s unique combination of measurements and fit preferences, Fits Me has fingers in each and every one of these pies. We think we understand the relationship between them pretty well and, maybe, you do too. But customer-centricity applies to us all: what we think doesn’t matter, it’s what the shopper thinks that matters. We commissioned this survey, the key results of which are summarised below, the better to know what your customers understand and expect of these themes and the relationship between them – all through their eyes.

Have we asked every question, answered every question? No. But I hope you’ll find nuggets of gold here, some quantification or knowledge you didn’t have before, that will help you to formulate your 2016 strategy for building a sustainable, profitable, customer-centric business model that can succeed in the current, long-term, shopping reality.

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Retail Week’s July 2014 report Fashion Retail: selling fashion in a digital age suggested that 60% of consumers want retailers to present fashion that is relevant to them. This survey shows a significant increase, to 78%.

The same Retail Week report suggested that 69% of consumers find it annoying to have to search through lots of clothes to find the right thing. This survey indicates that 46% of shoppers always or often find it annoying, with a further 35% responding ‘sometimes’.

The June 2013 Cisco® Customer Experience Report documented that 58% of consumers polled were willing to share their personal measurements and sizes with their retailer in exchange for more personalized recommendations on future purchases. This survey indicates a comparable figure of 57%.

Overall, 92% of respondents in this survey confirmed that they shop online for clothes – exactly the same as in our survey of February 2014, How fit is online fashion?

COMPARISONS WITH PREVIOUS SURVEYS

SEVERAL QUESTIONS IN OUR SURVEY ARE DIRECTLY COMPARABLE WITH SIMILAR SURVEYS CONDUCTED BY OTHER ORGANISATIONS, ENABLING BROAD CONCLUSIONS OVER TRENDS.

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SEARCH AND DISCOVERY

Do you find it annoying or irritating to have to search through a lot of clothes to find the items you want?

ALWAYS OFTEN SOMETIMES OCCASIONALLY NEVER

Total - 2005 Male - 940 Female - 1065

14%

32%

35%

14%

4%

11%

32%34%

15%

7%

16%

32%

36%

13%

2%

Six percent of respondents stated that they ‘always’ find it difficult to find what they’re looking for, with an additional 24% replying ‘often’ – together comprising three in ten shoppers. A further five-in-ten

More significantly, experiencing such difficulty generates strongly negative emotions. Asked whether they found it annoying or irritating to have to search through a lot of clothes to find the items they want, 14% of respondents replied

WITH SO MANY ITEMS AVAILABLE ONLINE, THERE IS CLEARLY A RISK THAT SHOPPERS WILL FIND IT HARD TO FIND THE GARMENT FOR WHICH THEY ARE LOOKING. HOW PREVALENT IS THE ISSUE?

responded ‘sometimes’, making a total of over 80% of shoppers stating ‘sometimes’ or worse – not the endorsement of the shopping experience that retailers would like. For women this total rises to 86%.

‘always’, and 32% replied ‘often’ – suggesting retailers routinely inconvenience nearly half their shoppers, despite the emergence of effective search/filter functionality. Up to age 34, more than half of respondents claim they are ‘always’ or ‘often’ annoyed or irritated.

6%

24%

52%

15%

3%5%

21%

50%

18%

5%6%

26%

54%

12%

2%

ALWAYS OFTEN SOMETIMES OCCASIONALLY NEVER

Total - 2005 Male - 940 Female - 1065

When shopping for clothes, is it difficult to find what you are looking for?

Male - 940Total - 2005 Female - 1065

Male - 940Total - 2005 Female - 1065

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With 88% of respondents having been annoyed at some point by the lack of sizing consistency across retailers, there is strong support for the use of fit to filter the choice available to customers. When asked whether

FIT-BASED CURATION FINDS FAVOUR

If a clothing retailer or brand showed you only items that it knew would fit you the way you like, would that help you to choose?

78% 79% 78%

4% 5% 3%

18% 16%19%

TOTAL - 2005 MALE - 940 FEMALE - 1065

Yes No Unsure

78% 79% 78%

4% 5% 3%

18% 16%19%

TOTAL - 2005 MALE - 940 FEMALE - 1065

Yes No Unsure

being shown only items that the retailer knew would fit them would help them to choose, almost four-in-five respondents replied ‘yes’, with only 4% replying negatively.

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LOYALTYSHOPPER LOYALTY HAS BECOME A MAJOR ISSUE FOR APPAREL RETAILERS AND BRANDS. BUT DO SHOPPERS CONSIDER THEMSELVES LOYAL – AND WHAT DO THEY MEAN BY THAT?

Which of the following statements most closely describes your clothes shopping habits?

For all the evidence of declining customer loyalty, 56% of all respondents consider themselves to be loyal to a handful or fewer of apparel retailers or brands which meet all their clothing requirements.

There is nonetheless a substantial minority (40%) of respondents which is explicitly not loyal, happy to shop either in many places (30%) or anywhere with the right clothes (10%).

