Christine Persaud - marketnews.ca
According to a recent study conducted by IBM, Canadian shoppers tend to be more loyal to our primary retailers than people in other countries. What's more, we also expect personalized promotions, and desire that retailers reach out to us through means like social media.
In all five countries that IBM surveyed, it is evident that consumers are getting more tech-savvy, and are using technology more to help make informed buying decisions. But they're also using technology to exchange information with peers about purchases, to actually make purchases, and to shop quickly across multiple channels.
More specifically, 84% of Canadian consumers are Websites to access and print coupons; 75% use mobile phones to locate the nearest store; and 72% want to see what products are in stock before visiting a store, presumably checking out a retailer's Website in order to do so. Forty-eight per cent will buy via Website, 31% via in-store kiosk, 9% through a TV (51% using the TV's remote), and 4% by mobile phone (43% via SMS).
In terms of social networking, 43% said they would "follow" a favourite retailer on a site like Facebook or Twitter. Those between the ages of 15 and 30 are key influencers, and most likely to adopt social media as a means to communicate with a retailer.
The survey found that Canadian consumers are so involved in the retail experience that 69% of them said they would actually be willing to work with retailers to design new products, and provide suggestions on services that would better meet their shopping needs.
When it comes to jumping ship to another retailer due to better prices, product selection, or customer loyalty, Canadians ranked fifth on the list, behind China, India, Brazil, and the U.K. Shoppers in the U.S. are least likely to switch retailers for the aforementioned reasons.
John Dawkins, Canadian Retail Sector Lead at IBM, says all of these signs point to a desire for more personalized campaigns and shopping experiences. Thus, he advises that retailers adopt more sophisticated analytics that study trends at both the household and individual level in order to better serve customers.
"The reality is most retailers have built a product-centric approach and have challenges when it comes to integrating constantly changing customer profiles though multiple touch points like call centres, kiosks, point of sale, employee interaction, and immobile," he explains. "In addition, new methods for integrating social media tracking and input are required to manage retailers' brand experience."
Where can retailers improve most? According to shoppers surveyed, it's in delivering customer promotions and access to knowledgeable sales staff. More than half (54%) of respondents said they would spend more time with a retailer if they got these two areas right.
"Retailers must constantly search for new and innovative ways to reach their customers and meet their demands," adds Diane J. Brisebois, President and CEO, Retail Council of Canada. "Building and maintaining customer loyalty is critical in the highly competitive retail market. Incorporating new technologies that enhance a customer's shopping experience go a long way toward solidifying brand loyalty and increasing sales."