The Divide Between Retail Digital Customer Experience and What Consumers Desire

Consider that digital interactions influence 56 cents of every dollar spent in retail stores, totaling $2.1 trillion by the end of the year, which is up from 14 cents of every dollar spent in 2013, according to Deloitte’s latest study, “The New Digital Divide: The Future of Digital Influence in Retail.”

Deloitte’s fourth annual study explores the growing gap between the digital experiences that brick-and-mortar retailers deliver to customers and the experiences their customers actually desire.

What’s more, the study revealed new insights around consumer behaviors that present opportunities for brick-and-mortars to regain their footing in an increasingly fragmented digital marketplace:

Digital do-it-yourself (D-I-Y) is a no win for retailers
Despite the pervasiveness of digital influences, the study notes, “the ability of retailers to influence the purchase journey is decreasing.” Digital platforms such as Facebook and Google are already hosting real-time interactions with customers for several hours each day. As a result, they are shaping and redefining the customer’s definition of a great experience through constant real-time connection.

“Any retailer who thinks they can build their own personalized experience to interact with customers anywhere near the extent of major digital platforms and find success may be disappointed with their results,” said Jeff Simpson, principal, Deloitte Consulting LLP and co-author of the study. “Their limited interaction with customers – about six to eight transactions per year – limits their understanding of the ‘moments that matter’ in a personalized experience such as purchase intent and preference. Instead, retailers should more aggressively embrace integration and the native capabilities of the major digital platforms where their customers have already chosen to interact and transact.”

“Millennial” is now a “mindset”" – not just a demographic
According to the study, more than three-quarters (78% of non-millennials are now using digital devices either two or three times throughout their shopping trip. Mobile device usage is no longer as heavily skewed toward millennials. Data shows that the age gap is shrinking as now – across all age groups – customers are turning to their mobile devices before and during the shopping journey.

Consumer control over interactions with retailers could spell trouble for traditional advertising
According to the study, two-thirds (66%) of consumers now prefer a self-directed shopping journey, up from nearly one-third (30%) in 2014. The study also revealed the diminishing influence of advertisers. Specifically, two years ago 70% of surveyed consumers said they responded to advertising compared to nearly 30% in this year’s study.

The survey also showed a marked increase in customers' willingness to share data with almost half (48%) of shoppers and 58% of millennials willing to share data in return for personalized service. For example, more consumers are starting to share their location and personal details to acquire better service and perks from a store or to receive more personalized emails with recommendations and suggestions to blogs.

“The majority of consumers’ preferred method of locating, buying and receiving product in-store has been redefined by their online experiences,” added Simpson. “This proves the store has more influence over online purchases than retailers may think.”

This survey was commissioned by Deloitte and conducted online by an independent research company April 25–May 5, 2016. The survey polled a national sample of 5,014 random consumers. 

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