A recent study conducted by PFS has shed light on the risks that retailers face in terms of customer loyalty. The study has shown that there is a gap between the in-store shopping experience and the online shopping experience, which can leave customers dissatisfied and more likely to explore other brands.
The rise of e-commerce, especially during the pandemic, has exposed the shortcomings of retailers when it comes to replicating the tangible aspects of in-store shopping online. The study reveals that 80% of respondents miss at least one element of the traditional shopping experience while browsing online. Furthermore, 35% of participants admitted to having such a negative experience with a trusted brand that they have switched to other brands.
The study also found that 23% of participants feel that online stores do not engage with them enough or prioritize customer satisfaction. The aspects of the in-store shopping experience that are missed the most include the ability to physically touch products (43%) and test certain items (41%) to assess suitability in terms of size or color.
Retailers have attempted to address these deficiencies by introducing online tools such as FAQ pages and website chatbots. However, the report suggests that these efforts to enhance brand loyalty are not meeting expectations. In fact, 21% of respondents stated that online customer service does not match the level of in-store assistance.
Customer loyalty is not solely determined by the point of sale, as other factors can contribute to a decreased interest in a brand. Slow delivery (18%), limited stock availability (17%), and complicated returns processes (14%) were identified as potential reasons for decreased interest. These factors could account for 63% of Gen Z consumers and 46% of Millennials stating that they have abandoned a previously trusted brand due to a poor shopping experience.
According to the report, fulfillment will play a crucial role in differentiating brands. The study found that 37% of consumers would prefer to choose how their products are packaged, while 64% would be more loyal to brands that offer delivery timeframe options. Additionally, 52% would prefer to shop with companies that help minimize their carbon footprint, and 49% would prefer packaging that can be repurposed. Moreover, 70% of respondents expect online retailers to minimize packaging in general.
The report emphasizes the importance of meeting the preferences of future shoppers, particularly Gen Z consumers. It suggests that retailers need to ensure they offer packaging choices, options for buying and returning in-store, and click & collect services to guarantee long-term brand connections.
The reopening of high street stores will act as a true test of loyalty for online brands. While 39% of consumers believe that safety measures implemented in-store should continue after lockdown, 40% claim that their loyalty will return to retail brands with a physical presence on the high street in the post-pandemic era. However, this loyalty may not last long, as 34% of participants expect to return to online shopping once the initial excitement of the high street reopening subsides.
The report predicts that the role of the high street will evolve into one that focuses on providing experiential shopping. Gen Z consumers, in particular, expect retailers to offer more in-store experiences than before lockdown. They also anticipate that shops will become places for browsing rather than solely for making purchases.
Christophe Pecoraro, Managing Director of PFS Europe, emphasizes that the shift to online flagship stores does not mark the end of the high street. Instead, there will be a transition in the core functions of physical stores towards a future that prioritizes in-store experientialism in support of online sales.
In conclusion, retailers must bridge the gap between the physical and online shopping experiences to maintain customer loyalty. By understanding and meeting customer preferences for in-store elements and fulfillment options, brands can cultivate lasting connections with customers in this increasingly omnichannel world. The survival of the high street will depend on its ability to offer unique experiential shopping experiences that complement online sales.
Useful links:
– [Example of a retailer successfully bridging the gap between physical and online shopping experiences](https://www.retaildive.com/news/burberry-to-open-innovative-omnichannel-flagship-store-in-london/577949/)
– [Tips for improving customer loyalty in the e-commerce era](https://www.shopify.com/enterprise/improving-customer-loyalty-ecommerce)
