Study shows that shoppers who experience problems with retailers won’t give them holiday business.
One in two shoppers who have experienced problems with a particular retailer say they will not give them their business on Black Friday or Cyber Monday, and nothing will sway them, according to a new survey from supply chain and retail solutions company JDA.
The survey also found that half of those surveyed harbor negative sentiments regarding home delivery, and one-third insist on convenient, streamlined deliver for online orders. Retailers who can’t meet expectations risk losing these customers to competitors who offers more convenient or streamlined shopping experiences. And while 60 percent of the 1,000 shoppers queried reported that they opted for in-store pickup of online orders to avoid paying for shipping, half of them experienced difficulties with the service.
“The biggest challenge for retailers today is finding the balance between keeping customers content while maintaining profitability to meet their needs in an increasingly omni-channel world,” Wayne Usie, senior vice president of retail at JDA said in the release. “It’s no longer sustainable for businesses to sacrifice profit margins in an effort to deliver customer satisfaction and meet demands. Instead, businesses need to take on a more holistic view of their logistics and fulfillment strategy to make better informed decisions that will not only provide a consistent omni-channel experience to customers, but more importantly, turn a profit.”
Offering free shipping on returns can be costly for businesses, even as it is becoming an increasingly common demand for shoppers.
The survey makes clear that retailers must deliver a strong customer experience to retain holiday shoppers this season. The study asserts, “Shoppers want what they want, when they want it, and they don’t want to pay.” As the release states, “While shoppers expect convenience throughout the retail experience, most are outright unwilling to pay for it, leaving retailers searching for ways to respond to consumer demand and still remain profitable.” Paying for and packaging returns was the number one frustration for 62 percent of shoppers, and over half report that it is “very important” to make returns easy. And door-busters remain an important impetus for 50 percent of Black Friday and Cyber Monday shoppers when deciding where to spend their holiday dollars.
Overall, the JDA Consumer Survey revealed that:
Consumers are still highly price conscious, including the costs of delivery and returns.
While many loyal customers remain, frustrations are running high as a result of service issues with home deliveries or Buy Online/Pick-up In Store services and costly and inconvenient return processes.
Significantly, consumer choices regarding how they shop, not only during the holidays but throughout the year, are changing, and their new choices are placing increased pressure on retailers’ profit margins.
“These survey findings speak to the importance of having an omni-channel retail strategy in place, not only during peak shopping seasons such as Black Friday, but also throughout the year. After all, consumers have high expectations on when, where, and how they make and receive their purchases,” Usie explained. “In a highly competitive marketplace, it is critical for retailers to intelligently configure their supply chains and how they use their staff, stores and inventory to fulfill consumers’ orders quickly, while also remaining profitable.”
