6-in-10 Consumers Ready to Leave Retailers Unable to Fulfill Digital Needs

In Industry News, What's New by Lauren ParkerLeave a Comment

digital sellingCloud-based unified omnichannel commerce platform Kibo released its 2016 Consumer Trends Report today, revealing that digital services are now expected as standard by consumers.

The takeaway? Retailers need to adapt, or risk losing their business all together.

In fact, more than half of U.S. (54%) and U.K. (56%) shoppers are willing to jump ship to a rival retailer if their preferred method of delivery isn’t available.

With only 5% of consumers surveyed preferring to avoid omnichannel completely, it seems digital services are central to the retail experience.

“Most consumers have their preferred places to shop, yet, retailers’ lack of progression toward offering a true omnichannel experience can erode their customers’ loyalty. As such, the only option left open to many consumers is a move to the closest competitor who will.”

The study of 3,000 consumers in the U.S. and U.K. identified high digital demands and rising expectations as the defining characteristics of today’s retail experience. In a warning to retailers, the research also found that the digitally demanding consumers’ loyalty is eroding.

With the pace of our everyday lives speeding up, the patience of digitally demanding consumers is wearing thin.

Nearly a quarter of Americans and a third of Brits expect short delivery times (two days or less). Four-in-ten (43%) of U.S., and more than a third (37%) of U.K., consumers would prefer to use in-store pickup (click-and-collect) if the option were available. In addition, nearly one-third (29% in both countries) will not buy from retailers unable to offer in-store pick-up or extended payment options (28% U.K.; 31% U.S.).

“As the marketplace becomes increasingly crowded, retailers need to remain a step ahead with their digital services and fulfillment options to ensure the loyalty of their customers,” said Kenneth Frank, CEO, Kibo. “Most consumers have their preferred places to shop, yet, retailers’ lack of progression toward offering a true omnichannel experience can erode their customers’ loyalty. As such, the only option left open to many consumers is a move to the closest competitor who will.

“The speed of change in the retail landscape is relentless. Embracing modern technologies is especially crucial for retailers and manufacturers looking to compete with the likes of Amazon and other Internet giants setting the digital benchmark,” Frank continued. “The ability to effectively route orders to match where there’s most demand, using a cost-effective cloud-based advanced order management system, is a critical component of any modern retailer or manufacturer’s armory. The ability to do this will help ensure customers have no excuse to look elsewhere.”

The Digitally Demanding Consumer: 2016 Consumer Trends Report can be downloaded here.

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