understanding today’s savvy, demanding and …

U N D E R S T A N D I N G T O D A Y ’ S S A V V Y , D E M A N D I N G A N D

S C E P T I C A L S H O P P E R

D N AR E T A I L

2 // DENTSU AEGIS NETWORK : RETAIL DNA //

// DENTSU AEGIS NETWORK : RETAIL DNA // 3

F O R E W O R D

In 2016 when the first Retail DNA was published, it was a time when the retail market had undergone a revolution over the previous decade. The work was well-timed, sharing a deeper understanding of the ‘on-demand shopper’; a new customer whose shopping behaviour had been shaped by digital channels.

The intervening three years have witnessed significant shifts in the retail landscape, both online and in-store. This has been driven by ecommerce and the proliferation of digital platforms where all a customer’s shopping demands can be satisfied with a click, at any time. The results can be seen where shoppers are choosing to spend: in 2016 UK online sales accounted for £25.19 billion by 2018 they had grown to £34.46 billion; an increase of 27%.1 This growth has seen the rise of Amazon (as a retailer and a platform), direct to consumer brands, proliferation of online competition, the list goes on. Innovation and change are the new constants. This report strives to better understand today’s savvy, demanding and sceptical shopper. Retail DNA 2.0 is a return to the topic and an examines the earlier work. It outlines an understanding of which emerging behaviours became mainstream, and identifies what is new as the retail context has evolved and transformed. Dentsu Aegis Network and Canvas 8 have collected this insight by conducting a large-scale survey, speaking to retail and behavioural experts and finally the shoppers themselves.

The report uncovers the actions and motivations of today’s multi-channel consumer. It includes a generational look at all the life stages from Gen Z to Baby Boomers, not just millennials, which has unearthed stereotype -busting findings, providing actionable and relevant insights, exploring the impacts and differences across the categories of health and beauty, technology, fashion, and home.

C O N T E N T S

P 4 . S T A T E O F T H E R E T A I L N A T I O N

P 6 . U N D E R S T A N D I N G T O D A Y ’ S S A V V Y , D E M A N D I N G A N D S C E P T I C A L S H O P P E R - T H E S A V V Y S H O P P E R - G E N E R A T I O N T R E N D S

P 1 0 . B U Y I N G M O T I V A T I O N S

P 1 3 . D A T A D I V A S

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P 2 5 . T R U S T E D I N F L U E N C E

P 3 3 . B R I C K S & P I X E L S

P 3 9 . S U M M A R Y

The retail landscape in the UK is facing a headwind of uncertainty. Combined with the increased battle for attention in today’s always-on economy, brands are having to fight harder than ever to remain relevant in an increasingly cautious consumer environment.

In 2018, store closures across the UK were up by 36% YoY2 and high-profile high street casualties, such as Toys R Us and HMV, have bought the retail market into the spotlight. While increasing overheads for retailers with physical locations exacerbate pressures, these difficulties can also be seen beyond the high street for those that don’t adapt effectively.

The online store for BHS, which launched a few months after the high street brand went bust in 2016, also shut down in 2018. This can be attributed to several challenges in today’s ecommerce climate such as having a smooth customer journey, customer trust, and facing the rise of Amazon which already holds 50% of the ecommerce market.

Geo-political influences

The uncertainty following the UK’s decision to leave the EU has set British consumers’ confidence3 tumbling towards its lowest point since the referendum result was announced.4 Almost half of shoppers say Brexit is their biggest concern in 2019,5 but how is this impacting their shopping behaviours?

Our research shows that 63% of UK consumers are worried about the price of clothing in the event of a no-deal Brexit, and 27% report that they’ve already changed their spending due to the insecurity of not knowing how the economy will be affected. This reflects the widespread caution that is felt by many: indeed one in five Britons are already said to be stockpiling items such as tinned and dried fruits to protect themselves against the outcomes they fear from a no-deal.6

Yet it’s not just the potential impact on consumer’s wallet that these concerns are impacting - behavioural science tells us that heightened feelings of uncertainty increase people’s reliance on emotions to make decisions.7

Technology trends

People are embracing an explosion of new technologies, platforms and channels that fit more seamlessly into their hectic schedules. In 2018, Snapchat8 trialled a tool that lets people snap an object or barcode to get relevant

S T A T E O F T H E R E T A I L N A T I O Nproduct information on Amazon. Peer-to-peer payment app Venmo is making it easier for people to shop and pay for items through social media. And 5G is set to be rolled out9 in many UK cities by the end of 2019 – bringing users a faster, more seamless browsing experience.

However, there’s a perception from consumers that retailers are struggling to keep pace with these changes; 80% of UK consumers don’t think that retailers know what they like and 72%10 say retailers can do more to improve the overall shopping experience. Despite efforts to innovate and meet demand, consumer expectations are rising at a pace that is proving challenging to keep up with.

Bucking the trend

Despite this notable increase in cautionary behaviour, and the abundance of sensationalist media headlines on the state of the high street, retail in the UK is still a £360 billion sector and is estimated to have grown by around 2% in 2018.11

As noted by the retail think tank, there are spots of positivity. Value retailers for example are performing well and countering the trends seen in the wider market, as people increasingly seek lower-cost offerings.

t i f f a n i e d a r k eJ o u r n a l i s t a n d a u t h o r o f ‘ n o w w e a r e 4 0 , w h a t e v e r h a p p e n e d t o g e n e r a t i o n x ? ’

B R A N D S N E E D T O W O R K O U TW H A T T H E I R R O L E I S I N C U L T U R EG O I N G F O R W A R D A N D T H E Y H A V ET O I N N O V A T E A C C O R D I N G L Y .


The psychology of discounts and promotions

To understand the psychological influences on shoppers’ regarding promotions, we spoke to Stephen Atlas, Assistant Professor of Marketingat the University of Rhode Island and the principal investigator of the Mental Accounting and Pricing (MAP) Lab. According to Stephen, “Shoppers' expectations about discounts are at historic levels, and they’ will continue to grow. Many shoppers are so well-informed that they will expect to receive goods at the least expensive publicly available price for an equivalent good.”

S O H O W D O Y O UM E E T T H E S E G R O W I N G C O N S U M E R E X P E C T A T I O N S ?1. Communicate value

Pricing can be used to help communicate the value of products to consumers. Academic research shows that framing a price as a series of regular payments makes people think of the enjoyment they would derive from the product each time they use it, which can make them more likely to buy it.

Digital platforms have revolutionised consumer’s attitude towards promotions and deals. It has never been easier to research the product, find out what it costs and see if you can get it cheaper elsewhere, or if there is a discount code to activate.

The desire to bag a bargain has always existed but easy access to online information has been a chief contributor to accelerating it. We check our insurance and energy costs and we buy own label groceries as we know the products are sourced from the same manufacturers. More concerning for retailers, we also defer purchase of items until they are on sale. Reducing the reliance on promotions and sales and remain competitive is a key concern for any modern retailer.

In today’s retail context it is more important than ever to understand the actions and motivations of today’s multi-channel consumer. From discounts and promotions to the impact of life stages on purchase decisions, what is in the DNA of today’s savvy, demanding and sceptical shopper? The rise of the savvy shopper Everybody loves a discount – while 66% of UK adults go out of their way to save money when shopping, 84% of the population are self-confessed bargain hunters.12

U N D E R S T A N D I N G T O D A Y ’ S S A V V YD E M A N D I N G A N D S C E P T I C A L S H O P P E R

“I check for discounts every time I shop because there’s always a good deal somewhere, whether it’s free delivery or discounts off.” 45-year-old Nicola from Tyne and Wear.