Older shoppers become less likely to be loyal to a small handful of retailers. This cannot be explained by, for example, an increasing preference to shop from local stores; genuine brand-indifference appears responsible, meaning older age groups will shop wherever they find the clothes they like.

However, the survey also contains evidence of muddled consumer perceptions of loyalty.

AGE

2005 940 106518-24

18325-34

37535-44

38345-54

40255-64

37965+283

I always buy from a handful of favourite retailers / brands that, together, meet all my clothing requirements.

50% 47% 52% 62% 50% 49% 51% 46% 46%

I buy clothes from lots of different retailers/brands. 30% 31% 30% 24% 33% 34% 32% 29% 26%

I shop with any brand/retailer that has clothes I like. 10% 10% 11% 7% 6% 8% 11% 14% 16%

I always buy from one favourite retailer / brand that meets all my clothing requirements

6% 8% 5% 5% 10% 7% 4% 6% 6%

I try to buy from local stores. 2% 2% 1% 2% 1% 1% 1% 2% 4%

I try to buy from UK retailers / brands. 2% 2% 1% 1% 1% 1% 1% 2% 3%

TOTAL

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71% of respondents replied that they were loyal to either one, two or three, meaning that only 29% of responses were loyal to four or above (including, ultimately, 16% loyal to no retailer) – inconsistent with the significant 40% minority mentioned above. The fall-off above three retailers is pronounced.This particular inconsistency is positive for

retailers: in the purposely ‘general’ previous question, 40% of respondents gave a response suggesting a lack of loyalty, while in this more specific question only 30% of respondents gave a similarly indicative response. Even allowing the inconsistency, consumers seem to consider themselves more loyal than retailers believe.

On the basis of your answer to the previous question, to how many clothing retailers or brands would you say you were “loyal”?

2005 940 1065

0 16% 19% 13%

1 10% 11% 9%

2 29% 31% 28%

3 32% 29% 34%

4 3% 2% 5%

5 6% 5% 7%

6 2% 2% 3%

7 1% 1% 1%

8 0% 0% 0%

9 0% – 0%

10 0% 0% 1%

TOTAL

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21.7%

12.0%

9.6%

5.9%

5.1%

4.7%

3.9%

3.7%

2.9%

2.7%

2.3%

2.0%

1.9%

1.9%

1.6%

1.4%

1.3%

1.3%

1.3%

1.1%

1.0%

0.9%

0.9%

0.9%

0.8%

0.8%

0.7%

0.7%

0.7%

0.7%

0.7%

0.6%

0.6%

0.6%

0.5%

0.5%

OTHER

M&S

NEXT

PRIMARK

DEBENHAMS

NEW LOOK

H&M

ASDA (GEORGE)

TESCO (F&F)

MATALAN

ASOS

AMAZON

BHS

DOROTHY PERKINS

RIVER ISLAND

ZARA

TOPMAN

JOHN LEWIS

SAINSBURY'S (TU)

TOPSHOP

BURTON

BONMARCHÉ

COTTON TRADERS

ADIDAS

TK MAXX

NIKE

GAP

EBAY

EVANS

PEACOCKS

FAT FACE

LEVI'S

SPORTS DIRECT

WHITE STUFF

JD WILLIAMS

WALLIS

WHO’S GETTING THE LOYALTY?A LARGE MAJORITY OF SHOPPERS SAY THEY ARE LOYAL, BUT TO WHICH RETAILERS ARE THEY ACCORDING THAT LOYALTY?

84% of the 2005 respondents – all 1,686 of those who, in the preceding question, said they were loyal to one or more apparel retailers or brands – were asked to name those to which they would describe themselves as most loyal. Respondents who said they were loyal to one, two, or three apparel retailers or brands were invited to name those one, two or three respectively; respondents who said they

were loyal to four or more retailers or brands were capped at three names. This resulted in 3,340 meaningful brand/retailer mentions, the distribution of the top 35 of which are shown in the chart below.

While there is no benchmark to indicate whether the absolute numbers are positive or negative for the retailers and brands shown, there are relative comparisons to make, for example between similar genres of retailer/brand. There may also be high street ‘names’ that might have expected to be the top 35 of the ‘Loyalty Index’ by this measure, but which are not.

Percentage of mentions

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HOW WIDE IS THE GAP BETWEEN RESPONDENTS’ LOYALTY PERCEPTION AND THEIR ACTIONS? HOW EASILY ARE LOYAL INTENTIONS SET ASIDE?

From the following list of reasons, select the statement you agree with most.

To clarify their reasons for the number they gave to the preceding question, we asked respondents to select from a list of statements that could explain their

previous response. The statements fall broadly into two categories: short term ‘self-interest’ triggers and longer term ‘loyalty’ drivers.

