Forbes: Cognizant’s Senior Vice-President of Retail and Consumer Goods Consulting Says Brand Experience Takes Centre Stage over Price for UK Shoppers

“Today’s shoppers—who use the online, mobile and in-store options available to them—know the price they are willing to pay, and the level of service they expect to receive in return,” says Steven Skinner. “They are adept at researching products, comparing prices and exploring delivery options. They know what they want.”

He adds, “Just as technology has given shoppers more information, it is helping retailers too. Digital technologies—such as social, mobile, analytics and cloud (SMAC) as well as sensors—allow retailers to track and understand customer behavior in unprecedented detail. This customer knowledge can help retailers identify and invest in the tools and technologies their customers really value. What’s more, digital technology also helps retailers monitor stock availability, communicate availability of in-store, digitally-enabled sales assistants, and help consumers to self-serve and find information on products more easily. Overall, this will help retailers improve customer loyalty and increase sales.”

“Brand experience is more important to UK shoppers than finding the best deals,” writes Forbes, citing Cognizant’s third annual UK Shopper Experience Study, “conducted with over 1,000 shoppers to explore their perceptions of retail today and understand what they want from retailers tomorrow, shows that consumers are willing to pay a little more for improved experience or convenience.”

Forbes notes, “With the capability to directly affect retail strategies, the study shows that shopping does not end with the sale. Service and after-sale support, such as the ease of returns, is a huge contributing factor in the choice of retailer, Cognizant found. In fact, 25% say they would choose a good returns policy over price. The rise of social media has also led to over half of shoppers (57%) writing reviews of their experiences online. Therefore, what happens during or after a shopping trip can have a huge impact on a retailer’s brand image—and ultimately the bottom line.”

“UK retailers are continuing to innovate and introduce new online and in-store technologies— such as beacons and location-based services—to improve the customer experience,” adds Forbes. “The study found that shoppers want interactive features that directly influence their purchase.”

Forbes reports, “The study also found that ‘showrooming’—where shoppers browse for items in-store but purchase them online—is now ubiquitous…Brand loyalty is another ongoing trend. Sixteen per cent of shoppers claim they are happy to pay more because of the perceived status of the retailer. Loyalty programs also have a big impact on where people shop. Nearly a third (32%) of UK shoppers say they are more likely to purchase products in a shop where they would get loyalty points, even if they know they can buy the products cheaper elsewhere. Eighty five per cent of UK shoppers are members of at least one loyalty program and nearly a third (32%) are members of between three and five, Cognizant revealed.”

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