This mindset has become increasingly popular. In 2018, 38% of consumers described themselves as ‘thrifty’,13 with an additional 23% reporting that they’d like to be thriftier. Several factors have helped drive this rise in bargain seeking behaviour. On top of shaky consumer confidence causing financial concern, the status gained from finding and sharing bargains and the added convenience from technological advances make this behaviour both easier and more desirable. According to the Competition and Markets Authority (CMA), 85% of Britons have used a digital comparison tool at least once, and over a third use them at least weekly, meaning they can readily access the best deals on the market.14

Consumers are showing a preference towards value for money as well as promotions. This has seen a clear shift towards everyday low price (EDLP) propositions contributing to the growth of discounters – such as Aldi, Lidl, B&M and Home Bargains – which have been well-placed to capitalise on this trend. This trend is set to grow. The UK Discount Retail market is set to grow by 36.1% reaching a total value of £32.5bn by 2022 according to GlobalData.15 This will make discount retailers even more relevant as consumers will continue to look for bargains as inflation squeezes their disposable incomes.



I L I K E T H E I D E A O F A D I R E C T D E B I T T H A TC O M E S O U T E V E R YM O N T H O R S O T O G E TR E F I L L S O F T H EP R O D U C T S S E N T T O M Y D O O R . Y O UD O N ’ T H A V E T O D OA N Y T H I N G , B U TY O U ’ R E A L W A Y S G E T T I N G T H E I T E M T H A T Y O U N E E D .

P e t e r2 9 , L e e d s

When you’re imagining paying an amount over time, you’re not just thinking about the pain of having lost the money, but also the joy of having that product over a period of time. Whilst paying through a subscription might make a product more expensive, it also helps people visualise the future experience of that product and you can visualise getting your box each month.

2. Manage expectations

Consumers may love to see an advert promoting a sale – but the words used can lead to them to formulate their own expectations about how much they will save. Subtle changes to the wording can shape these expectations.

If expectations aren’t met, this can have a detrimental impact on consumer’s relationship with brands. Whilst, we think customer dissatisfaction is something that happens after purchase, consumers can be influenced at any given stage, which is why their expectations need to be managed throughout the whole process.

3. The thrill of a bargain

The idea of saving money makes people feel good – people will naturally place value on something they feel is a bargain. However, some people are more prone to feeling the thrill of bargain hunting than others.

Stephen Atlas, said: “There are different sources of value derived from a transaction, or acquisition utility. There is the natural, intrinsic value of the item you’re buying and then transaction utility – people are biased to put more value on something they get for a good price. Scientific theories suggest that this can be influenced by people’s early childhood experiences and their past purchasing experiences.”

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By employing audience profiling to identify those individuals who will be most responsive to discounts, brands can reap the rewards.

“I’m a victim of when a store says, ‘It’s normally £300, it’s now only £219’. I love to see an amount saved. I think, ‘Oh, that’s fabulous’, even though I’ve seen it before and it’s probably cheaper elsewhere. But in my mind, I’m getting a brilliant bargain.” Pippa, a 44-year-old Londoner.


It’s not "one size fits all" when it comes to shopper behaviours. Throughout this report we will explore how different generations can be influenced across the customer journey.

To better understand the shopping behaviours of both Gen X and Baby Boomers - groups often misunderstood by brands - we spoke to Tiffanie Darke, a generation expert, editor-in-chief at Harrods and author of Now We are 40, Whatever Happened to Generation X?

G e n XOften described as the ‘forgotten middle child’, Gen X can feel ignored by brands. In fact, despite 85% of purchasing decisions being made by women aged 40-plus, 91% of them say advertisers don’t understand them.16

But with Gen Xers spending the most of any generation – they are expected to part with £786 a week in 201917 – there is a significant opportunity to better cater to this demographic.

S o w h a t d o b r a n d s n e e d t o k n o w a b o u t G e n X s h o p p e r s ?

Gen Xers are time short

Between busy work lives, caring for families and home chores, Gen Xers are time poor. So shopping is often a matter of convenience. Globally, Gen Xers make an average of 19

G E N E R A T I O N T R E N D S online transactions a year, 18 compared to 15 and 16 among Boomers and Gen Yers. But beyond this, they’re looking for brands to lend a hand; a quarter 19 want easy-to-repeat purchases and product suggestions based on sales history.

Gen Xers are brand loyal

Gen Xers are the generation most likely to be loyal, with 3 in 520 agreeing that once they find a brand they like, they’ll stick with it. Whether it’s buying a dish from Le Creuset or Start-Rite shoes for their kids, they’re nostalgic about the brands they used when they were younger.

Gen Xers want ethical options

Gen Xers are sensitive to company values. They’re seeking out brands that have a positive impact and tend to put social consciousness at the heart of their purchases – 55% of Gen Xers say they would pay more for eco-friendly products.21

B a b y B o o m e r sBoomers often feel neglected by brands – 66%22 of Boomers feel ignored by marketing communications and 82%23 say that their favourite retail brand no longer understands them. But this generation makes up about 40% of the market share of consumers, meaning there’s a significant opportunity to better cater to this demographic by demonstrating an understanding of what is important to them in the shopping journey.


S o w h a t d o b r a n d s n e e d t o k n o w a b o u t B o o m e r s ?

Boomers prioritise customer service

Regardless of where they’re shopping, Boomers still expect the high level of customer service that they’ve become accustomed to. In fact, 43%24 say that the inability to reach a live person for customer support is the most frustrating thing in a poor-customer-service experience. And it’s worth the effort of getting this right. In fact, research suggests that UK retailers are missing out on £27 billion25 by not better catering to Boomer shoppers.

Boomers are becoming more adventurous

As they approach or enter retirement, over half of Britons’ Boomers are feeling more adventurous in their approach to life.26 In fact, 39%27 of over-55s say the best thing about getting older is finally having the time to do whatever they want.

It means they’re becoming more adventurous in their shopping habits – whether it’s trying new brands or opting for retailers that will deliver exciting memorable experiences – creating ripe opportunities for new brands to reach them.

Boomers are focusing on quality

The combination of kids moving out, lifelong savings and many being retired means that Boomers often have the time and money on their hands to seek out higher-quality products.

According to YouGov, two thirds of Baby Boomers don’t mind paying more for good quality products.28 Globally, Baby Boomers make an average of 15 online transactions a year – the same number as Gen Y – but spend on average $30 more per transaction.29


What are the behaviours that are influencing the consumer today and how can brands meet the expectations of the savvy, demanding and sceptical shopper?

We have identified four behaviours which influence the consumer journey; we explore what they mean for brands across the retail market.

M O T I V A T I O N S & B E H A V I O U R SIn our 2016 Retail DNA report, we identified six trends shaping retail. Here we outline how these behaviours have evolved and identify new influences on the consumer journey. The following behaviours we identified in 2016 have since become mainstream:

P r i v a t e c h a n n e l s :

Communicating through private channels such as WhatsApp and Facebook Messenger, has become the norm. In 2018, 52%30 of consumers had used a direct chat function to get more information on a product or service when shopping on a retailer’s website. Just under half of those who have experienced online chat said the experience was quick and easy and 28%31 said that it saved them going into the store.

W i s h l i s t S h o p p e r s :

Window shopping has gone digital - the online basket has become a distinct and dedicated space between browsing and buying. In 2018, 41% of Britons abandoned a transaction at an online checkout, amounting to around £18 billion each year.32 This compares to 24%33 who had walked away from a purchase in-store while placing an item in a physical shopping basket means you plan to purchase it. 17%34 of shoppers who abandon items online do so because they simply like to ‘window shop’ with no intention to buy.