AGE

200518-24

18325-34

37535-44

38345-54

40255-64

37965+283

I like to shop around for the best price 29% 29% 33% 30% 29% 28% 26%

I shop for clothes I like without thinking about the brand or retailer 20% 21% 16% 17% 17% 23% 24%

Online shopping means it’s easier to shop around than to be loyal 16% 14% 19% 13% 17% 15% 13%

I am always a loyal customer of my favourite retailers 14% 10% 12% 13% 13% 17% 18%

Retailers make little attempt to turn me into a loyal customer 6% 6% 5% 7% 7% 7% 4%

Retailers don’t do enough to deserve my loyalty 5% 5% 6% 6% 6% 3% 3%

Retailers don’t try to get to know me or understand my needs 4% 5% 3% 5% 4% 4% 4%

Retailers do a good job of turning me into a loyal customer 4% 8% 5% 5% 3% 2% 4%

I prefer to support local shops 3% 2% 2% 2% 4% 1% 5%

TOTAL

(DIS)LOYALTY DRIVERS

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INCREASING LOYALTYIF LOYALTY IS AN ISSUE FOR RETAILERS AND BRANDS, THEN WHAT DO CUSTOMERS EXPECT IN RETURN FOR GIVING IT? HOW SOPHISTICATED DO BUSINESSES NEED TO GET?

No sooner is price introduced than it tops the list of drivers – although whether this is a driver of loyalty or disloyalty is a question that would stand further exploration: retailers of value clothing (such as supermarkets) scored well when respondents were asked to name the retailers and brands to which they were most loyal.

The first, true long-term loyalty-related statement comes in a lowly fourth, suggesting that retailers working to earn their customers’ loyalties does not automatically register as a priority for them.

Also of interest: the age-group results for the answer ‘I shop without thinking about the brand or retailer’. It’s possible that, in the youngest group, getting ‘the look’ is more important than the label; in the 25-34 age-group, personal identity may have solidified (at the same time as factors such as children increase price-sensitivity), before brand loyalty seeps away with age, as responses to previous questions also indicate.

Asked for a second-preference answer, the response pattern is repeated with price still the biggest single response by a distance.

From the following list, choose the factor which would be most likely to increase your loyalty to a clothing retailer or brand.

2005 940 1065

It stocks clothes that fit my needs and preferences 29% 23% 35%

It has consistently better quality products for the price than others 21% 26% 17%

It is consistently cheaper than others 18% 20% 16%

Items I like are rarely ‘out of stock’ in the size I want 11% 9% 12%

There is a high street store that’s local to me 7% 8% 6%

It makes me feel individual, not the same as everyone else 6% 5% 7%

It knows what I like and remembers me when I visit their website or walk through the door 4% 4% 3%

It learns about me and sends information about the products in which I am most interested 3% 4% 3%

TOTAL

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TOTAL - 2005 MALE - 940 FEMALE - 1065

Yes No Unsure

34% 34% 34%29%

34%

23%

38%32%

43%

GETTING PERSONAL WITH MARKETING

HOW DO SHOPPERS VIEW PERSONALISED MARKETING COMMUNICATIONS? DO PEOPLE WANT THE ONE-TO-ONE CONVERSATION, OR JUST TO HEAR THE SAME SHOUT-OUT AS EVERYONE ELSE?

In view of the dominance of price in responses to preceding questions, it would be reasonable to expect ‘price’ to be at the top of the list. It isn’t – evidence that even the lowest price in the world can never inspire loyalty as there will, after all, always be somewhere cheaper, however temporarily.

Price is, however, the third-most popular response (and is also a major factor in the second-most popular response, value). As seen above, short-term ‘self-interest’ factors hugely outscore any concept that retailers could be doing more or better for customers, including ‘obvious’ personalisation.

Nonetheless, the most popular response suggests that, most of all, retailers simply need to avoid disappointing their customers

The number that stands out below is the huge proportion of “don’t know” responses, along with the remarkably even split between “yes” and “no”. The disparity between the welcome for personalised marketing communications – the “yes” responses at

It is not the only set of responses in this survey to demonstrate that shoppers are, as yet, unaware that this degree of personalisation is achievable. The disparity may also be explained by consumers

34% – and the 78% of respondents who, right at the top of the survey, said they would find it easier to choose if a retailer only showed them clothes it knew would fit. It is also pronounced as unexpected, since they might have inferred that this is what is on offer.

feeling torn between the benefits of such communication and general resentment at being the recipient of frequently unwanted marketing communications – which may also account for the level of “unsure” responses.

by selling clothes that fit customer needs and preferences, and ensuring they are stocked in volumes and sizes to meet demand.

Since every retailer aims to do this already, the collective message from consumers appears to be a plea for retailers to know their customers in far greater detail than do most retailers currently – in effect, to apply macro-insight gained from micro-personalisation.

Asked for a second-preference answer, the pattern of answers was repeated. Asked to consider the same list in the inverse way – ‘which factors would be least likely to increase loyalty?’ – respondents remained consistent.

