••• shopper insights
Apocalypse? No.
Shifting retail landscape isn’t all doom and gloom
The 2018 Global Consumer Survey, conducted by software firms JDA Software Inc. and Centiro, finds that today’s retail environment is more complex than ever and retailers across the globe are struggling with demands for both personalization and convenience, balanced with consumer skepticism on data privacy.
The study, which explored consumer trends in key markets, found that shopping in-store remains the most popular experience overall (preferred by 38 percent), although online options were preferred in some of the surveyed countries, such as China, where online shopping via mobile/tablet (34 percent) was the preferred option. Regarding in-store shopping, global respondents said that having the right product in stock is the most important aspect of their shopping experience (34 percent), followed by having a variety of products to choose from (29 percent).
Regardless of where transactions ultimately occur, according to the survey, online is the first stop on the shopper journey for clothes (46 percent), home goods (48 percent) and electronics (63 percent). Younger consumers (ages 18-34) are more likely than average to begin their shopping journeys for each of the categories with recommendations from friends or family; the proportion of those who start their purchase journeys with input from friends or family decreases among older consumers.
“This notion that stores are dying or there is a ‘retail apocalypse’ is exaggerated. Instead, this is a time for a retail rebirth,” says Lee Gill, group vice president, global retail strategy, JDA. “While the industry may refer to it as ‘omnichannel’ retailing, consumers across the globe no longer strongly distinguish between online and in-store channels. All retailers are struggling with balancing the personalization traditionally offered through e-commerce shopping with the convenience of an in-store experience. We see this time and again as more e-commerce retailers are opening brick-and-mortar shops and traditional retailers are looking to strengthen their digital and direct-to-home fulfillment.”
According to the global survey, 40 percent of respondents have used voice-controlled devices or services for some aspect of their shopping journey (Siri, Alexa, Google Home, Tmall Genie, etc.), with 23 percent of those using them to make purchases.
While global consumers continue to embrace new technology for both research and transactions, they are somewhat hesitant about how their personal data is being used. Overall, 75 percent of respondents said they’re concerned about their online and in-store shopping history, such as transaction history and online searches, being used to provide better, more-personalized service.
“While consumers are looking for personalization from retailers in theory, there are still concerns about how their data is being used for the execution,” says Gill. “Both consumers and retailers are trying out emerging technologies to determine what will work to provide the increased level of personalization, while staying within consumers’ current comfort level.”
Globally, the majority of respondents who shop in physical retail stores have used some form of emerging technology while shopping, whether it’s mobile coupons or discounts (49 percent) or individual recognition and personalized service based on loyalty programs (26 percent). However, U.K. consumers who shop in-store were least likely to have tried new technology in their shopper journey, with 70 percent of U.K. respondents claiming they have not used any emerging technology in stores, while over 90 percent of Chinese in-store shoppers said they have used emerging technology in-store.
When asked about the potential of augmented reality (AR), 60 percent of global respondents said they would be more likely to make a purchase if they could use AR to preview products. However, China continues to be more progressive when it comes to advances in retail technology for consumer experience. Ninety percent of Chinese respondents said they would be more likely to purchase items based on AR, as compared to only 32 percent of U.K. respondents.
The convenience factor of returning items to the store continues to be the primary driver for consumers. Forty-nine percent of global respondents have used a buy online return in-store (BORIS) service, with half (50 percent) saying they’ve returned items bought online to stores because it was easier or faster or because they would get a refund or store credit faster than by mail. Thirty-six percent of those who have used BORIS in the past 12 months chose this option because the item purchased online was not what they expected, while 27 percent said that they bought multiple sizes or options for convenience and returned what they didn’t want or need.
“The volume of returns is increasing for a variety of reasons. As well as customers ordering multiple sizes, more than a third said they returned items in-store in the past 12 months because an item they purchased online was not what they expected,” says Gill. “This reverse logistics trend continues to cause problems for retailers, who are seeing repeat, serial returners. However, tangible rewards come from a good returns process: The survey showed that 71 percent of respondents claimed that they frequently or sometimes buy additional items when returning things to stores, meaning returns can actually provide an opportunity to secure a sale by offering alternative items.”
However, the ease of returns doesn’t just apply to retailers that offer brick-and-mortar return services. According to the survey, 81 percent of those who shop for products online said that following a poor returns service from an online retailer, they were likely to switch to a different vendor for future purchases.
“We’ve now reached the point where people would choose a retailer based on the quality of delivery and returns it offers,” says Niklas Hedin, CEO of Centiro. “Almost nine in 10 [87 percent] of those in the U.S. or EMEA who shop for products online said the ability to track orders from checkout to front door would influence who they would shop with. Retailers need to keep pace with evolving consumer habits and provide greater delivery transparency to shoppers, otherwise they risk losing future customers.”