E d i t o r s P i c k :

Today, this is more in demand than ever. Curated feeds on social media have left people unwilling to trawl through endless pages of items to find what they want; 48% of global consumers have left a business’s website and made a purchase on another site or in-store simply because it was poorly curated.35 With nearly six hours a day spent on digital media, there’s a growing desire for platforms that can minimise the demand they make onusers’ time. In reaction, TripAdvisor is shifting its offerings to emulate Instagram, with more content from publishers and influencers to help overwhelmed people – transforming itself into a one-stop shop for inspiration and execution.

D a t a D i v a s

People see their data as currency for personalisation.Prescriptive Perfection has shifted from people happily sharing data for personalised services, to people realising the value of their data and expecting personalisation as the norm.

A u t o - m a t e s

People are looking to new technologies and subscription boxes to automate their purchases. Stopwatch Shopping has evolved from people not wanting to shop for basics, to them looking to streamline all stages of the shopping journey.

T r u s t e d I n f l u e n c e

Buying Influence has moved from people wanting products promoted by peers, to people seeking authentic sources of recommendation.

B r i c k a n d P i x e l S t o r e s

The normalisation of omnichannel shopping and technological developments in the last three years means people now expect brands to offer the benefits of online and offline shopping, at all times.


Secondary research We used a variety of sources to combine and assess the latest trends in the retail sector which gave us a good basis and direction for the primary research.

Interviews

We interviewed 10 UK shoppers between the ages of 20 and 60 to deep dive into what these new behaviours look like in action. We ensured that these participants were representative across the UK regions and were active shoppers online and offline.

We also carried out in-depth interviews with two retail experts:

• Glynn Davis is the editor and founder of Retail Insider. He is also an experienced business writer specialising in the retail sectors for publications including the FT, Morning Advertiser, Retail Bulletin and Retail Week.

• Tiffanie Darke is a journalist, editor, Gen X expert and author of Now We are 40, Whatever Happened to Generation X? She is the editor-in-chief at Harrods and formerly was the food and drink editor for the Daily Telegraph and a former editor at the Sunday Times Style magazine.

Quantitative surveys

We carried out two separate online quantitative surveys through our OpinionHub panel. The first of these focused on the behaviours personalisation and influence, whilst the second looked at stopwatch shopping and Brick & Pixel stores.

M E T H O D O L O G Y


D a t a D i v a s P e o p l e s e e t h e i r d a t a a s c u r r e n c y f o r p e r s o n a l i s a t i o n


In 2016, we identified the behaviour Prescriptive Perfection - people were happily sharing data with brands to receive personalised experiences. As more brands have introduced tailored offerings,expectations have risen and 48% of consumers36 now feel frustrated when companies fail to offer some form of personalisation.

This is, in part, being driven by an increasing desire to feel unique. And this doesn’t just apply to products – 56% of customers37 are more likely to shop at stores that recognise them by name. From brand communications to promotions, this expectation is now present in all aspects of the shopping journey.

The relationship with personal data is also shifting. In 2015, 71%38 of Europeans felt that they had no choice but to disclose personal information to access products and services. However, highly publicised data breaches,39 have led to consumer concern over data transparency. Now half40 of people in Britain state that brands being transparent in their use of personal data would make them more likely to shop with one brand over another.

These data breaches, combined with the introduction of GDPR, mean people have become more conscious of the value of their personal information. Britons believe their data is worth £25441 a year, and 67%42 are worried about what happens to data they share when shopping online.

T H E C A M B R I D G E A N A L Y T I C AS C A N D A L H A S H I G H L I G H T E DH O W P R E V A L E N T T H E U S E O F D A T A I S A N D H O W W E S H A R EI T A R O U N D A L L O V E R T H EP L A C E P E O P L E H A D B E E N S O R T O F O B L I V I O U S T O I T ,E V E N T H O U G H T H E Y K N E W I T W A S H A P P E N I N G . N O W ,T H E Y ’ R E G E T T I N G M O R ES E N S I T I V E T O I T .

g l y n n d a v i sE d i t o r a n d f o u n d e r o f r e t a i l i n s i d e r

For consumers, this can mean that if they do share it, they want to retain control over how it is used and expect a personalised experience that feels considered and premium.

Leading the way in helping consumers take greater control over their data is digi.me. This centralises all the information a person givesout each day, giving users complete visibility over what they are sharing and control over who has access to their data. With over 100,000 users registered so far, there’s clearly an appetite for these kinds of interventions.



B E A U T YP e o p l e w a n t c o s m e t i c s t o b e t a i l o r e d t o t h e i r s k i n c a r e n e e d s

Finding the perfect beauty products can be difficult – 87%45 of women in the UK are confused about the skincare products they should use. While before people might have sought out expert opinion, they’re now also looking to brands to use their data to offer suggestions – the HiMirror Mini Premium smart device offers in-depth skincare analysis and custom recommendations, which adapt to daily changes in a user’s complexion – or even create personalised projects altogether. For example, Function of Beauty asks customers to complete an online quiz to create custom-made haircare products.

H o m eP e o p l e c o u l d u s e d a t a t o h e l p b r a n d s c l e a n t h e i r h o m e s

Despite cyber-security fears, people are adopting smart home devices – 72%46 of Google Home and Amazon Echo owners say the device has become part of their daily routine. It’s opening an opportunity for brands to use data to better understand the home. After all – people love outsourcing their home chores. Roomba i7+, for example, collects and uploads data about owners’ homes to optimise cleaning paths when vacuuming.

S E C T O R S P O T L I G H TT E C H N O L O G YP e o p l e a r e p u t t i n g p r e s s u r e o n b r a n d s t o k e e p t h e i r d a t a s e c u r e

84%43 of consumers identify good data security and the protection of personal information as the key characteristic they look for when deciding where to spend their money.

Technology companies have led the way in offering extensive personalisation, but in doing so they have made high profile mistakes around data sharing. The errors made by technology companies can provide valuable learnings, and brands need to show that they treat data privacy seriously.

F A S H I O NP e o p l e w a n t b r a n d s t o h e l p t h e m g e t a b e t t e r f i t

People are seeking out ways to ensure the purchases they make are right the first time. “When I’m buying online, I’ll see things in the picture on a skinny person and they look lovely, but when they come to me – they don’t fit or look flattering,” says Jessica, 27, Birmingham. “It would be good to see a different range and how it might look on a bigger person.” People are willing to share data to get personalised recommendations on sizing, or even pay a premium. 55%44 of consumers are willing to pay over 20% extra for personalised fashion products or services. Brands are tapping into this; while True Fit compares data provided by users against information from partner brands to recommend the right size, MySizeID creates personalised body profiles that people can use to find consistent sizes across online stores.



M e e t J u s t i n e Bristol based Justine, 47, doesn’t want to spendhours browsing online, so she looks for websitesthat save her preferences and suggest productsshe might find relevant. She is happy to share her personal data in return for more personalised offers and products. However, she still wants to maintain a sense of control over her information – and worries about companies sharing it without her knowledge.

I ’ M N O T T O O W O R R I E DA B O U T S H A R I N G M YD A T A T O B E H O N E S T . I J U S T F E E L T H A T Y O UC A N D E C I D E H O W M U C HY O U W A N T T O S H A R EA N D H O W M U C H Y O UD O N ’ T . I D O N ’ T M I N DS H A R I N G D A T A F O RP E R S O N A L I S A T I O N I F I T ’ S A C C U R A T E .


