Wireless

NationRetail Perspective

EXECUTIVE SUMMARY

Why keeping your shoppers connected pays dividendsNext time you’re walking the shop floor, take a look around and you’ll see them. Head tilted. Thumb poised. Mobile device in hand.

They’re not just doing it in your stores either. Or those of your rivals. They’re at it everywhere. At stations, airports, pubs, cafés and restaurants, all over the land. And chances are, you may even be one of them.

Welcome to the Wireless Nation

The fact is, for a fast-growing number of people in the UK, staying connected when out and about is nothing short of a necessity. Mobile devices are no longer just about talking and texting. The smartphones or tablets that have infiltrated our lives are a way to stay in touch, to be informed, to socialise, to stave off boredom, to work, to find our way around and much more.

Importantly, for retailers, people are using them as a vital shopping companion. Not only as a new way to buy, but a means to research products, to gain a second opinion and to share experiences – good and bad. The desire to be connected isn’t a passing fad. It’s not tied to a generation or demographic. It’s just the way more and more people live – including your customers.

Over half of all shoppers aged under 40 use their mobile device to get a second opinion before buying something

The retail opportunity

Shoppers want to be more connected than ever before. So what happens if they can’t connect when they visit your stores? Our study shows that a startling one in four customers has actually left a business’s premises because they couldn’t connect to the Internet. That’s the bad news. But the good news is that helping shoppers to be connected pays dividends. Here’s what our study found:

Over half enjoy their visit more

31% are more likely to recommend you

1 in 3 will stay longer

46% are more likely to visit again

1 in 5 will spend more

A BETTER EXPERIENCE

MORE BRAND ADVOCACY

INCREASED DWELL TIME

IMPROVED LOYALTY

GREATER REVENUE POTENTIAL

ONE ONE

ONE

ONE

ONE

02 Wireless Nation

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We are a Wireless Nation

Have you recently left home without your mobile device? It’s surprising how unsettling it can feel – that fear of being out of touch, of missing out on something, of not being in the know. For some, it’s almost unbearable to consider.

It’s not enough to have a device to hand either – people want to be able to connect it to the Internet, wherever they are. And an Internet connection is no longer a nice-to-have:

53%of people say it’s ‘critical’ or ‘important’ to be able to connect to the Internet when outside the home or office, rising to 70% of those aged 31-40 years and 59% of people aged 41-50 years.

The UK is truly a Wireless Nation. And it’s changing how we communicate, interact and engage with each other and the retailers that serve us. The new shopping companion in their hand Once, our mobile phones were just that: telephones that allowed us to stay in touch through calls and texts. But today our mobile devices serve a number of different roles. They’re more than simply a means of communication – for most of us, they’re an instant source of information and entertainment too.

How we use our mobile devices:

KEEPING IN TOUCH WITH OTHERS

81%

RELIEVING BOREDOM

56%

GETTING A SECOND OPINION FOR A PURCHASE

37%

GETTING INFORMATION

81%LOCATING THINGS FASTER

59%03 Wireless Nation

Unfortunately, retailers are currently lagging behind other businesses in the availability and quality of the connectivity they’re providing in-store. At what cost? This Wireless Nation study explores the changing attitudes and behaviour of consumers in the UK – to help shine a light on the opportunities and risks to retailers. At a time when more of your shoppers want to be connected than ever before, make sure they can connect with you.

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The implications for retailers are significant. We’re using connected devices as shopping companions – helping us determine where best to spend our time and our hard-earned cash. They’re making us more informed, expectant and discerning than ever before. And they’re making us more selective about where we shop and how we spend our money. Some 37% of shoppers now use their mobile device to get a second opinion before they buy. If your stores target under 40s – take note, that figure rises to more than half of shoppers. Also, it pays to make it easy for people to find your stores and navigate them – some 59% of consumers use their device to locate things faster.

Keeping us loyal is tough. As a Wireless Nation we’re more fickle than ever – and we’re willing to vote with our feet (and our wallets) when brands fall short of our expectations.

Mobile Nation: David is at the shopping centre with his wife Charlotte and their teenage daughter Jess. They’ve been there for a couple of hours and normally David would be desperate to escape and take them home. But there’s good WiFi so he’s happily catching up with the cricket on his smartphone. Jess tries on a dress she’s not sure about, so she shares a photo online to get a second opinion from her best friend Sophie. Meanwhile Charlotte goes online to check out the latest offers from the department store – helping them decide which floor to head to next.

