IBM Global Business Services IBM Institute for Business Value Understanding consumer patterns and pre 5erences in multi-channel retailing In our survey, participants were asked to select the product category they had used most recently, and describe their pre/erences and behavior /or that shopping experience. Respondents came /rom the U.S. and the UK, and represented a wide distribution o/ demographics (gender, age, /amily status) comprising equal numbers o/ men and women.
Their mean income was slightly above that o/ the national averages 3 capturing insights /rom an attractive segment o/ retail customers. Some key fndings In the U.S. and the UK, Consumer " Electronics is the product category most o/ten chosen by multi-channel shoppers, /ollowed by Apparel/ Accessories & Footwear, and Home Improvement/DIY & Appliances.
pre/er the combination o/ cOnline to Store, d /ollowed by cStore to Online d (7+ percent) and cOnline to Call Center d (3+ percent) /or all product categories. The age group that has the highest " percentage o/ /requent multi-channel shoppers (defned as once a month or more) in the U.S. is 18-24 years; those in the UK are slightly older 3 25-34 years.
A signifcant number (46-50 percent) " o/ shoppers in the U.S. and the UK switch ... more. less.
retailers when they move among shopping channels. Not surprisingly, price is their primary motivator, /ollowed by convenience and product availability.<br><br> Today, browsing, comparing and purchasing retail merchandise is a multi- channel proposition for retailers and consumers. Our survey of nearly 4,300 consumers in the U.S. and the UK answers many questions retailers need to consider when evaluating multi-channel initiatives: cWhat channel combinations do shoppers prefer?<br><br> Why do shoppers switch channels and retailers across channels? What functions and features do consumers expect when shopping across channels? What can retailers learn from seasoned multi-channel shoppers?<br><br> How do consumers 9 multi-channel priorities and patterns change by product category, customer demographics and shopping frequency? d Source: IBM Institute for Business Value. U.S. and UK 3 total respondents.<br><br> Retail 1600 1400 1200 1000 800 600 400 200 0 Consumer Electronics Apparel/ Accessories & Footwear Home Improvement/ DIY & Appliances Pharma/ OTC & HBA Sporting Goods Groceries Home Decor United Kingdom United States 1087 414 629 205 490 259 215 67 178 66 155 100 146 31 The top multi-channel combinations " are nearly the same /or the U.S. and the UK. The vast majority (over 75 percent) o/ multi-channel shoppers How consumers are flling their baskets When looking at total basket size and additional impulse purchases, we see some noteworthy trends that vary by channel.<br><br> We discovered that: Based on average basket size, multi- " channel consumers in the U.S. spend the most money shopping between cOnline to Call Center, d while multi- channel consumers in the UK spend more money shopping between cOnline to Mobile. d While Consumer Electronics and Home Improvement/DIY & Appliances in the U.S. and the UK show the largest basket size: In the U.S., Apparel/Accessories " & Footwear and Grocery have the greatest percentage o/ impulse purchases per basket.<br><br> The greatest percentage o/ impulse shoppers is in Grocery and Pharma/OTC & HBA. In the UK, Grocery has the highest " percentage o/ impulse purchases per basket, as well as the largest percentage o/ impulse shoppers. Why shoppers change channels The top reasons consumers change channels and retailers vary by product, channel and demographic.<br><br> For example, in the Consumer Electronics category, we discovered that shoppers who move /rom cOnline to Store d do so /or reasons relating to: Store experience, convenience " and assortment (in the U.S.); store experience, convenience and price (in the UK) Product availability, convenience " and promotions /or the most /requent cOnline to Store d shoppers (once a month or more) in both countries Product availability, convenience " and promotions (/or teens and young adults in both the U.S. and the UK). Getting there 5rom here This executive summary highlights just basic fndings /rom our survey.<br><br> The insights revealed in the /ull study can help retailers better understand consumers 9 pre/erences and the required /eatures o/ multi-channel shopping 3 enabling organizations to develop strategies that align and evolve with customers 9 needs over time. GBE03092-USEN-01 To fnd out more about the (ull survey, e-mail us at firstname.lastname@example.org or contact one o( our IBM experts listed below. How can IBM help?<br><br> " Strategy and Change - Helps to address changing customer buying behaviors, organizational structure and metrics, and customer-centric processes. " Retail Industry Solutions - Solutions to address multi-channel retailing, including Next Generation e-Commerce, Mobile Commerce, Contact Center, Endless Aisle, Single View o c Customer, Product In cormation and Attribute Management, Enterprise Content Management, Supply Chain Planning and Execution, and Multi-Channel Order Management and Fulfllment. " IBM Products 3 Innovative and market-leading products to support the retail industry, including WebSphere® Commerce, In coSphere" MDM Server, In coSphere MDM Server cor PIM, In cormation Server, OmniFind" Discovery, Content Manager, WebSphere Message Broker, Anyplace Kiosk, IBM Servers and IBM Total Storage® products.<br><br> Key contacts: Global: Craig W. Stevenson, email@example.com Americas: Greg Tolman, firstname.lastname@example.org Northern Europe: Don Shields, email@example.com Southern Europe: Stephane Dubois, firstname.lastname@example.org Japan: Akiko Itoh, email@example.com Asia Pacifc: Susan De Jonge, firstname.lastname@example.org © Copyright IBM Corporation 2008 IBM Global Services Route 100 Somers, NY 10589 U.S.A. Produced in the United States o/ America September 2008 All Rights Reserved IBM, the IBM logo, ibm.com, WebSphere Commerce, In/oSphere, OmniFind and TotalStorage are trademarks or registered trademarks o/ International Business Machines Corporation in the United States, other countries, or both.<br><br> I/ these and other IBM trademarked terms are marked on their /irst occurrence in this in/ormation with a trademark symbol (® or "), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this in/ormation was published. 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