D A T A D I V A S A N D G E N E R A T I O N T R E N D SGen Xers are more reluctant to share data but will do so for personalised products

Gen Xers are becoming particularly wary when it comes to sharing data. “I’m not too keen on sharing my information. I don’t want to be bombarded with emails all of the time,” says Anthony, 40, Manchester. “When I’m filling in an online form and it says, ‘Do you want to receive such and such?’ I will always say no.” Making sure that people receive high levels of personalisation can convince them to share their information.

Boomers want brands to explain how they use data

For Boomers who didn’t grow up with technology, a lot of their anxiety with data use comes from wanting more information. Just 35%47 of global Boomers are comfortablewith companies applying relevant information about them in exchange for personalised engagement, compared to 64% of Gen Y and Gen Z who feel that way. So they’re looking for brands that are transparent in how they collect their data and how it is used.

D A T A D I V A S I N A C T I O NH o w c a n y o u m e e t t h e e x p e c t a t i o n s o f D a t a D i v a s

Overcome the pitfalls of shopping online

Consumers are looking to brands to provide personalised services to tackle the pain-points of buying online – such as not being able to see the product in person.

They want retailers to help them get their purchase ‘just right’ the first time around, acting as a digital equivalent of a tailor.

This brand input is key - 42% of consumers who are interested in customised products or services would rather be led by brands and choose from a range of options.48 One example is Stitch Fix, which combines data and human stylists to deliver personalised recommendations to each of its customers. The growth of augmented reality (AR) will also have a huge impact on retailers to help overcome the pitfalls. Amazon’s AR mirror superimposes virtual clothes on a person’s reflection, allowing them to see how the item would look on them.

Know your audience

Ensuring you know as much as possible about who your audience is and who you’re targeting with messaging is essential. There’s now an abundance of data at marketers' disposal but using it effectively to identify and engage with an audience through targeted and personal messaging is key.

Be creative

It’s integral that you connect the dots from a creative perspective too and ensure you use highly targeted creative messaging, especially on social platforms where consumers are already used to a highly tailored ad market.

Campaigns that determine targeted promotions based on past interactions, and other data about the customer are even more impactful.

Manage expectations

Brands have to manage consumers' expectations, especially when it comes to discounts.

Incorrect or misleading pricing can have a huge impact on credibility. Any creative messaging or pricing stated during acquisition should be 100% accurate. From Paid Search, to radio to TV and websites, the pricing should be accurate across the consumer journey.

As people look for higher levels of personalisation in return for their data they will be looking for brands to offer discounts that reflect their preferences and what they already buy – 60% 49 of Britons already want offers to be tailored to them.


a u t o - m a t e s P e o p l e a r e l o o k i n g t o n e w t e c h n o l o g i e s & s u b s c r i p t i o n b o x e s t o a u t o m a t e t h e i r p u r c h a s e s



At the heart of this rise is hunger for convenience. Brands are recognising the desire for hyper convenience and positioning themselves to help burned-out Britons manage the day to day. Championing consumer convenience, Urb-It helps out last-minute Brits with a delivery service that sends presents to their loved ones within an hour – simply by browsing potential gifts by price, gender or a specific section on the app.

Despite these developments there’s still a long way to go to fulfil the potential when it comes to purchasing. According to CNBC, only 7% of smart speaker owners in the UK are utilising the assistants to make physical purchases compared to 65% who choose to play music.58

Britons feel more time poor than ever – 7 in 10 think their lives have become ‘too busy’ and they need an additional four hours a day to get everything done.50 It means people are looking to streamline the shopping journey for a wider range of products. 69% of UK shoppers51 have decided not to buy an item because of the size of the queue and 50%52 say the number of steps to complete the purchase is a top pain-point for online shopping.

H A R N E S S I N G T E C H N O L O G YPeople are looking for retailers to harness the technologies they use every day to streamline the path to purchase. While 33% of Britons believe Augmented Reality (AR) could help them to narrow choices when shopping, 68%53 of those who have already used AR say it would be most useful if it ‘can figure out the right information to show me at the right time all by itself’.

Over 90% of retailers expect to have Artificial Intelligence (AI) or virtual assistant technology operating in-store and online within the next five years, with 77% saying that simplifying the customer experience is their core ambition.54

V O I C E S E A R C HIt’s predicted that almost half of British households will own a smart speaker by 2022.55 In fact, 34%56 of Britons already use their digital assistant for shopping online.

Shopping through voice-activated devices is predicted to rise from £200 million in 2018 to reach £3.5 billion by 2022, and more than 50% of search queries will be voice-driven by 202047.

P E O P L E A R E G E N E R A L L YI M P A T I E N T , T H E YD O N ’ T W A N T T O W A I TO R Q U E U E T O P A Y .T H E Y E X P E C TE V E R Y T H I N GI M M E D I A T E L Y , D I G I T A LH A S E N A B L E D U S T OH A V E E V E R Y T H I N G W EW A N T O N D E M A N D . T H E D E S I R E F O RC O N V E N I E N C E I S N O TG O I N G A W A Y – I T ’ SF E E D I N G I N T O L O T SO F B E H A V I O U R SI N - S T O R E L I K EC O N T A C T L E S S W H I C HH A S A B S O L U T E L YE X P L O D E D .



B E A U T Yb e a u t y l o v e r s a r e f i n d i n g v a l u e i n s u b s c r i p t i o n b o x e s

Research suggests60 that male grooming subscriptions could attract almost 2 million members by 2022, making it the fastest growing subscription category. There is a desire for easier ways to buy health and beauty products – from razors from Harry’s to loo roll from Who Gives A Crap. In fact, 11%61 of UK consumers have a subscription for personal grooming and 10% for personal health. Technology is also serving to make shopping for beauty products more convenient. For example, the ModiFace app was developed to let people virtually try on makeup and new hair colours without any commitment. L’Oréal capitalised on consumer interest in this, acquiring the app to let people browse and try on their products before purchasing, for a seamless customer experience.

H o m eP e o p l e e x p e c t r e t a i l e r s t o o f f e r c o n v e n i e n t w a y s o f b u y i n g f u r n i t u r e

Be it due to high student debt, high house prices or high rent, Gen Yers aren’t getting on the property ladder – one in three will never own a home. As a consequence, they’re house-hopping and seeking out companies that offer convenient furniture that could be transported. Tapping into this, Crisscross furniture aims to make people’s lives easier with reusable furniture kits. Due to the bigger commitment of home purchases, augmented reality has proved popular in this sector, enabling consumers to experience products before buying.

S E C T O R S P O T L I G H TT E C H N O L O G YP e o p l e w a n t t o m a i n t a i n c o n t r o l o v e r t h e i r m o s t e x p e n s i v e t e c h p u r c h a s e s

People are increasingly happy to outsource large purchases, but for the biggest ticket items – such as a TV or computer – they still want to maintain control. 62% of UK consumers would rather buy expensive products in-store, than online. A key factor is peace of mind, with 82% believing that purchasing from a bricks-and-mortar store gives them more security when shopping for expensive items. In fact, 79% of UK shoppers have seen an expensive product online that they liked, but have gone in-store to make the final purchase.59

F A S H I O NP e o p l e e x p e c t t e c h t o e a s e t h e p r o c e s s o f s h o p p i n g f o r c l o t h e s o n l i n e

“The thing with online shopping is that it becomes less of a convenience when you have to return clothes that don’t fit,” says Lauren, 25, Leeds. “So, having services to help it stay convenient is important for me personally.”

Although a lot of people are shopping for clothes online, many still crave intuitive services that can help them cut their time spent browsing through apps. ASOS allows customers to explore new products through a Google Home smart speaker, while streaming the product images on their phone to create a more engaging browsing experience.



