While some might say that the rise of digital has made the role of the local retail store obsolete, new research from Google conducted with Ipsos Media CT and Sterling Brands suggests that the relationship between digital and in-store shopping is far more nuanced and interconnected than that. In gaining an understanding of the impact of digital on in-store shopping, we were able to debunk three common retail myths. We also identified ways retailers can use digital more effectively to connect with consumers. With two in three consumers not finding the information they need in-store and 43% then leaving frustrated, digital presents an opportunity for retailers to improve the in-store shopping experience.
The retail industry is undergoing a dramatic shift: In-store foot traffic is down, online research is up and smartphones are becoming increasingly important to the consumer’s in-store shopping journey.
To better understand the impact of smartphones and online information on in-store shopping, Google partnered with Ipsos MediaCT and Sterling Brands for an online survey. The study reveals that consumers want more information and customized experiences during their shopping journey: Two in three shoppers who tried to find information within a store say they didn’t find what they needed, and 43% of them left frustrated. And 71% of in-store shoppers who use smartphones for online research say their device has become more important to their in-store experience.
Retailers can make use of these insights to connect and engage with people. From providing consumers with local information online before they go to stores to customizing their experiences once they’re in-store, digital presents new opportunities for retailers to connect.
Here we debunk three common myths associated with the impact of digital on in-store shopping. We’ll also highlight how consumers’ digital behavior affects—and in fact, helps—retail stores today.
Myth #1: Search results only send consumers to e-commerce sites.
A common myth is that as a result of searching online, shoppers will only visit e-commerce sites. In reality, three out of four shoppers who find local information in search results helpful are more likely to visit stores.
Shoppers are actually inspired to visit after successfully finding out information such as the in-store availability of an item, store location and hours or pricing at a nearby retail location. But when that information isn’t available, shoppers may stay away; one in four shoppers say they’ll steer clear of a nearby store altogether to avoid the risk of items not being available.
Myth #2: Once in-store consumers start looking at their smartphone, the retailer loses their attention.
Digital is transforming the in-store experience for customers. Our study shows that 42% of in-store shoppers search for information online while in-store. For the most part, they’re using search engines (64%). However, almost half of shoppers head to the retailer’s own site or app. Only 30% will look up details from a different retailer’s web site or app. This presents a powerful opportunity for retailers to connect with consumers—and prevent them from turning to the competition.
Myth #3: Online research has lowered consumers’ expectations of stores; they really just go to a store to transact.
Some retailers fear that today’s consumers are so well informed before they step into a store that the shop itself has become nothing but a playground for a quick transaction. In fact, people are visiting stores throughout their purchase journey—even before making a purchase. Thirty-two percent of shoppers visit stores when they’re first thinking about a purchase, and 33% actively research in stores to find out more about a potential purchase.
Retail brands have the opportunity to impress and engage their savvy shoppers in new ways. People want to feel that the retailer understands them, and customization is a way to accomplish that. Shoppers want stores to provide experiences tailored just for them; 85% say they’d be more likely to shop in places that offer personalized coupons and exclusive offers in-store.
For example, retailers could offer deals that shoppers can use at a nearby location (30% off today only at a store near you!). In addition, they can provide shoppers with promotions for related items as well as alternative fulfillment options, such as free home delivery, should the product they’re interested in not be in stock. Shoppers are looking to retailers for their expertise, and that includes product recommendations. In fact, consumers are more likely to shop in stores that provide specific recommendations (64%) and let them know what friends and family have purchased (54%).
The consumer path to purchase is becoming increasingly mobile. Retailers that provide relevant, local information via search and online presence (mobile app and site) will increase both reach and engagement. While helping to drive shoppers in-store, such information will also improve customers’ experience once there. And customized offers and recommendations will help retailers further distinguish themselves. Digital has fundamentally reshaped the shopping journey—in a good way—and savvy retailers who make use of it to attract and engage consumers will find themselves ahead of the competition.
Google, Ipsos MediaCT and Sterling Brands research study from March to May 2014