If a retailer or a brand sent you a newsletter, email or catalogue showcasing garments specific to your preferences, would that increase your likelihood of buying from them?

Yes No Unsure

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PERSONAL DATA

CONSUMERS ARE GENERALLY PERCEIVED TO BE INCREASINGLY AWARE OF THE VALUE OF THEIR DATA, AS WELL AS THE ISSUES AROUND ITS GIVING, RECEIPT, COLLECTION AND STORAGE. WHAT ARE THEY PREPARED TO SHARE?

This survey is specific to apparel shopping, so it is unsurprising to see personal measurements ranking highly in the responses to this question. The answers

Which of the following are you happy to share with a retailer while shopping? Tick all that apply.

with the highest ranking all make sense for a customer to consider sharing when buying clothes, while sensitive-but-not-relevant-to-clothes information such as marital status rank lower.

2005 940 1065

Email address 57% 54% 60%

Personal measurements, e.g., chest, waist, bust, hips, neck, inside leg, weight 45% 49% 41%

Age 43% 43% 43%

Style preferences 41% 34% 48%

Name / address 34% 33% 35%

Colour / print / fabric tastes 34% 25% 41%

Purchase history 30% 30% 30%

Brand preferences 28% 27% 29%

Date of birth 25% 24% 26%

Wish lists 24% 19% 27%

Marital status 23% 23% 22%

TOTAL

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However it is surprising to see continued disparity between respondents’ desire for a curated experience based on what the retailer knows will fit them (78%), and their willingness to share the basic information necessary for that to be possible (45%). Shoppers may not be making the connection between the experience they want and the data that requires, or it may indicate that retailers have work to do to gain consumer trust.

Nonetheless this survey’s number is some way higher than other recent figures for the same question, such as Drapers’ September 2015 Multichannel report (17%). With this survey taking the respondent through a particular thought process,

WE RETURN TO PERSONAL DATA AGAIN LATER, AFTER SUGGESTING TO SHOPPERS THAT THEIR EXPERIENCE COULD BE IMPROVED IF THEY SHARE ADDITIONAL INFORMATION.

our higher figure highlights both how straightforward and how beneficial it is to educate the customers on the link between the quality of the experience and data.

The total figure masks interesting variations across age-groups. The 18-24 age-group are arch-sharers, ranking top in 13 of the 19 data categories. At 60%, this youthful group is more than twice as likely to share their name and address than the 65+ age-group (28%). This older age-group is also far less willing to share even colour/print/fabric tastes: just 17% compared with 45% of 18-24 year olds.

Overall, 15% of respondents are unwilling to share any data with retailers. Among 18-24 year olds this figure is just 4%.

2005 940 1065

Mobile phone number 14% 17% 13%

Family size / composition 12% 13% 12%

Home phone number 11% 14% 8%

Store my credit card details 7% 8% 6%

Permission to perform a credit check 6% 9% 5%

Social media details 6% 7% 5%

Bank details 5% 7% 4%

Income 4% 5% 3%

None of the above 15% 17% 14%

TOTAL

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IMPROVING THE EXPERIENCE

WHAT WOULD SHOPPERS MOST LIKE TO SEE THAT IMPROVES THEIR SHOPPING EXPERIENCE, IN RETURN FOR SHARING MORE INFORMATION ABOUT THEMSELVES?

An aggregate of 38% indicate an appreciation of how personalisation of their experience could improve it, specifically in the form of curation of the garments shown to them or suggestions of alternatives – search and discovery again.

The single most popular response, however, is still price-related – 41% of respondents would most like to see individualised offers and discounts; responses to earlier questions suggest that the “specific to me” element of the answer carried less weight than “offers and discounts”.

Thinking about the experience of buying clothes, select from the following list the thing that you would most like to see in return for sharing information about yourself?

2005 940 1065

Offers and discounts specific to me 41% 42% 40%

Show me only clothes that I like and that will fit me. 19% 19% 19%

Automatically tell me whether the size that fits me correctly is ‘in stock’ 12% 14% 11%

Show me all garments but tell me if any given item will fit me, based on my personal preferences 7% 5% 8%

Suggestions of new products that I might like based on my personal preferences 6% 5% 7%

VIP access to clothes pre-launch / sale 6% 4% 7%

Suggestions of alternative, similar items if an item I want is not available 6% 6% 5%

Individualised marketing, such as emails and catalogues that are based on my style and fit preferences

4% 4% 3%

TOTAL

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The popularity of price seems diminished as a second preference. 40% of respondents did not identify it as either the first or second choice, suggesting a fairly

broad understanding that the sharing of data should positively impact the brand experience, not just pricing.

PERSONAL DATA – REVISITEDWHAT EXTRA WILL SHOPPERS SHARE IN RETURN FOR AN IMPROVED SHOPPING EXPERIENCE? DID THE PROSPECT OF PERSONALISATION OPEN RESPONDENTS’ EYES TO THE POSSIBILITIES?