Embrace voice

Research shows that 70%64 of purchases using voice search are for low-value products, made by consumers who know precisely what they want to buy. Argos was the first retailer in the UK to launch a voice shopping service to allow people to reserve products in a local store using a Google Home smart speaker.

While we are still in the early stages of voice search as an integral part of the ecommerce journey, it is important to be leading the pack and ensuring your search terms are optimised using featured snippets in Google. This will not only capture more Organic Search traffic, but also position brands front and centre for a voice related result.

Subscription services can drive brand loyalty

The desire to outsource buying products – tothe extent that people don’t even have to remember to order them – is proving popular among shoppers who prize convenience. 42%65 of people who have a subscription say they signed up because it is more convenient than repeat ordering.

Not only is it convenient for the customer but it is also driving greater loyalty. However, this can come at a cost and subscription services can impact already squeezed margins.

Connect online and offline experiences.

People want to maintain control over their most expensive purchases, therefore it is important to ensure your offline presence connects to your online presence. One way to do this it to ensure Google My Business (GMB) is optimised for search. Ensuring accurate store locations and opening times can help create credibility with time poor shoppers.

IKEA Place, for example, launched in 2017, and lets customers place furniture through the app to see how it would look in their house. Walk-through images are also being developed through VR headset technology, enabling consumers to experience a room in 3D, with B&Q, Bathstore and Wren Kitchens investing in technology to help bring rooms to life.

A u t o - m a t e s i n A c t i o n H o w c a n b r a n d s m e e t t h e e x p e c t a t i o n s o f a n a u t o m a t e

Outsource minor everyday tasks

As people are increasingly seeking to automate the process of buying everyday items, making this process seamless can create huge value. Research shows63 that people who spend their money on time-saving purchases, such as meal kits or cleaning services, report greater life satisfaction. Removing the need to stay in for parcel deliveries, The Amazon Key system combines a smart lock and app to let couriers enter homes to deliver parcels, with owners able to keep watch through a security camera. And in the US, AI tech firm AutoX is piloting a driverless grocery delivery service that actually gives shoppers the opportunity to choose their goods from the car – removing the need to venture out to the shops.

Help find the best deal

The average Briton spends almost nine months of their life finding great deals when shopping. And as people look for ways to automate the shopping journey, they will look for ways to streamline this process. Tapping into this with a database of over 21,000 stores, Honey is a browser extension that aims to automatically apply the best, and most relevant, discount code to a consumer’s online order.


M E E T M I C H A E L

49 year-old Bristolian Michael has a hectic work schedule which leaves him with little free time – meaning that he wants to dedicate these hours to the stuff he loves – such as spending quality time with his wife and walking his three dogs. He looks for any way he can streamline the shopping journey. He now uses his Google Home to do his shopping list ashe’s cooking.

T I M E I S T H E E S S E N T I A L F O RM E , S O I T R Y T O W A S T E A SL I T T L E A S I C A N . W H E N I ’ MC O O K I N G A N D I S E E T H A T I ’ V E R A N O U T O F S O M E T H I N G ,I J U S T T E L L G O O G L E T O A D D I T T O T H E S H O P P I N G L I S T S OT H A T W H E N I G E T T O T H ES T O R E I ’ M K I N D O F H A L F W A YT H E R E . I T W O U L D B EF A N T A S T I C I F I C O U L D J U S TW A L K I N T O T H E S H O P A N D S E EM Y I T E M S I N A B A G , R A T H E RT H A N W A I T I N G F O R A V A N .


t r u s t e d i n f l u e n c e P e o p l e a r e S e e k i n g a u t h e n t i c s o u r c e s o f r e c o m m e n d a t i o n s


The research stage is a relatively new step in the consumer journey, with shoppers now able to browse multiple retailers online and mobile serving to extend potential browsing periods to new time-slots – such as the commute to work. GlobalData research has found that the average amount of time consumers spend during the research stage of the purchasing process of a typical non-food product increased from just less than 60 minutes in 2001 to approximately 153 minutes in 2017.66

In 2016, we identified that a big part of the research stage was Buying Influence, which described how people are increasingly interested in products promoted by peers. This is still the case today – 8 in 1067 Gen Yers claim to never buy a product without first reading a review and 9 in 10 people68 trust the reviews they see on TripAdvisor, Yelp and Amazon. Research in 2018 shows that 1 in 469 Britons have purchased a product as a direct result of a recommendation from an influencer.

But narratives around fake news and the unreliability of online sources have given rise to a wariness around online recommendations. News headlines about five-star reviews being bought by brands online are making people more suspicious of ratings.

A positive review is no longer shorthand for quality. Peer recommendations will only be influential if they’re from authentic, trusted sources. In the wake of influencer fatigue, big social media stars are no longer seen as peers – they’re now seen similarly to celebrities. It means people are looking for those they deem to be more authentic, with the top three traits70 of a successful influencer being genuine, having real expertise and being relatable to their lives.

I N F L U E N C E R S H A V E B E E N U N D E RQ U E S T I O N . N O W , W E ’ R E S E E I N G A R I S E I N M I C R O I N F L U E N C E R SW H I C H W O N ’ T H A V E A S M U C HB R O A D I N F L U E N C E B U T I T A L L O W SM A R K E T E R S T O T A R G E T V E R YS P E C I F I C A U D I E N C E S . B U T T H E YH A V E T O B E R E A L L YT R A N S P A R E N T A B O U T T H E F A C TT H A T T H E S E P E O P L E A R E G E T T I N GC O M P E N S A T E D F O R I T .


However, as people are concerned about where to put their trust, there will be a shift towards a desire for more transparency around paid promotions and adverts, and whether they trulybelieve in the product.

After all, 36% say that the reason micro influencers are more appealing is because the content they produce is more transparent and authentic and hence more trustworthy. In fact, 90% of marketers agree that brands and influencers will need to take authenticity and transparency more seriously, for influencer marketing to be sustainable.71


// DENTSU AEGIS NETWORK : RETAIL DNA // 27// DENTSU AEGIS NETWORK : RETAIL DNA // 27


B E A U T YP e o p l e w a n t r e c o m m e n d a t i o n s f r o m o t h e r b e a u t y j u n k i e s

With consumers craving more authentic and real-life tips, people are looking for ways to connect with like-minded beauty junkies to review products collaboratively. It’s why they are flocking to spaces like Sephora’s Beauty Insider Community, an interactive online platform available to members of the brand’s loyalty programme, which boasts more than 40,000 active users.

However, there has been a consumer kick back to some of the controversies around influencers in beauty, and some brands have turned to innovation to evade this.

H O M EP e o p l e w a n t t o g e t a n a u t h e n t i c r e v i e w o n t h e q u a l i t y o f h o m e p r o d u c t s

Due to the higher price point, shoppers will dedicate more time to researching big-ticket purchases in the home. “If it’s something big and I have to spend a few hundred pounds, such as a washing machine or a sofa, I’ll definitely have a look at reviews to check the quality,” says Jessica, 27, Birmingham.

As younger generations move into sourcing ideas for the home, people are starting to browse more on inspirational sites, and 44% of people aged 16-34 look for ‘ideas’ sources online.72 However, because home

s e c t o r S p o t l i g h tT E C H N O L O G YP e o p l e u s e r e v i e w s t o r e a s s u r e t h e m s e l v e s w h e n b u y i n g t e c h p r o d u c t s

Technology products usually come with a hefty price tag and often the shopper can’t return them unless they’re faulty. Beyond handling the item in-store, people are generally unable to use it and check that it fits their needs. But authentic reviews that illustrate the various functions of devices can offer them the information they need – and these tend to document the users’ experiences over time. “When I’m researching tech items, I want to understand how they work. I would love to be able to compare TV quality between different brands on my own screen, or if it was sound quality being able to play it through my speaker. It would make such a big advantage for a buyer,”explains 29-year-old Peter from Leeds.

