Consumers` enthusiasm for online shopping is not matched by their actual behavior – study

Monday 26 January 2015 07:34 CET | News

While consumers are growing more enthusiastic about online shopping and digital interaction with retailers, their actual behavior lags behind.

These are the findings of the IBM Institute for Business Value study released by IBM, indicating that consumer expectations are not being met, which leaves clear opportunities for retailers to close the gap and create new loyalty.

The IBM Institute for Business Value study found that consumers are currently very comfortable with combining digital and physical elements in their buying process. However, while IBM’s study found that 43% of consumers said they prefer to shop online, only 29% actually made their last purchase online. In some product categories such as youth apparel or home décor, there is a nearly 20 point gap between the percentage of people that say they enjoy shopping online and the percentage of people who actually made their last purchase online in those categories. This signals that retailers have an opportunity to better meet consumer expectations online.

Similarly, while more consumers are willing to share social, location and mobile information with a trusted retailer compared to 2014, the study shows that sharing could be much higher. 42% of consumers see the potential benefit of sharing their location via GPS with retailers, but only 28% are willing to do so -- even with a trusted retailer. 54% of consumers see the benefit of sharing mobile for text with retailers, but only 42% would actually share this information.

A growing number of consumers said it’s important that retailers offer personalized promotions, particularly if they are presented on demand. 48% of shoppers value initiating a personalised communication with a retailer when they are online. When in the store, 44% of shoppers want on-demand communication. 41% of consumers said it’s important that store associates offer personalised promotions based on their purchase history or preferences, compared to 36% in 2014.

The IBM Institute for Business Value study analyzed four years of survey data from over 110,000 consumers in 19 countries.

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Keywords: online shopping, retailer, digital interaction, IBM
Categories: Payments & Commerce
Countries: World
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