Sixty-nine percent of those who shop for products online have used a buy online pick up in-store (BOPIS) option. Respondents used BOPIS in the last 12 months to avoid home delivery charges (42 percent), get the product sooner than it would be shipped (36 percent) and for added convenience over home delivery (33 percent). In addition, 66 percent of those who used a BOPIS service said they either frequently or sometimes make additional purchases while picking up items in-store, underscoring an opportunity for add-on sales.
This global survey was conducted by Opinium, a strategic insight agency, between late May to early June 2018. The findings are based on 12,000 online interviews with respondents in Asia (2,000 in China, 1,000 in India), Europe (2,000 in the U.K., 1,000 in France, 1,000 in Germany, 1,000 in Italy, 1,000 in Sweden), North America (2,000 in the U.S.) and Oceania (500 in Australia and 500 in New Zealand).
••• alcoholic beverages
Report segments U.S. wine consumers
Contented Treaters and Senior Bargain Hunters
In a Forbes article, Thomas Pellechia reported on findings from Wine Intelligence, an international team of wine industry analysts, communications experts and consultants, and its US Portraits 2018, in which it explores the U.S. wine market and it primary segments.
US Portraits 2018 claims that, at 84 million regular wine drinkers, the U.S. wine market is the “most populous wine market” on the planet. When the 2016 US Portrait was released, the U.S. was the largest wine market then too and while the report listed six segments of the wine-buying public, their habits were different from the six segments today. Back then, they were: Experienced Explorers; Millennial Treaters; Premium Brand Suburbans; Bargain Hunters; Senior Sippers. Today, the six segments break are: Engaged Explorers; Premium Brand Suburbans; Contented Treaters; Social Newbies; Senior Bargain Hunters; Kitchen Casuals.
At 10 percent of wine consumers, Engaged Explorers are identified as the younger population of wine buyers. These are the most frequent buyers and they spend the most on high-priced wines than any in the list of six. They are called explorers because they drink many wine styles, from many countries and regions.
At 19 percent of wine consumers, Premium Brand Suburbans are middle to older age. They spend much less on a bottle of wine than most wine consumers and they are hardwired into staying with wines and brands they know. Members in this group happen to know more about wine than any of the five other segments.
Contented Treaters make up 17 percent of wine buyers. Like the Suburbans, this segment comprises middle- to older-aged but this group is affluent. They spend up but they also don’t consume nearly as much wine as their counterparts. They go for a broad range of wines and are interested in a wine’s origin.
The youngest segment, Social Newbies, accounts for 14 percent of wine buyers. On average, members of this group consume wine twice a week. Their spending is right in the middle between high and low spenders. Their wine knowledge is limited so they rely on recommendations, which means they can be a fickle market.
At 26 percent the Senior Bargain Hunters are the largest segment of the U.S. wine-buying public. They are among the oldest of buyers and their buying frequency is at the bottom of the six segments. While members in this group are quite knowledgeable, their focus on wine styles and brands is narrow; value is important to them.
Kitchen Casuals are also among the oldest group of buyers. This segment represents 14 percent of the buying market and includes largely infrequent wine drinkers. They are not known for going to bars and restaurants to consume wine and they show a limited interest in switching from wines they already know.
Quantitative data for US Portrait 2018 was collected online in October 2017, January 2018 and March 2018 from 12,632 (49 percent male/51 percent female) people who consume wine at least once a month on and off premise. Nine U.S. regions were represented in the survey. A focus group sampling of 20 interviews were conducted by phone.
••• employment research
One foot out the door
How are job seekers finding their next gig?
In the words of Steve Jobs, “If you haven’t found it yet, keep looking.” This mind-set is echoed in data from Denver digital marketing firm Adtaxi, which sheds light on the tendency of today’s job seekers to play a game of musical ‘job’ chairs. The in-depth assessment of job seekers’ goals, habits and preferences revealed that a majority (52 percent) of employed Americans are either currently looking or plan to look for a new job in the next year. Of the individuals planning to look for a job within the year, 54 percent searched for their last job less than a year ago.
“While it is often debated whether ‘job hopping’ is beneficial or detrimental, the fact of the matter is that this practice is on the rise,” says Chris Loretto, EVP of Adtaxi. “Thanks to search engines, online job boards and social media, looking for a new opportunity is simpler than ever before – after all, information on any given company is only a click away. This makes it easier to routinely switch jobs and gives rise to the passive job seeker: an employed individual that is open to learning about new career options but does not actively apply to specific positions.”
Among the study’s additional findings:
Most job seekers browse online: 61 percent of those planning to search for a job within the next year will conduct an Internet search, while 59 percent will turn to a job board Web site. The most popular site? Indeed, which all 59 percent plan to use.