F A S H I O NS o c i a l m e d i a a l l o w s p e o p l e t o v i e w a p i e c e o f c l o t h i n g a s p a r t o f a l i f e s t y l e

Fashion is closely linked to identity, it is how people present themselves to the world. And seeing products on people’s social media feeds as part of an outfit can be more appealing; they’re not just recommending a product, they’re also giving advice on how to wear it. “I like looking on Instagram, because you get to see how people style themselves,” says Lauren, 25, Leeds. Fashion brands of all sizes have taken advantage of this trend.


The success of Instagram as a medium for menswear inspiration lies in its seamless incorporation into everyday life – 56%76 of fashion-focused images for men are of whole outfits rather than focused shots on a particular item or brand name. Meanwhile, Reddit’s forum r/MaleFashionAdvice boasts over 875,000 subscribers by offering a space for men to discuss style tips, critiques, and recommendations for all budgets.

Authenticity

As trust in more powerful influencers falls, people are looking towards micro-influencers – those with fewer followers that can spark greater engagement because their content feels more authentic. In fact, Instagram users with 10,000 to 100,000 followers have a 2.4%77 like rate, compared to 1.7% for those with more than a million. 61%78 of consumers say micro-influencers produce more relatable content. “There’s a brand called In The Style that features not celebrities but smaller socialites, like Love Island stars posting what they’re wearing – I tend to follow their posts,” says Lauren, 25, Leeds.

Manage your ratings & reviews

Ratings are a key part of online reviews – 54% of people79 pay attention to the average star rating when judging a local business on reviews. These simple visual signals of other people’s experiences can help consumers save time when deliberating their own choices. However, academic research suggests that people are subject to binary bias80 when reading such reviews. When looking at ratings on a continuous scale, people tend to split them into positive and negative groups, softening the impact of extreme reviews.

products are so personal – they need to fit with the aesthetic of your home and match your personal style – people are less likely to focus on reviews in other areas.

T r u s t e d i n f l u e n c e a n d G e n e r a t i o n T r e n d sGen Xers feel able to make informed purchase decisions themselves

Instead of looking to influencers for recommendations, Gen Xers prefer to conduct their own research – 56%73 research online for reviews, while 20% talk to friends and families before committing to an online purchase.

Boomers value the opinions of people they know in real life

While 37%74 of British Boomers would try a brand they haven’t tried before if the brand or product was recommended by family or friends, there is less interest in the opinions of online influencers.

T r u s t e d i n f l u e n c e i n A c t i o n H o w c a n y o u m e e t t h e e x p e c t a t i o n s o f c o n s u m e r s

Social media a medium for menswear Social media is proving to be a space for men to explore fashion and 54%75 of men use social media every day to search or buy products online, compared to 25% of women.

Interpreting a mildly positive review in the same group as an extremely positive review and a slightly negative review will be taken in the same category as the most scathing review. In order to challenge the nature of binary bias, Amazon has rolled out a video review system, so consumers can have more information when searching for reviews on its site.

Using ratings and review data in your digital acquisition creative and copy can help to reinforce positive messages, for example in organic search. Including such information can encourage greater confidence and in turn interaction with the ad. Reaffirming the ratings and review can increase trust and credibility.

Managing negative reviews is also important, responding with a human and personal response can demonstrate a genuine and caring business. Interaction in this way can help build relationships with consumers.

Use influencers to drive discounts

As people look to trusted sources of information when shopping, there are opportunities to offer discount codes through influencers. Presenting these promotions through people they already trust, could mean they put more faith in them than those they see on a brands social media.



O N L I N E I N F L U E N C E R S H E L P P R O V I D ES O C I A L P R O O F F O R B R A N D S A S W E L L A S P R O D U C T R E V I E W S . W H E N A B R A N D D E V E L O P S R E L A T I O N S H I P S W I T H I N F L U E N C E R S , I T C A N E N C O U R A G E I N F L U E N C E R S T O P R O M O T E S P E C I F I C D I S C O U N T C O D E S . T R A C K I N G U S E S O F T H E S E D I S C O U N T C O D E A L S O P R O V I D E S A M E A S U R E O F T H E V A L U E O F T H A T I N F L U E N C E R R E L A T I O N S H I P F O R T H E B R A N D .

S t e p h e n A t l a sa s s i s t a n t p r o f e s s o r o f m a r k e t i n g a t t h e U n i v e r s i t y o f R h o d e I s l a n d a n d t h e p r i n c i p a l i n v e s t i g a t o r o f t h e M e n t a l A c c o u n t i n g a n d P r i c i n g ( M A P ) L a b .

M e e t L a u r e n 25 year-old Lauren from Leeds loves browsing on social media – it gives her inspiration for her fashion decisions and ideas for how to turn a piece of clothing into an outfit. She will always read reviews before buying – especially online for reassurance about quality. And if there aren’t any reviews on a product, she prefers not to take a blind chance and will abandon the purchase.

I L I K E L O O K I N G O NI N S T A G R A M B E C A U S E Y O UG E T T O S E E H O W P E O P L ES T Y L E T H E M S E L V E S . I T ’ SO N E T H I N G T O G O “ I L I K ET H A T J U M P E R , ” B U T I F I S E E S O M E B O D Y O N I N S T A G R A M W E A R I N G I T ,“ I ’ D B E L I K E O K A Y , I ’ L L G E T T H A T . ” P L U S , Y O U C A N J U S T C L I C K ‘ S H O PN O W ’ W H I C H I S P R E T T YC O N V E N I E N T .

b r i c k s & p i x e l s P e o p l e e x p e c t t h e b e n e f i t s o f o n l i n e a n d o f f l i n e s h o p p i n g a t a l l t i m e s



The lines between online and offline shopping have blurred and it’s no longer enough to offera seamless omnichannel ecosystem. People want an ecommerce experience when shopping offline and vice versa. Think combining the convenience of shopping online with the experience and tactility of venturing in-store.

With 82%81 agreeing that the rise of online shopping has damaged the high street, and 56% that the customer experience is better in physical stores, consumers clearly still have an appetite for shopping in-person that they want to mix with the convenience of e-retail.

Brick-and-mortar shops are responding by using tech to improve and transform their in-store experience – which should appeal to the 64%82 of Britons who say that ‘interactive tech to help me choose’ would make physical stores more engaging and desirable.

However, high street retailers face competition from pureplay online rivals, that are also beginning to use bricks and mortar presence as a way of accessing brand awareness and loyalty.In the US, Jones Lang Lasalle has predicted that from pop-ups to a permanent high street presence, pureplay retailers will open 850 physical stores in the next five years.83 This is a trend that is also beginning to manifest itself in the UK.

For example, Missguided now operates two physical stores in London’s Westfield and Kent’s Bluewater shopping centres, while Boden, traditionally a catalogue retailer, opened its first physical store – in Chelsea, London – in late 2017, with further stores opened since.

R E T A I L E R S W I L L B E H O P I N G T OH A V E A S I N G L E V I E W T Y P ES C E N A R I O , I T I S A B S O L U T E L YF U N D A M E N T A L T O O P E R A T EA C R O S S C H A N N E L S . I T W I L L B EE A S I E R F O R C O N S U M E R S T OS A Y ‘ I W A N T T O C L I C K A N DC O L L E C T T H E R E , I W A N T T OR E T U R N I N - S T O R E , I ’ M G O I N GT O G O T O T H E S T O R E A N D P A YO N L I N E ’ , A L L O F T H E S EC O M P O N E N T S W I L L B E M O R ES E A M L E S S . N O W I T ’ S A C A S EO F ‘ H O W C A N W E R E P L I C A T ET H E D I G I T A L E X P E R I E N C E I N - S T O R E ?