Thinking about the experience of buying clothes, select from the following list the thing that you would second most like to see in return for sharing information about yourself?

2005 940 1065

Show me only clothes that I like and that will fit me 19% 22% 17%

Offers and discounts specific to me 17% 16% 17%

Automatically tell me whether the size that fits me correctly is ‘in stock’ 16% 17% 16%

Suggestions of alternative, similar items if an item I want is not available 11% 10% 12%

Suggestions of new products that I might like based on my personal preferences 10% 10% 11%

Show me all garments but tell me if any given item will fit me, based on my personal preferences 10% 9% 10%

VIP access to clothes pre-launch / sale 10% 8% 11%

Individualised marketing, such as emails and catalogues that are based on my style and fit preferences

7% 9% 6%

TOTAL

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Which additional information would you be happy to share with a retailer in return for an individual, personalised shopping experience? Tick all that apply.

AGE

169818-24

18325-34

37535-44

38345-54

40255-64

37965+283

Style preferences 17% 29% 33% 30% 29% 28% 26%

Purchase history 20% 21% 16% 17% 17% 23% 24%

Colour / print / fabric tastes 16% 14% 19% 13% 17% 15% 13%

Brand preferences 14% 10% 12% 13% 13% 17% 18%

Wish lists 6% 6% 5% 7% 7% 7% 4%

Personal measurements, e.g., chest, waist, bust, hips, neck, inside leg, weight 5% 5% 6% 6% 6% 3% 3%

Date of birth 4% 5% 3% 5% 4% 4% 4%

Age 4% 8% 5% 5% 3% 2% 4%

Name / address 3% 2% 2% 2% 4% 1% 5%

Mobile phone number 20% 21% 16% 17% 17% 23% 24%

Email address 16% 14% 19% 13% 17% 15% 13%

Family size / composition 20% 21% 16% 17% 17% 23% 24%

Marital status 16% 14% 19% 13% 17% 15% 13%

Home phone number 20% 21% 16% 17% 17% 23% 24%

Social media details 16% 14% 19% 13% 17% 15% 13%

TOTAL

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More than 71% of shoppers are prepared to share more in return for the explicit offer of an individual, personalised shopping experience (highest in younger age groups, decreasing with age). Perhaps through the ‘education’ inherent in the survey, they have immediately identified valuable benefits from sharing additional information over and above their initial, instinctive response.

To fully understand what shoppers will share, it’s necessary to aggregate the responses to this question with the earlier question about

In view of the publicity received by any form of public data breach, it would be unsurprising to learn that data security is the primary motivation for consumers to dislike sharing their data. And the second-to-fifth most frequently cited reasons below are all privacy-related, rather than relevance-related. Why not the top-rated response? It’s possible that the selection of one privacy-related reason over the other three may have been a marginal decision for many respondents, for reasons that

DATA RELEVANCE

would need to be explored in more detail.

Nonetheless, security is far from the only concern: as these responses show, irrelevance or unclear relevance certainly sets off alarm bells and it is the single largest response. One in six respondents agrees it is “creepy” for retailers to want to know that much about them – not an emotion with which a retailer would want to be associated.

what they are happy to share. The aggregate for “style preferences” rises to a total of 58%, “personal measurements” rises from 45% to 57%, and “purchase history” rises to 45%.

These totals still raise questions in view of respondents’ answers to questions at the top of the survey. The early 78% response rate for “show me only clothes it knows will fit me” may reflect a desire for a utopian shopping experience, while the need to share information to achieve that experience yields a more conservative response.

AGE

169818-24

18325-34

37535-44

38345-54

40255-64

37965+283

Income 17% 29% 33% 30% 29% 28% 26%

Store my credit card details 20% 21% 16% 17% 17% 23% 24%

Permission to perform a credit check 16% 14% 19% 13% 17% 15% 13%

Bank details 14% 10% 12% 13% 13% 17% 18%

I don’t want to share any more information 6% 6% 5% 7% 7% 7% 4%

TOTAL

WHEN CONSUMERS DON’T WANT TO SHARE DATA, WHAT ARE THEIR REASONS FOR NOT DOING SO? IS IT SIMPLY A SECURITY ISSUE?

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The super-sharers - the 18-24 group - are more likely than any other group to suspect that information may not contribute to an improved, personalised shopping experience; in fact, this age group’s combined response to the ‘creepy’ or ‘not relevant’ options make it by a distance the most suspicious group.The small proportion of that age group (5%) that worries about data being shared

with third parties – which might have been thought likely to attract a significant response – looks like a potential anomaly. It may be a casualty of respondents’ selection of the ‘creepy’ or ‘not relevant’ options. However, there is evidence of increasing fear as people get older.

Thinking about the personal information you’re unwilling to share: from the following list, which reason most closely explains why?

