Digital technology is a rapidly ascending form of customer engagement for loyalty marketers, but the in-store customer experience is now more important than ever, according to the 4th annual Major Purchase Consumer Study released by Synchrony Financial.
Although the study shows that 80% of major purchase shoppers begin with online research, most tend to finish the deal inside of a store.
The in-store experience matters more than ever, evidenced by 73% of respondents conducting research during their visits and 87% of respondents purchasing in person; 64% of all shoppers surveyed said in-store visits had a greater influence on their purchasing decisions than online research.
Even with the increasing influence of digital technology on retail habits, according to the study, the in-store experience is important in all major purchase decisions, with an overwhelming majority of shoppers buying in person. At the same time, shoppers continue to carefully research major purchases of $500 or more, including financing options.
Synchrony Financial’s study explored attitudes about shopping and spending habits, financing, and the path to making major purchases across 13 categories: appliances; automotive service, tires and products; electronics; eyewear; fine jewelry; flooring; home improvement; furnishings; bedding and mattresses; lawn and garden; musical instruments; sewing; and sports and fitness equipment.
More than 3,400 Synchrony Bank card holders and random shoppers who had made a purchase of $500 or more in the past six months, or planned to make such a purchase, participated in the survey conducted in May 2015 by global market research company Rothstein Tauber.
Here are some key findings:
The major purchase journey is getting shorter, with shoppers spending an average of 68 days researching a product (down from 80 in 2014).
Digital tools continue to be an important part of the research process, empowering shoppers to navigate information and narrow options. Online purchasing of larger ticket items remained stable at 13% year-over-year, with the exception of consumer electronics.
Financing continues to play a critical role in the major purchase process, with 75% of Synchrony cardholders surveyed saying they “always” seek promotional financing when making a purchase, and 89% indicating promotional financing makes larger purchases more affordable.
Results show that shoppers enjoy the immediacy and interaction of in-store purchases. Shopping in-store allows them to take the product home on the same day, see and feel the product, and interact with a store associate. Some respondents noted they simply like to shop at the retailer.
“These insights are a valuable reminder for retailers of the importance of the in-store experience as part of a true omni-channel strategy,” said Toni White, chief marketing officer, Synchrony Financial. “Providing an integrated and consistent experience across all channels bridges shoppers from online sources of information to visit a physical store, validate their choices, and ultimately purchase.”
Shoppers continue to carefully conduct research via a number of channels prior to making their major purchase. Steps in their path-to-purchase include product research online and off such as store visits, consulting friends and family, exploring offers and financing, and checking online reviews. Consumers who purchase online are driven by value and availability and said they liked the ease and convenience, found better deals on the web, or bought items not stocked in the store.