B E A U T YP e o p l e w a n t t e c h n o l o g y t o h e l p t h e m n a v i g a t e s h o p p i n g f o r b e a u t y p r o d u c t s

While many beauty consumers still prefer to buy in-store due to the tactile nature of cosmetics products, AR and AI tech can help brands provide the confidence consumers need by virtually advising on beauty products. Many people find shopping for beauty confusing, and the most common way to escape this is by researching heavily online. A study from Automat found that as many as 71%84 of female consumers in the US research beauty products on mobile while shopping in-store. 49%85 agree that they would use a virtual beauty advisor online or offline. Incorporating technological advances into in-store experiences, the Lush Spa on Regent street worked with studio Mill+ to capture the biometric data of spa users while at the spa, and turn them into art. As beauty stores increasingly incorporate technology, innovations such as these seem likely to continue.

H o m eC u s t o m e r s w a n t t o t r y f u r n i t u r e i n t h e i r o w n h o m e v i r t u a l l y , b e f o r e b u y i n g i t

More than half86 of homeowners don’t proceed with a home-improvement project, because they can’t imagine what products will look like in their home. Digital tools can offer solutions to this anxiety and take some of the friction out of purchase decisions. In an attempt to take the hassle out of furniture buying and the inevitable returns, Lowe’s Measured app gives users instant measurements based on images from the device’s camera.

S E C T O R S P O T L I G H TT E C H N O L O G YP e o p l e w a n t o n l i n e r e v i e w s a n d o f f l i n e d e m o s t o f e e l c o n f i d e n t a b o u t t h e i r p u r c h a s e s

When it comes to technological devices and services, consumers want to make sure they understand how it works and, therefore, are more likely to go in-store to chat with a customer assistant. “If I’m buying a technology product, I will research online and read reviews of what people have got to say,” says Anthony, 40, Manchester.“I want something that I’m going to be able to understand. I would also visit the store to actually see it in person and to speak to a salesperson.”

F A S H I O NP e o p l e w a n t f a s h i o n b r a n d s t o u s e t e c h t o o f f e r m o r e c o n v e n i e n c e

“One thing that would be helpful is to use technology in-store. It could be like Argos, which has a stockroom with the iPads in front,” says Jack, 25, London. “Then you can browse a catalogue of different clothing items and have them get out the one you want.” Tapping into this desire, Zara equipped its in-store items with an RFID tag – which enables stores to act as inventory warehouses, so they can become automated click-and-collect points and sources for online delivery.


M e e t j e s s i c a Jessica is 27 years-old and she lives in Birmingham where she loves to shop for new clothes. She prefers to buy clothes in store to try them on so she doesn’t have to go through the hassle of returning items that don’t fit. But she also gets frustrated at the inconvenience of queueing up in store , and wishes there was a way to improve both experiences.

I L I K E S H O P P I N G I N - S T O R E I S B E C A U S EY O U C A N S E E E X A C T L Y W H A T Y O U ’ R EB U Y I N G , A N D I F I T H A S A N Y M A R K S O RB L E M I S H E S . W H E R E A S O N L I N E , Y O U T A K EA R I S K A S Y O U J U S T S E E T H E P I C T U R EA N D T H E N T H E Y S E N D Y O U O N E F R O M T H EW A R E H O U S E . B U T I N - S T O R E A L S O H A S I T S N E G A T I V E S , I R E A L L Y D O N ’ T L I K E H A V I N G T O Q U E U E – I T W O U L D B E E A S I E R I F M O R E P L A C E S O T H E R T H A NS U P E R M A R K E T S O F F E R E D S E L F - C H E C K O U T S .


B r i c k s & P i x e l s I n A c t i o n

People feel more connected to products they can touch

Globally, 27%91 of people say that not being able to try out a product before buying it is the biggest pain-point of shopping online. Research92 shows that when people go into a store not knowing what they want to buy, different sensory factors can influence thechoice they make. When people touch a product, they feel like they own it and subsequently like it more – a phenomenon known as ‘perceived ownership’.

People feel greater connections to brands they can interact with

Academic research93 has demonstrated that allowing people to understand and learn about a brand by interacting with it improves their perception of the brand and can lead to them buying more from that brand at a later date. London-based boutique Browns East offers a peaceful playground of meditation pods and art exhibitions, making a visit to the bricks-and-mortar spot an event in itself whiledemonstrating brand values that will appeal to the 23%94 of UK Gen Yers who say uniqueness is the thing that most draws them to a luxury brand.

People want there to be a human touch at all times

“In the age where everything is done with a one-click purchase, the value of the customer interaction with the brand is really important,” says Tiffanie Darke.

B r i c k s & P i x e l s G e n e r a t i o n a l T r e n d sGen Xers can be enticed to the shops with tech

To drive Gen Xers in-store – it must be a worthwhile experience. According to YouGov, 70%87 of Gen Xers believe that online shopping makes their lives easier and nearly half prefer to buy things online rather than in-store.

However, in-store shopping provides an opportunity to understand their products – 38%of Gen Xers said they would find in-storevisits more exciting if retailers used tech toshow how a product is relevant to their needs.88

Boomers want human interaction at all times

Customer service is key for Boomers – almost half89 say they’ve stopped buying products or services because of bad customer service. So whether they are online or in-store, they want to have access to a real person for advice.

Additionally, 68%90 agree that they like to touch and feel things before purchasing them, so while they’re increasingly adopting technology, experience is still key.

Despite improvements in AI customer-service technologies, shoppers still think real people make for better customer assistance. While 81% of UK shoppers95 prefer human customer-service experiences, 32% blame poor customer experiences on an over-reliance on technology. Some online retailers are tapping into this trend by offering more sophisticated human customer services online – for example, the 24 Sèvres e-commerce venture from LVMH added one-to-one video consultations with Parisian stylists.

Brick and pixel stores & discounts

As the lines between online and offline shopping have blurred, people want an ecommerce experience when shopping offline, and vice versa. And this will apply to discounts too - shoppers will expect to get access to the best deals regardless of where they are shopping. Tapping into this, the ShopSavvy app allows users to scans product barcode to see online and local stores offering deals on that specific product.


T H E S H O P I S T H E P L A C E W H E R E P E O P L E C A N A C T U A L L Y I N T E R A C T W H E T H E R I T I S W I T H T H E M S E L V E S , W I T H T H E E X P E R T S T O R E A S S I S T A N T S , O R T H E P R O D U C T – I T ’ S A B O U T B U I L D I N G T H E B R A N D E X P E R I E N C E .G l y n n d a v i sE d i t o r a n d f o u n d e r o f R e t a i l i n s i d e r



The trends highlighted in this report reflect the dynamic and changing nature of the retail landscape and the challenges it faces due to a combination of economic and technological factors. Customer needs are at the forefront of these factors and in lots of ways show that retailers must do more to ensure they are well positioned to serve today’s shopper – when, where and how they want to be served. Here are our top 3 tips for staying ahead of the curve:

1. Truly own the customer experience

Customers want more, and retailers are adapting to these increasing expectations.

From utilising customer data to enhance personalisation (Data Divas), using technology to streamline the customer journey (Auto-mates) or combining the convenience of shopping online with the experience and tactility of venturing in-store (Brick and Pixels). Ultimately, it is no longer enough to sell customers products anymore; retailers need to give them a positive experience to build a relationship.

