Executive Briefings

Most Customers Will Bolt Retailers Who Can't Fulfill Online Needs, Study Sales

Digital services are now expected as standard by consumers, with retailers needing to adapt or risk their losing business altogether, according to a report from Kibo, a cloud-based omnichannel platform.

The study of 3,000 consumers in the US and UK identified high digital demands and rising expectations as the defining characteristics of today’s retail experience. In a warning to retailers, the research also found that the digitally demanding consumers' loyalty is eroding. More than half of US (54%) and UK (56%) shoppers are willing to jump ship to a rival retailer if their preferred method of delivery isn’t available.

With the pace of our everyday lives speeding up, the patience of digitally demanding consumers is wearing thin. Nearly a quarter of Americans and a third of Brits expect short delivery times (two days or less). Four-in-ten (43%) of US, and more than a third (37%) of UK, consumers would prefer to use in-store pickup (click-and-collect) if the option were available. In addition, nearly one-third (29% in both countries) will not buy from retailers unable to offer in-store pick-up or extended payment options (28% UK; 31% US).

“As the marketplace becomes increasingly crowded, retailers need to remain a step ahead with their digital services and fulfilment options to ensure the loyalty of their customers,” said Kenneth Frank, CEO of Kibo. “Most consumers have their preferred places to shop, yet, retailers’ lack of progression toward offering a true omnichannel experience can erode their customers’ loyalty. As such, the only option left open to many consumers is a move to the closest competitor who will.”

Source: Kibo

The study of 3,000 consumers in the US and UK identified high digital demands and rising expectations as the defining characteristics of today’s retail experience. In a warning to retailers, the research also found that the digitally demanding consumers' loyalty is eroding. More than half of US (54%) and UK (56%) shoppers are willing to jump ship to a rival retailer if their preferred method of delivery isn’t available.

With the pace of our everyday lives speeding up, the patience of digitally demanding consumers is wearing thin. Nearly a quarter of Americans and a third of Brits expect short delivery times (two days or less). Four-in-ten (43%) of US, and more than a third (37%) of UK, consumers would prefer to use in-store pickup (click-and-collect) if the option were available. In addition, nearly one-third (29% in both countries) will not buy from retailers unable to offer in-store pick-up or extended payment options (28% UK; 31% US).

“As the marketplace becomes increasingly crowded, retailers need to remain a step ahead with their digital services and fulfilment options to ensure the loyalty of their customers,” said Kenneth Frank, CEO of Kibo. “Most consumers have their preferred places to shop, yet, retailers’ lack of progression toward offering a true omnichannel experience can erode their customers’ loyalty. As such, the only option left open to many consumers is a move to the closest competitor who will.”

Source: Kibo