But networking remains important: Even in the digital age, it’s about who you know – 41 percent of those planning to search for a job within the next year will network and communicate via word of mouth, beating out the 39 percent who will browse LinkedIn.
Many job seekers are industry-hopping: More than a third (35 percent) of those planning to search for a job within the next year say they will look outside of the industry they are currently working in.
The results underscore a number of considerations for recruitment marketers:
Consider commuting preferences when geo-targeting job seekers and promoting listings. Nearly half (49 percent) of those planning to search for a job within the next year are willing to relocate out of state for a new position – but when it comes to commuting, the shorter, the better: 58 percent of job seekers are not willing to commute more than 30 minutes.
Hit on key messaging points in marketing materials. The No. 1 factor that job seekers identify as the most important is salary/compensation (34 percent), followed by benefits (13 percent), company reputation (12 percent), work-life balance (11 percent) and company culture (11 percent).
Incorporate YouTube, connected TV, social video or pre-roll ads in your strategy. The best way to showcase company culture? With a video: 63 percent of job seekers would rather see a video about a company’s culture than read about it during their search.
“While posting on job boards offers companies visibility among active job seekers, advertising beyond these websites is key to reaching – and converting – today’s growing demographic of passive job seekers,” Loretto says. “Recruitment marketers can benefit from leveraging this data to inform a multifaceted digital strategy. Engaging job seekers with video, utilizing key messaging that resonates strongly with their goals and employing thoughtful geo-targeting tactics are all integral to attracting top talent in a crowded market where competition for job seeker attention is fierce.”
The study was conducted online using Survey Monkey. One thousand participants were polled across the U.S. The demographics of those polled represented a broad range of household income, geographic location, age and gender.
••• travel and leisure
Younger travelers see value in travel insurance
Older consumers, not so much
According to Berkshire Hathaway Travel Protection’s (BHTP) annual State of Travel Insurance research report, younger travelers (ages 25 to 44) have reported the greatest increase in travel insurance-buying intent for the second year in a row. Thirty-three percent of Millennials with children said they plan to purchase more travel insurance in 2019; for Boomers, 29 percent of travelers ages 55 to 74 said they plan to buy less travel insurance in 2019.
“Now in our fourth year of conducting the State of Travel Insurance research, we are seeing a trend that not just Millennials but more specifically Millennials with children are showing the most notable increase in travel insurance purchase intent,” says Dean Sivley, president of Berkshire Hathaway Travel Protection. “Millennials with children are also reporting that they travel to the most places and have indicated they are doing so even if risk, real or perceived, is involved.”
State of Travel Insurance 2019 looks at travel insurance buying patterns and preferences among multiple travel demographics and also the influence of risk, perceived or real, in preferred travel destinations. It is available for download at www.bhtp.com/soti-report.
Travelers’ safety concerns play a large role in the destinations they are choosing and their likelihood to purchase travel insurance. Millennials with children, the segment that travels the most, are most concerned about threats that could impact their family, such as disease outbreaks (47 percent of Millennials with children cite this as a travel fear compared to 38 percent of Millennials without children). While both younger and older travelers perceive destination safety and terrorism as major concerns, 41 percent of younger travelers see global politics as a major travel threat, while only 12 percent of older travelers do.
Other interesting points from the research include:
Younger travelers cite tech-driven and customizable travel insurance as most important: 43 percent of younger travelers said they would buy more travel insurance if they were able to customize their travel insurance compared to 21 percent of older travelers.
Thirty-eight percent of younger travelers said they wish their travel insurance was as technologically advanced as the rest of their travel experience, compared to 16 percent of older travelers.
Older respondents, historically the largest travel insurance buying segment, are twice as likely as Millennials to say they plan to buy less travel insurance in 2019 compared to 2018.
Travelers consider Ireland to be the safest destination and Colombia the least safe. Interestingly, three hurricane-ravaged destinations – the U.S. and British Virgin Islands and Puerto Rico – made the top 25 safest destinations.
Adventure travel continues to be one of the most popular and fastest-growing travel types. River cruises – where there is a strong likelihood of repeat business – have made inroads among younger travelers, as almost twice as many Millennials take river cruises compared to all travelers.
Younger travelers are much more likely than older travelers to be mindful of travel issues, with Millennials pointing to long-term concerns such as climate change and vanishing destinations.
The State of Travel Insurance includes responses from 2,617 travelers and 800 travel professionals about their travel habits, their travel business, their experiences in 2018 and/or their expectations for 2019. While the confidence level is considerably greater for the consumer survey (±2.52 percent) than the travel-professionals survey (±4.52 percent), the confidence levels in both surveys are sufficient to draw large-scale conclusions from the results. The survey research for the study was conducted by Polymath Research + Marketing.