We’re going online everywhere we go

Our desire to be connected wherever we are – including when we’re visiting shops, cafés and restaurants – is on the increase. People of all ages are connecting more often when out and about than a year ago, on every type of business premises.

More

Supermarket Deptartment Store

High Street Café Hotel Rail Station AirportPub/Restaurant

Less

NET

22%

+14% +14% +12% +24% +28% +27% +20% +22%

8% 8%8% 8%9% 7% 7% 7%

22% 21%31% 35% 34% 28% 30%

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While the likes of cafés, restaurants and pubs are seeing the greatest increase in people connecting on their premises, one in every five shoppers – whether visiting a supermarket, department store or high street store – is connecting more often. The offer of free WiFi could soon become as compelling as what’s in your shop window in luring more people into your stores.

Retailers are failing to satisfy our growing connectivity habit

We can’t seem to kick our connectivity habit – but some businesses are helping to feed it more than others. Hotel, cafés pubs and restaurants are leading the way as the environments where people connect ‘every’ or ‘most’ times they visit. These businesses have arguably been faster off the blocks in providing WiFi services to their patrons. In comparison, retailers have been slower to adopt. According to a recent Internet Advertising Bureau mobile retail audit, only 14% of the top 50 retailers have WiFi in-store. That said, roughly 60% of supermarket, department store and high street shoppers are trying to connect to the Internet using their mobile device in-store.

Percent trying to connect to the Internet using a mobile device when in…

Hotel

87%Rail station

69%Airport

73%

Pub/restaurant

81%

High street shop

59%Supermarket

61%Department store

60%

Cafés

82% Travel Social Shopping

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Retailers have a choice. Proactively embrace the mobile movement by enabling their customers to be connected, or quite literally leave customers to their own devices and risk them going elsewhere.

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Sharing Nation: Adam has been tasked with doing the weekly shop. Wandering through the local supermarket, his eye is drawn to a new 3D TV that’s on offer. He wasn’t planning on buying a new TV but the World Cup is fast approaching – and he loves the latest gadgets. Using his phone, he takes a picture of it and shares it on Facebook with the post: ‘Should I, shouldn’t I?’ He then searches online and finds a product review which gives it a good write-up. By the time he’s read it, several of his friends have commented on Facebook and given him a big-thumbs up. Adam buys the 3D TV and a new DVD player to go with it. His phone buzzes, another message flashes up – this time from his wife. It simply reads, ‘Don’t you dare!” Too late, Adam buys a bunch of flowers on his way out in the hope of appeasing her.

We go online…to buy offline

Regardless of the business you’re in, the lines between offline and online on the path to purchase are becoming increasingly blurred.

of people check prices using their mobile device while on a business’s premises

have bought online

research products

want to be able to check stock levels, table or room availability on their mobile

look at product reviews

49% 44% 35%

30% 45%

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Interestingly, older shoppers are using online information to inform offline spending almost as much as younger people. Almost a third of customers aged 61+ have checked prices online. This rises to over half of people under 50.

There’s nowhere to hide. Retailers must take control and optimise their online presence, to meet the needs of the omni-channel customer. Enabling potential customers to check prices, research products and read product reviews while on your premises may seem like a risky strategy. But people are more likely to value having ready access to the information they need to make an informed purchase – with the added convenience to buy there and then, rather than go elsewhere.

Informed Nation: Rachel’s daughter’s wedding is fast approaching and she still hasn’t bought any shoes to wear. She’s been looking online for some time, but doesn’t really want to buy any without trying them on first. Searching online, Rachel learns that a new shoe shop has opened on her local high street, so she heads down there. She finds some shoes she likes, tries them on and they’re a great fit, but wants to check out the price online before purchasing. She finds the shoes, they’re £5 cheaper online but to save the hassle, she thinks it’s just better to buy them there and then.

Staying connected means staying on top of the job

There’s seemingly no escape from the daily workload for some people. While flexible working practices have become more commonplace, it’s sometimes tricky getting the right work/life balance.

