Driving Shopper Engagement Through Digital Technology

Consumer habits are changing. They’re becoming omnichannel shoppers, using any and all digital resources available to shop and purchase in and out of the store. This shift can cause operational challenges for some retailers, as customers seek a frictionless shopping and payment experience. There is an upside, however, as many omnichannel shoppers can become engaged, loyal and profitable. Retail brands that provide a flawless digital experience can differentiate themselves in this area and realize great benefits.

Examine omnichannel shoppers current behaviors and attitudes to satisfy their needs. Synchrony Financial’s third annual Mobile Shopper Study gathered insights on how consumers use mobile technology while shopping. The study surveyed 1,109 respondents in the United States, who were 18 or older, participate in household financial decisions, and shopped with a major U.S. retailer in the last six months. The data has been weighted to U.S. census proportions.

Five key insights emerged from the study. I explore these insights and provide strategies to help retailers make the most of these attitudes and behaviors.

1. Shopping and related activities are one of the top uses of digital technology. Fifty-three percent of survey respondents say they’ve visited a retailer’s website on their mobile phone within the past three months alone, and 45 percent have performed shopping-related tasks on their mobile phone. This behavior has steadily increased year over year.

This indicates that retailers should invest in tools to engage consumers who are shopping using digital technology. Some of the tools to consider include the following:

• Responsive design: Design your website so the experience is optimized no matter which device your customer is using.
• Enhanced wish lists: Create opportunities to cross-sell merchandise.
• Drag-and-drop features: Enable shoppers to compare items, add complementary products.
• Custom alerts: Enable shoppers to get alerts on products when they become available or go on sale.

The more seamless and customized the technology, the easier it is for shoppers to prefer one retailer over another. In this highly competitive retail arena, a little digital delight goes a long way.

2. Special offers and coupons can be extremely effective, but interest in them is declining. Consumers don’t seem to have the same focus on chasing offers and discounts as in years past, but they are still spending cautiously and often look for a “reason to buy.” With 66 percent of survey respondents saying they take advantage of discounts, capitalize on the fact that special offers and coupons still drive behavior.

Percentage of survey respondents who say they regularly take advantage of discounts and coupons

Some tools and strategies retailers can use to address this trend include the following:

• Offer immediate, personalized offers. Link your loyalty program with a customer’s online behavior. For example, if they’ve earned a coupon, make it immediately accessible, no matter which channel they’re using.
• Simplify the offer. Make it easy for the customer to take advantage of a coupon or special offer; don’t make them work hard.
• Use free shipping to drive behavior. Seventy-five percent of the survey respondents said they’re more likely to purchase from a retailer offering free shipping.

3. Consumers use their mobile phones in-store. The good news is that mobile offers do drive behavior for a segment of the population. Consider the following:

• 51 percent of respondents said they would be willing to send a text message in order to receive a discount;
• 34 percent said they would shop at a retailer more if they received offers on their mobile device; and
• a third of respondents say they regularly use their mobile phone to check prices before making a purchase.

To take advantage of these opportunities — and to address the challenges digital technology presents — retailers can use certain strategies:

• Find the segment of your customer base that would like to receive offers via mobile and appropriately use this channel to communicate.
• Make the in-store shopping experience truly “omni” by integrating digital technology — e.g., access wish lists, online baskets in-store, free shipping.
• Encourage reviews and social media postings. Customers who post a review give the retailer an opportunity to re-engage them.

4. Social media drives sales, particularly for millennials. Eighty-five percent of respondents say they have access to social media sites, and almost half use them to follow brands. More importantly for retailers, 30 percent of all age groups say they have purchased a product after seeing it on social media. There are wide differences by generation, however. Millennials are highly influenced by social media, with over 50 percent saying social media has impacted their purchase decisions. This trend is growing significantly for younger populations, as seen in the chart below.

Percent who say they have purchased a product they saw on social media

Retailers should implement social media strategies that are closely tied to their brand identity and provide content that’s helpful, not just a sales pitch. There are also influencers and bloggers that are helpful in spreading your brand’s message. Many successful brands have social media strategies to connect with customers on an emotional level.

5. Retail credit card holders are more “digital” than other shoppers. A digital strategy is particularly important for retailers that have many customers who use their retail branded store credit card. These customers are more likely to have digital devices (85 percent vs. 69 percent of the general survey population). Retailers should ensure the cardholder experience is fully mobile-enabled with the latest tools and apps. From applying for cards to accessing their accounts and loyalty programs, omnichannel shoppers want it all.

It’s hard to overstate the impact that digital technology has on retail habits and behavior. From full price transparency to mobile alerts and social sharing, the retail environment has gone through a seismic shift in the past several years. Brands that are responsive and forward looking can delight their customers in this new dynamic environment.

Sue Yasav is a marketing intelligence leader at Synchrony Financial, a retail financial business that specializes in handling store credit cards.