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AGE

169818-24

18325-34

37535-44

38345-54

40255-64

37965+283

I don’t see how knowing it is relevant to my clothes shopping experience 28% 31% 25% 23% 29% 29% 32%

A retailer might pass that information to third parties 16% 5% 10% 13% 20% 22% 24%

It’s creepy for a business to want to know that much about me 15% 24% 19% 18% 12% 13% 10%

It’s creepy for a business to want to know that much about me 15% 12% 11% 14% 16% 19% 19%

It’s too private, even if it might help provide a better experience 12% 18% 15% 16% 10% 7% 7%

A retailer might use the information to increase their prices for me 5% 8% 11% 6% 3% 2% 2%

A retailer might use that information to market / advertise to me more 5% 1% 5% 4% 5% 7% 4%

None of the above 4% 2% 5% 5% 5% 2% 2%

TOTAL

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Respondents were asked to think of their favourite retailer and rate that favourite for how well it does at giving the respondent a personalised customer experience.

On the basis that most brands and retailers, if they have embarked on personalisation strategies, would agree that they are generally still scratching the surface of what is now possible, the 47% of respondents that answered either Strong or Good is surprisingly high. It may relate simply to the fact that shopping online with any retailer usually entails the creation of a profile, whether or not the outcome from doing

WHO’S DOING IT RIGHT?

TO ENSURE RESPONDENTS CONTINUED TO GIVE DUE THOUGHT TO THEIR RESPONSES, WE ASKED THEM TO THINK ABOUT REAL APPAREL RETAILERS AND BRANDS WHILE ANSWERING, AND TO IDENTIFY THEIR FAVOURITE RETAILER.

so is, actually, a personalised experience. Considered in conjunction with other answers, it’s possible to conclude that shoppers are impressed by anything that resembles personalisation, suggesting that retailers and brands that take the plunge will see rapid changes in customer perception.

With increasing age there is an interesting decline in the proportion of respondents

AT THIS POINT WE ASKED RESPONDENTS TO IDENTIFY THEIR FAVOURITE APPAREL BRAND OR RETAILER.

Thinking about your answers so far: how good is your favourite clothing retailer/ brand at giving you an individualised, personal experience?

AGE

200518-24

18325-34

37535-44

38345-54

40255-64

37965+283

Strong 5% 10% 7% 6% 3% 2% 2%

Good 42% 39% 48% 45% 42% 39% 34%

Weak 23% 27% 22% 25% 21% 24% 18%

Very poor 7% 9% 5% 5% 7% 9% 11%

Unsure 23% 14% 18% 20% 27% 25% 35%

TOTAL

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Favourite retailer : Proportion of mentions

The question drew a meaningful response from 1786 of the 2005 respondents, a rate of 89%. This is 5% higher than the number of respondents who agreed they were loyal, implying that it is perfectly possible to have a favourite retailer without feeling any loyalty towards it, a situation that applies to a minimum of 5% of shoppers.There is considerable consistency between the ‘Top 10’ of this ‘Favourite Index’ and the

same section of the earlier Loyalty Index. Elsewhere there are retailers and brands that, by this measure, are in the top 35 of the Favourite Index but which are not in the Top 35 of the earlier Loyalty Index, and vice versa.

In both indices, the two top-ranked retailers achieved responses significantly ahead of even the third-ranked retailer.

21.8%

13.7%

11.8%

5.7%

5.2%

4.4%

3.5%

3.5%

2.8%

2.6%

2.4%

1.8%

1.5%

1.4%

1.2%

1.2%

1.1%

1.1%

1.0%

1.0%

1.0%

0.9%

0.8%

0.8%

0.8%

0.7%

0.7%

0.7%

0.7%

0.7%

0.7%

0.6%

0.6%

0.6%

0.6%

0.6%

OTHERM&S

NEXTPRIMARK

NEW LOOKDEBENHAMS

H&MASDA (GEORGE)

ASOSMATALANAMAZON

ZARATESCO (F&F)

TOPSHOPDOROTHY PERKINS

JOHN LEWISCOTTON TRADERS

RIVER ISLANDTOPMAN

EBAYSAINSBURY'S (TU)

NIKETK MAXX

BHSBONMARCHÉ

BURTONEVANS

ADIDASGAP

LEVI'SSPORTS DIRECT

BODENFAT FACE

JD WILLIAMSSUPERDRY

HOUSE OF FRASER

For clarity: respondents were asked to answer the preceding question in the context of thinking about their favourite retailer; this chart shows the distribution of answers when respondents were asked immediately afterwards to identify the retailer they had in mind when answering that question.

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PERSONALISATION: HOW TO GET IT WRONGSURVEY RESPONDENTS ARE THINKING ABOUT PERSONALISATION AND THE DATA NEEDED, NOW, UNLIKE WHEN THEY BEGAN THE SURVEY. WHAT ARE THE OBVIOUS PITFALLS FOR RETAILERS?