CHECK EMAIL

75%USE SOCIAL MEDIA FOR WORK

19%USE VIDEO CALLING

17% USE INSTANT MESSAGING

10%07 Wireless Nation

Working Nation: Max has nipped to a department store to buy his wife a birthday present during his lunch break. Unfortunately, while at the store, a client calls him with an urgent requirement. The email he sent that morning didn’t have the proposal document attached and the submission deadline is fast approaching. Max hasn’t time to return to the office, but by connecting his tablet to the store WiFi network, he can remotely log in to his work email, attach the proposal and send it. On his return to the office that afternoon, with his wife’s present bought, his client calls to thank him and to discuss the proposal further.

We’re a nation of social shoppers

There’s been a lot of talk about social media and the need for brands to listen and engage with customers online.

The fact is 58% of customers have used social media on a business’ premises. That figure rises to 88% of 18-30 year olds. Women are also more likely than men to be liking, sharing and tweeting when they’re visiting your business – with 67% active versus 46% of men.

It certainly ups the ante for retailers, as it’s now critical to deliver a consistently good experience. Happy customers can readily spread the word. But equally, the disgruntled can share poor experiences far and wide.

Enabling and encouraging customers to check in, share and seek the opinions of others online can certainly lead to positive benefits – giving people the social proof and validation they need to make a purchase and building invaluable advocacy for your business.

Social Nation: Beth and Laura are excitedly queuing outside a clothes store. A new clothing range is being launched that’s been designed by one of their favourite models. Once inside the store, Beth takes a selfie holding up one of the dresses in the range – and tweets it. Her excitement is contagious. The pic is rapidly retweeted and favourited. One friend even sends her a direct message asking to buy her one before they all get snapped up.

08 Wireless Nation

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Keeping shoppers connected pays dividends

Our research shows there’s no denying your customers want to be online. But is there a clear and compelling business case to keep them connected?

In short, yes.

If your customers can connect when they’re in your stores, they told us they are more likely to stay longer, spend more, come back and even recommend your business.

With one in five customers saying they’ll spend more, the incremental revenue that could be generated is no doubt significant. Couple that with 46% of people saying they’re more likely to visit again – and we start to see a strong financial argument for providing your customers with the ability to easily get and stay online when visiting your stores. Opportunity knocks.

Fail to connect and you’ll lose out

Shoppers see a good Internet connection as essential. But many premises are still providing a poor experience – and that affects business. More than half of the people in our study said they regularly experience issues trying to connect to the Internet when out of the home or workplace:

Mobile Internet connectivity is not yet consistent. 57% of consumers regularly experience a poor network signal and 39% regularly experience no network signal.

The availability of WiFi services seem to be limited – with 51% of consumers regularly finding there’s no WiFi available and 35% experiencing poor quality WiFi.

The main concern for businesses is that not being able to connect triggers some strong emotions. Many customers say they feel ‘frustrated’ and ‘annoyed’. And it’s evident that these negative emotions colour our attitudes to the business itself. What’s more, when an angry customer uses social media to vent their anger, their voice can be heard much further afield.

If we can’t connect, we’ll walk:

WOULD THINK TWICE ABOUT COMING BACK

WOULD HURRY TO LEAVE AS SOON AS POSSIBLE

WOULD EVEN TELL OTHERS NOT TO GO THERE

In fact, 28% of customers have left a business’s premises because they couldn’t connect to the Internet – rising to 37% of 18-30 year olds.

1 4in 1 4in 7%

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When it comes to connectivity, it’s definitely a two-speed race with some businesses performing better than others. Unfortunately, it’s the retailers that are falling behind:

Hotels, pubs/restaurants, cafes, railway stations and airports were seen as giving a good connection.

Whereas retailers were more likely to be providing a poor connection, with only around 6% of customers believing the connection they get to be excellent.

Customers rating the quality of the Internet connection as ‘poor’ or ‘very poor’:

How people feel if they couldn’t connect on a business’s premises:

Think twice about coming back

27%

Hurry to leave as soon as possible

25%

Enjoy the experience less

31%View the business

negatively

15%

Tell others not to go there

7%

Buy less

12%

Affect the long term company perception Affect the short term customer experience

“Not being connected stresses me out.”

“I felt lost that I could not compare prices or look to see where the best deals were.”

