Consumers are well-equipped to seek out competitive products and retail policies
Nearly 9 in 10 online shoppers (87 percent) prioritize free shipping over fast delivery, and 60 percent believe they can order as late as December 17 - just one week prior to Christmas Eve – and still receive free shipping, according to new research from Deloitte. And even shoppers who want their items quickly said that they are only willing to pay an extra $5.10 for same-day delivery.
The 30th Annual Deloitte Consumer survey reveals what customers want and what retailers can do to engage them to make the most of the 2015 holiday shopping season.
Free trumps fast for this year’s shoppers, with 72 percent of respondents planning to take full advantage of the perk. In fat, 87 percent prioritized free shipping over fast shipping (13 percent) when purchasing items online. And although shoppers want their items fast, they are stingy when it comes to how much they are actually willing to pay for speed.
The study also found that this year’s shoppers will be doing more research before purchases and using more devices, with the majority (78 percent) of smartphone owners using their device for holiday shopping this year, and more than half (55 percent) saying they will check and compare prices from their device. A growing amount (41 percent) will use their smartphones to make purchases this season--up 6 percentage points from 2014.
The report also found that shoppers are being more methodical in their holiday purchases. Shoppers will plan the majority (57 percent) of their purchases before going to a specific store or website. In turn, fewer than 1 in 5 (19 percent) consumers expect to make completely unplanned purchases while shopping.
And the study also revealed that in the store, shoppers prefer self-help technologies that expedite the buying process over other in-store technologies. Topping the list are price checkers (57 percent) and self-checkout payment lanes (41 percent), well ahead of other tools including kiosks, retailer mobile apps, mobile payments, handheld product scanners, electronic shelf labelling, video screens, beacons, and digital signage–all of which came in under 20 percent.
Security remains a top concern for consumers, with more than 81 percent concerned about retailers that have experienced a data breach, up five percentage points from 2014. Despite concerns, 54 percent reported that they will still shop a retailer that has experienced a data breach. Online, 72 percent say they feel safer shopping on a website they have previously ordered from.
“Consumers value their time as much as dollars saved. So when it comes to shipping their holiday purchases bought online, they are expecting free shipping and they want options to get it delivered quickly,” said Rod Sides, vice chairman, Deloitte LLP and Retail and Distribution practice leader.
“With consumers spending more time comparing prices and policies for the holiday season, they are going to seek out the retailers who offer them exactly what they like. The challenge for retailers is that free and fast shipping are standards year-round, potentially causing a disruption for the industry as a whole as they redefine the supply chain process to be more efficient.”
View the infographic here.
