value and optimisation in multichannel retailing quantitative research report august 2010
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Value and Optimisation in Multichannel RetailingQuantitative Research Report
August 2010
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Some Background... ACRS strategic realignment away from ‘public’ education to focus on:
1. Customised ‘in-house’ education
2. Customised (proprietary) research
3. Thought leadership research (funded by industry)
a. Single partner research
b. Collaborative industry research The Retail Thought Leadership (RTL) project
o 2009 ‘Retail 2020’: The Future of Retail (Australia, NZ, Asia-Pacific)
CEO Forum with 10 industry leaders from Australia & NZ Multichannel retailing
1. Consumer value perceptions, and
2. Optimisation of the retail channel mix
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RTL 2010 Research Objectives
The questions addressed are:
1. How do consumers value different channels, in terms of their pre-purchase, purchase and after-sales behaviour?
2. How does the configuration of different multichannel offers impact on consumer perceptions of shopping value and satisfaction levels?
3. How can consumers be segmented to reflect their multichannel retail preferences and behaviour?
4. How do generational differences impact value perceptions and satisfaction?
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Does the online channel pay? A comparison of online versus offline information search on physical store spendInternational Journal of Retail & Distribution Management
Research Overview
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Our Research Partners
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Research Approach
Workshop with CEOs & industry
• Agreement on objectives & outputs
• Agreement on design & sample
Research approach
• Method approach
• Design of questionnaire
Pre-testing & fieldwork
• One-on-one testing
• Pre-test online (n=100)
• Online survey of 1,000 consumers
• Validation test with NZ sample
Reporting & presenting
• Analysis of the data
• Presentation series
• Development of report
• Customised ‘in-house’ series
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Retail Categories
Consumer electronics Holiday travel
Clothing & footwear
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Consumer Behaviour Stages
Pre-purchase research
Purchase After-sales
What Consumers Want
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Multichannel Expectations
5.6 5.4 5.4 5.3 5.3 5.05.6 5.4 5.4 5.3 5.3 5.0
5.5 5.3 5.3 5.2 5.2 5.05.6
5.2 5.2 5.1 4.9 5.1
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The ability to return a product/make warranty claims across channels
Consistent customer service across channels
Consistent product pricing and promotional offers across channels
Means to access after-sales service or information
Sufficient information online to make a purchase decision
In-store returns of online purchases
Mea
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Multichannel Features Sample Base: Total Sample = 1,027
Total sample Clothing & footwear Consumer electronics Holiday travel
5.04.7 4.4 4.3 4.3
5.04.7 4.4 4.3 4.3
5.0 4.84.3 4.4 4.4
4.84.4 4.3 4.2 4.0
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The same products available across different channels
The ability to order online and pick up from a store
Receiving feedback about my purchase experience
The ability to earn and take up loyalty offers in any channel
My purchase history can be used to make tailored offers
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Multichannel Features Sample Base: Total Sample = 1,027
Total sample Clothing & footwear Consumer electronics Holiday travel
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Relative Channel Importance: Pre-Purchase
5.1 5.14.8 4.7 4.6
4.3 4.34.0 4.0
3.83.5 3.4 3.4
3.02.8 2.8 2.7 2.7 2.6
2.3 2.2 2.1
5.3 5.24.7 4.8 4.5 4.5 4.3 4.2 4.1 3.9
3.6 3.4 3.43.1
2.7 2.8 2.7 2.7 2.6 2.3 2.2 2.24.8 4.8 4.9 4.4 4.6 4.1 4.2 3.8 3.9 3.7 3.5 3.4 3.4 3.0 2.9 2.7 2.6 2.8 2.6 2.3 2.2 2.2
4.8 4.95.0
4.7 4.7
4.04.1
3.43.7 3.6
3.3 3.33.1
2.72.9
2.62.4 2.4 2.3 2.2
2.0 2.0
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Mea
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Pre-Purchase: Channel Importance Sample Base: Total Sample = 1,027
Total sample Clothing & footwear Consumer electronics Holiday travel
Consumers are online
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Relative Channel Importance: Purchase
5.0 4.8 4.54.1
2.7 2.7 2.6 2.2 2.0 1.92.7
5.0 4.8 4.74.1
2.7 2.6 2.62.2 2.0 1.9
2.8
5.2 4.94.2
3.8
2.7 2.6 2.6 2.4 2.1 2.02.7
5.3 5.04.3 4.1
3.02.4 2.3 1.9 1.9 1.9 2.0
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Mea
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Purchase: Channel Importance Sample Base: Total Sample = 1,027
Total sample Clothing & footwear Consumer electronics Holiday travel
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Relative Channel Importance: After-Sales
4.6 4.5 4.3 4.13.6 3.5 3.3
2.3 2.0 1.9
4.6 4.5 4.3 4.23.6 3.6 3.4
2.3 2.0 1.9
4.7 4.4 4.23.8 3.6
3.1 3.3
2.4 2.2 2.1
4.6 4.5 4.2 4.4
3.4 3.4 3.1
2.0 1.8 1.8
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Mea
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Post-Purchase: Channel Importance Sample Base: Total Sample = 1,027
Total sample Clothing & footwear Consumer electronics Holiday travel
Reactions to Different Multichannel Offers
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The MC OfferStore only Traditional
MultichannelEmerging
Multichannel
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Convenience
Enjoyment
Risk
Sat
Loyalty
Consumer Segmentation
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Segmentation variables
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Macro-Segments Four macro-segments A few interesting comparisons to note...
Loyals Adopters Traditionals Functional
Spend (avg. $) $78.00 $84.00 $93.00 $78.00
Smartphone 20% 22% 16% 27%
Connectedness1 3.5 3.9 2.6 2.2
1 number of retailer communications (emails) an individual is signed up to
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49% of are pro cross- channel shoppers
Store Loyals34%
Channel Adopters
28%
Traditional Multichannel
Shoppers21%
Functional Shoppers
17%
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Macro-segment 1: Store Loyals Rate Store as most important channel across search, purchase &
after-sales Represent 34% market share Relatively low in terms of ‘innovativeness’ High proportion of Baby Boomers across macro-segment 3 micro-segments…
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Macro-segment 2: Channel Adopters Place relatively equal (high) importance on all channels (and higher
than most on emerging) Represent 28% market share Relatively high in terms of ‘shopping enjoyment’ High proportion of Gen Y & Gen X across macro-segment 3 micro-segments…
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Macro-segment 3: Traditional MC Shoppers Place highest importance on store and traditional channels
(catalogue, Internet) Little importance on ‘emerging’ channels Represent 21% market share High proportion of Gen Y & Gen X across macro-segment 2 micro-segments…
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Macro-segment 4: Functional Shoppers Low importance scores across channels Represent 17% market share Low in terms of ‘innovativeness’ and ‘enjoyment’ Spread across generations and skew toward females 2 micro-segments…