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High street shop

19%Supermarket

24%Department store

22%Tweet this

Demanding Nation: John is looking for a new PC. He’s done his research online and he’s pretty sure he knows what he’s going to buy. He checks out prices and availability and heads out in his lunch hour to a shop where the PC he’s after is reasonably priced and in stock. He checks it out and is really happy with it. But before he spends all this money he wants to remind himself of the spec of another system he’s seen in a different store. He also wants to get his brother’s opinion. To his frustration, there’s no WiFi signal in the shop, and John decides it’s just too big a purchase to go ahead. His lunch hour’s nearly over, so he decides he’ll try again in another store near his home at the weekend.

What do we want? Hassle-free WiFi. When do we want it? Now.

WiFi matters. A lot. It’s now people’s preferred way to get online when they’re visiting your premises. In fact, 75% say free, easy to use WiFi would improve their experience. 71% say making it easier to log in to WiFi would help too.

The message coming from customers is strong. Retailers that don’t currently provide WiFi services should think seriously about offering it or risk losing out to their rivals. And if you already provide WiFi services, carefully consider the experience you’re delivering – and make sure it lives up to expectations.

Here’s what people told us they want from your WiFi:

62% of customers have concerns about the security of WiFi services

48% of customers would prefer to be connected via WiFi provided by your business

Over half of customers are concerned about the cost

45% think it’s a hassle logging in

MAKE IT SECURE

MAKE IT YOUR OWN

MAKE IT FREE (OR LOW COST)

MAKE IT EASY

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To charge or not to charge for WiFi services?

While there’s good news for hoteliers that one in four customers is willing to pay for WiFi, unfortunately for retailers, the vast majority of shoppers expect free access. However, businesses shouldn’t necessarily view WiFi services as a cost, but as an essential part of the experience they provide in-store – especially when customers now place considerable value on being connected.

People willing to pay for WiFi for personal use while visiting:

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High street shop

6%Supermarket

7%Department store

6%

If you’re experimenting with micro-targeting – running geo-targeted campaigns – the good news is that a growing number of customers are eager to be engaged. They believe it will enhance their experience on your premises.

What does this mean for your business?

Enabling connectivity in your stores opens up a wealth of opportunities to engage your customers in new ways and enhance their experience:

• You can run targeted communications to your customers to achieve better engagement and increase revenue for your business

• You can serve video advertising to targeted customers pre-WiFi login

• You can provide branded landing pages and open up new sponsorship opportunities for partner brands

• You can enrich customers’ in-store experience of your mobile apps, including loyalty apps

Engaged Nation: Mike’s car is low on fuel, so he nips into the petrol station at the supermarket to fill up. While he’s queuing up to pay he logs in to the store’s WiFi and sees an offer on his favourite wine. He can’t resist it, so he goes into the main store and grabs a trolley. He checks out the store’s latest offers on the WiFi login page and notices that he can get a free child’s ticket for the local wildlife park – his son’s favourite day out – if he spends over £100. Mike scrolls through the rest of the day’s offers and decides to pick up a joint of beef (20% off) for Sunday lunch, checking online first to remind himself of the ingredients he’ll need for the rest of the meal.

Closing remarks: Connecting with the Wireless Nation in your stores

The message is loud and clear. Shoppers today want to stay connected, wherever they go. Retailers ignore this desire at their peril. If your customers can’t get online in your stores, an increasing number say they’ll go elsewhere. What will that cost your business?

The good news is that enabling your customers to be connected can bring real benefits and give you the edge. When they’re connected, this Wireless Nation will spend more money, keep coming back and recommend your brand to others.

Connectivity also presents endless opportunities to target and engage your customers in new ways – building stronger, longer-lasting relationships.

So at a time when your shoppers want to be more connected than ever – make sure you really connect with them.

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About Arqiva

Arqiva, the communications infrastructure and media services company, operates at the heart of the broadcast, satellite, mobile communications and WiFi markets. Some of the busiest and best loved brands in the UK trust us to deliver seamless WiFi connectivity including Premier Inn, Travelodge, British Airways, Enterprise Inns and almost every airport in the UK. We are experts in the travel, hospitality and retail sectors, with a network spanning over 4,500 public locations including city centres, hotels, restaurants, shopping centres, airports, airline lounges, motorway service stations and other premium, high-footfall sites wireless-nation.arqiva.com/retail

Connect

Interested in learning more about how you can connect more with your customers?Call us to discuss or request a one-to-one briefing for you and your team. Email: wifi@arqiva.comPhone: Emily Almond +44 (0)330 303 2592

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