There is no overwhelmingly popular response to this question, but it’s notable that the top three responses relate to data privacy concerns rather than the prospect of an unwanted individualised experience. Together these three comprise 56% of all responses, so these concerns cannot easily be dismissed.

The 16% of respondents that cited concern about seeing a computer-generated image of themselves may reflect suspicions over the potential of webcams to be activated

unexpectedly, something which has been the subject of privacy scares in the past. Fewer than one in sixteen respondents indicate that the prospect of individualised shopping experiences is “creepy”. The survey explores their actual reaction to well-/poorly-executed personalisation in more detail in a later section.

The messages for retailers and brands from the ‘data’ section of the survey are obvious: be clear, be transparent and be honest.

Which of the following would you find most creepy about a personalised (individualised)

shopping experience?

2005 940 1065

If I couldn’t understand from where the information had been acquired 22% 21% 23%

If I thought the retailer has no right to know that information about me. 17% 18% 16%

If a retailer I had never bought from sent me something personalised 17% 16% 17%

If I saw a computer-generated picture of myself in an outfit 16% 13% 18%

If the personalised experience or recommendations were so wrong it was irrelevant to me 9% 10% 8%

None of the above 7% 8% 7%

I can’t imagine finding it creepy 6% 7% 6%

If I couldn’t understand why I was getting that experience 5% 6% 4%

TOTAL

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PERSONALISATION: IS THERE RISK?

YOU’VE COLLECTED THE DATA CORRECTLY, COMMUNICATED WITH YOUR SHOPPERS, AND START PERSONALISING. WHAT ARE THE REMAINING RISKS IN TERMS OF CUSTOMER RESPONSE?

Get it right and the overwhelming majority of shoppers are pleased to get a personalised experience based on their fit preferences, measurements and purchase history: only one in six is not happy. Of course, in the real world, this is handled simply via an opt-in/opt-out mechanism; meanwhile 85% of shoppers are happy to enjoy or accept a better shopping experience.

The younger the age-group, the happier they are to get the personalised experience. Are older shoppers really less happy to get a personalised experience? The research cannot really tell us; some of the indifference or negativity may be attributable to a lack of understanding of what is possible, the previously examined unwillingness to share data, or even just to resistance to change.

Scenario: a favourite clothing retailer or brand alerts you to some items that it thinks would be perfect for you based on your fit preferences, measurements and previous purchase history.

Which of the following phrases best describes how you feel?

AGE

200518-24

18325-34

37535-44

38345-54

40255-64

37965+283

Happy about that / I welcome it 14% 19% 23% 17% 11% 8% 6%

OK with that / pleased 41% 51% 44% 46% 46% 34% 28%

Unbothered either way / indifferent 30% 21% 23% 26% 30% 36% 43%

Not OK with that / displeased 6% 5% 4% 5% 4% 7% 9%

Unhappy about that / I feel intruded upon 9% 3% 6% 5% 8% 15% 14%

TOTAL

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This question provided some of the most polarised results of the survey. At first sight the message seems to be: Don’t mess up, poorly executed personalisation can alienate 61% of shoppers, while 39% are unbothered or better.

But this average is misleading: the figures for “disappointed” and “unhappy” are skewed upwards by a precision-demanding 73% of the 55+ age group and 74% of the 55-64 age group, while less than half of the

18-24 age group is bothered by it. Again, in the real world, risk is easily mitigated through an opt-in/opt-out mechanism.

These are, nonetheless, indications that personalisation needs to be “done right”.While acknowledging that the degree of disappointment will be relative to the effort that went into providing the data, and which data were provided, delivering incorrect (for example) recommendations means the customer is deprived of the correct recommendations.

In the same scenario, you feel the suggestions made for you are generally wrong.Which of the following best describes how you feel?

AGE

200518-24

18325-34

37535-44

38345-54

40255-64

37965+283

Happy about that / I like receiving information on products anyway 4% 3% 10% 5% 2% 1% 1%

OK with that / pleased 8% 7% 12% 13% 7% 4% 2%

Unbothered either way / indifferent /no hard feelings 27% 42% 27% 31% 25% 21% 24%

Not ok with that / disappointed that the technology seems not to have worked. 33% 30% 34% 31% 37% 34% 32%

Unhappy about that/I appear to have shared my data for no good reason. 28% 18% 16% 21% 28% 40% 41%

TOTAL

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SUMMARY

WE SET OUT TO DETERMINE SHOPPERS’ BROAD ATTITUDES TOWARD CUSTOMER EXPERIENCE, PERSONALISATION AND LOYALTY. WHAT DID WE FIND?

SEARCH AND DISCOVERY Comparison of responses to this survey with surveys conducted by other organisations suggests the issues around finding the clothes have not receded but have, in fact, grown. The widespread introduction of better search functionality such as filters has not improved the situation for clothes shoppers. The research suggests that curation based on an individual’s fit profile will be highly popular with shoppers and improve their experience.