2. Enhance transparency

Transparency is essential for a customer to have trust in a brand. It is building customer loyalty and a way of standing out from other retailers in the market.

People want brands to be more transparent about how they use their personal data and how it benefits them. Additionally, when it comes to targeting customers, promotions and advertising are coming under more scrutiny and customers are now seeking authentic sources of recommendation.

Embrace the idea that by being transparent, you are not only building trust but are increasing the number of loyal customers.

3. Embrace innovative technology

Retailers and consumers alike are embracing technology as a tool to enhance customer service and overall convenience. Particularly when it comes to harnessing everyday technologies to streamline the path to purchase and those who can really utilise customer data to enhance personalisation.

Whilst the future of retail remains unpredictable, we expect to see retailers continue to innovate and invest in technology to enhance their offerings. However, customer needs and expectations will be at the forefront of these developments.

If you would like to find out more about retail DNA and how it can be applied to your brand, get in touch at: [email protected]

c o n c l u s i o n



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Business Advice: What online retailers need to know about the shopping habits of Generation X

Global Web Index: Generation X, Audience Report 2018

Global Web Index Blog: The Rise of Green Consumerism: What do Brands Need to Know?

https://www.bdb.co.uk/bdb/baby-boomers-vs-digital-age-going-digital-doesnt-mean-leaving-behind/

https://www.dataiq.co.uk/news/millennial-obsession-testing-loyalty-baby-boomers

Microsoft: State of Global Customer Service Report 2017

The Institute of Customer Service: UK plc Missing out on £27 billion baby boom spend

Staysure: Oldies with Attitude

Canvas8: What’s the Best Thing About Getting Older?

You Gov profiles in Telmar

https://www.newsletter.co.uk/lifestyle/family/baby-boomers-spend-the-most-online-but-gen-x-buy-more-1-7780960

WorldPay: 2018 Consumer Behaviour and Payments Report


Barclaycard: Retailers losing £18bn per year



Accenture: Pulse Check 2018 - Making It Personal

Accenture Insights: Exceed Expectations with Extraordinary Experiences

Accenture: Pulse Check 2018 - Making It Personal

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Source: e-Marketer.com March 2018

Deloitte: Retail Trends 2019 - Retail Re-invented

GFK UK Consumer Confidence Measures – March 2019

CNBC: Consumer Confidence Hit

https://www.drapersonline.com/news/latest-news/brexit-tops-consumer-concerns-for-2019/7034149.article

https://www.thetimes.co.uk/article/households-cut-non-essential-spending-and-stockpile-basics-07856ljxp

Uncertainty Increases the Reliance on Affect in Decisions; Columbia Business School Research Paper No. 16-9

https://techcrunch.com/2018/09/24/snapchat-amazon-visual search/?guccounter=1

https://5g.co.uk/guides/what-is-5g/

The Omnico Retail Gap Barometer 4

Retail ThinkTank: UK retail prospects for 2019: The struggle will intensify regardless of Brexit

https://www.independent.co.uk/news/uk/home-news/bargain-hunting-average-brit-nine-months-life-onepoll-survey-a8069516.html

Foresight Factory: Maximising Behaviour Copy

Competition and Markets Authority: Digital comparison tools market study

GlobalData: Discount retailers to grab a further £9bn of consumer spend by 2022

https://www.telegraph.co.uk/women/life/women-40-50-new-ageless-generation/

Experian: The Formidable 40s: High earning, high spending Generation X are largest contributors to UK economy

https://www.newsletter.co.uk/lifestyle/family/baby-boomers-spend-the-most-online-but-gen-x-buy-more-1-7780960

R E F E R E N C E S


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The Times: Alex Talks us out of going shopping

BDO: Retail Forecasts Report 2019

Internet Retailing: How Changing Consumer Behaviour is Affecting Shopping Habits

Royal Mail: Boom boxes: UK subscription box market to be worth £1 billion by 2022


https://www.theguardian.com/money/2018/apr/17/one-in-three-uk-millennials-will-never-own-a-home-report

http://www.pnas.org/content/114/32/8523.full.pdf

The OC&C: The talking shop - The rise of voice commerce



The Independent: https://www.independent.co.uk/news/business/millennial-online-review-products-research-internet-trusted-recommendations-a8245781.html

https://www.sciencedaily.com/releases/2018/09/180917101312.htm

GOLIN: Influencer Marketing Enters Post-Reach Era

GOLIN: Influencer Marketing Enters Post-Reach Era

Fashion Monitor: Influencer Marketing 2020

Mintel – Consumer Trends, Attitudes, and Spending Habits for the Home (January 2019)

https://smallbusiness.co.uk/brand-loyalty-generation-x-2540506/

B Daily: https://bdaily.co.uk/articles/2018/03/22/half-of-uk-baby-boomers-prepared-to-try-a-brand-they-havent-tried-before-if-it-is-on-promotion-new-research-finds


https://linkfluence.com/mens-fashion-social-media/

DigiDay: Micro Influencers

Fashion Monitor: Influencer Marketing 2020

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EU publications: How does the data protection reform strengthen citizens' rights?

For example, Marriott International and British Airways hacks,

Dentsu Aegis Network Opinion Hub Survey

http://www.netimperative.com/2017/12/uk-consumers-believe-data-worth-254-per-year/


Marketing Week: Data privacy, customer experience & personalisation: 5 killer stats to start your week

The Deloitte Consumer Review: Made to Order: The Rise of Mass Personalisation

https://www.telegraph.co.uk/beauty/face/87-per-cent-women-confused-skincare-products-ultimate-simple/

https://www.fastcompany.com/40513721/heres-how-people-say-google-home-and-alexa-impact-their-lives

Salesforce Research: Trends in Customer Trust

The Deloitte Consumer Review: Made to Order: The Rise of Mass Personalisation

AdWeek: How Much Privacy People Will Give Up for Personalized Experiences

https://www.independent.co.uk/life-style/stress-work-pressures-busy-social-calenders-financial-worries-survey-a8167446.html

Internet Retailing: How changing customer behaviour is affecting shopping habits

OCC Strategy: Partnering to win in retail’s digital age

https://marcommnews.com/a-third-of-uk-consumers-believe-ar-influences-purchasing-according-to-mindshare/

https://londonlovesbusiness.com/artificial-intelligence-on-the-high-street-ai-set-to-streamline-uk-shopping-experience/

https://www.thetimes.co.uk/article/alexa-talks-us-out-of-going-shopping-d8cp6mxgr


The Times: Alex Talks us out of going shopping


Internet Retailing: How Changing Consumer Behaviour is Affecting Shopping Habits


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Bright Local: Local Consumer Review Survey

OSF: Seeing Stars: How the Binary Bias Distorts the Interpretation of Customer Ratings

YouGov profiles in Telmar



AutoMat: Without anyone noticing, virtual beauty advisors (and chatbots) reached a tipping point


http://omstudios.de/omfeed/survey-new-augmented-reality-ar-app-to-measure-your-room-room-visualisation-tool-for-home-decor-brands-and-retailers-digitalbridge/

YouGov Profiles via Telmar


Institute of Customer Service: UK PLC missing out on baby boomer spend


Big Commerce: 2018 Omnichannel Buying Report

Science Daily: https://www.sciencedaily.com/releases/2017/05/170512101322.htmhttps:/www.sciencedaily.com/releases/2017/05/170512101322

https://www.journals.uchicago.edu/doi/abs/10.1086/698330

Deloitte: Bling it on - What makes a millennial spend more?

https://www.thedrum.com/news/2018/12/10/brits-want-service-over-sci-fi-retailers-gekko-study

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