LOYALTY There may be differences in the perceptions of loyalty of retailers and shoppers. Received wisdom from apparel retailers is that loyalty is a major issue, while the perception of a majority of shoppers is that they are loyal: 56% of respondents said they are loyal to a handful of (or fewer) apparel retailers or brands that meet all their clothing requirements.

Nonetheless, emphasising the challenge facing retailers in this respect, only one in seven respondents claimed always to be a loyal customer of their favourite retailers. Two-thirds of respondents admit to either shopping around for the best price ( 29%), shopping around because online makes it easy to do so ( 20%), or shopping without thinking about specific brands or retailers ( 16%).

And yet six out of ten respondents say they are loyal to either two or three retailers, raising the question: what is the optimum number of retailers to which a shopper can, or should, be loyal?

Offering encouragement for retailers, when respondents were asked to consider what would make them more loyal, the single best-scoring response related to stocking clothes that fit each customer’s needs and preferences. Since all retailers try to achieve this already, this response suggests retailers still need to do it significantly better, equating to retailers knowing their customers better than they currently do and putting that knowledge to work across their organisation.

PERSONALISATION Right at the top of the survey, respondents agreed overwhelmingly that only being shown items that would fit them, individually, the way they like would improve their shopping experience and help them to make better buying choices. This comfortably falls into most retailers’ definition of personalisation – so the conclusion is that fit-centred personalisation is welcomed by shoppers.

While we asked questions with response options that included the ‘personalisation of marketing material’, inconsistencies in responses across certain questions (and clearly stated uncertainty) hint that it is being obviously ‘marketed-to’ of which respondents are less than fond, rather than personalisation – a warning to retailers to carefully consider how they engage with 2016 shoppers from a marketing perspective.

Knowing the kind of individualised search-and-discovery experience that shoppers want, and considering the type of personal data that shoppers are prepared to share in order to receive a more personalised experience, it’s reasonable to conclude that when personalisation delivers an obvious or immediate benefit to the shopper then such personalisation is welcome, but when the shopper suspects that it’s more for the benefit of the retailer it is far less welcome. Such a conclusion supports the adage that unnoticed personalisation is good personalisation.

This is also supported by the scenario questions at the end of the survey: personalisation is never more noticeable than when it’s wrong, so there is an important precision aspect for retailers to consider when deciding the factors on which they will personalise. It is easier to be more precise with fit than taste; since taste is apt to change over a shorter period of time and with little warning, while the measurements aspect of ‘fit’ – that elusive combination of measurements and personal preference – is objectively measurable and changes more slowly, and preferences can be routinely captured.

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ABOUT FITS ME

ACKNOWLEDGEMENTS

Fits Me develops solutions that engage consumers during the apparel purchase process, enabling retailers and brands to capture both body measurements and fit preferences. Combined with Fits Me’s expertise in garment data, this consumer data may be applied to improving the apparel retail experience for consumers both individually and collectively, and to delivering new operational insights for retailers. Marquee clients include HUGO BOSS, QVC UK and Thomas Pink.

All brand, product or service names mentioned herein may be trademarks or registered trademarks of their respective owners.

PERSONAL DATA

There is clear dissonance between shoppers’ recognition of shopping issues (search and discovery, personalisation) and their willingness to provide the data that enables retailers to address these issues. Shoppers appear to be aware of the potential of their data, alert to its value, and suspicious when unnecessary data is being collected. Interpreting several questions together, shoppers (and younger age groups in particular, despite being generally more willing to share) may be savvy enough to realise that ‘unnecessary’ data will later be put to purposes unrelated to the task at hand – in particular, for future marketing, which is less enthusiastically received as previously concluded.

It’s impossible to conclude anything other than that, behind this, there is a significant trust deficit which retailers will need to work hard to overcome; shoppers are regularly assailed with stories of data ‘loss’, or misuse by all sorts of organisations, with responsible data users paying the price.

Where data collection is concerned, the messages seem clear: make sure your shoppers know when you are collecting information, the reasons for which you are collecting it, for what it may be used and, most importantly, with whom else you might share it.

Encouragingly, this survey – which to some degree inevitably leads consumers through a thought process – establishes that measurements and fit data are not considered especially sensitive, are willingly shared, and provide a very strong and highly acceptable foundation on which to personalise and otherwise improve their shopping experience.

METHODOLOGY

The survey results are described, above, in question order, in acknowledgement that the questions inevitably take respondents through something of a thought process which may influence their later responses.

Data were collected by Redshift Research in August 2015 from a nationally representative sample of 2,005 UK adults aged 18+ who agreed that they shop for new clothes. Interviews were conducted online and answers were coded to ensure that clearly inconsistent responses were impossible to enter.

In this particular study, there is a 95% probability that any survey result does not vary by more than ±2.2% from the result that would be obtained if interviews had been conducted with the entire UK population represented by the sample.

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Contact+44 8455 280570info@fits.me