Whether it is digital tools like screen browsing, easy mobile payments or ordering online with seamless curbside or in-store pickup, shoppers clearly want technology to elevate their in-store experience, according to a new report commissioned by Periscope by McKinsey that reveals how tech-driven consumers are reshaping retail's next normal, with coronavirus concerns helping to accelerate consumers' demand for digital.
Periscope by McKinsey is a suite of marketing and sales analytics solutions that help companies achieve sustainable revenue growth. Founded in 2007, it is now a part of the McKinsey Marketing & Sales Practice.Whether it is digital tools like easy mobile payments or in-store pickup, shoppers clearly want technology to elevate their in-store experience, according to a report commissioned by Periscope by McKinsey that reveals how tech-driven consumers are reshaping retail's next normal, with coronavirus concerns helping to accelerate consumers' demand for digital.#
The report surveyed more than 2,500 consumers in France, Germany, the United Kingdom and the United States, to closely examine where the biggest changes in consumer behavior are happening.
Conducted before and during the pandemic shutdowns, the report reveals three consumer trends: the appetite for digital is surging with no signs of slowing down, brand loyalty remains vulnerable, and a new premium on safety and convenience, according to a company press release.
In addition, the report shows a significant gap between what consumers want in shopping experience and what retailers are actually providing, the company said in a press release.
The flight to digital and increased customer expectations have created new challenges for how retailers serve their customers.
The top three findings in each market revealed a clear difference in cultural preferences. Rather than sticking to familiar patterns and brands, consumers have embraced change amid great uncertainty.
In the four countries surveyed, 40 per cent of consumers said they tried new brands or made purchases with a new retailer between March and June 2020. Loyalty was particularly vulnerable in the United States, where 46 per cent of consumers made the switch, followed by 44 per cent of their UK counterparts.
Consumers' top reasons for making the switch across all four markets included competitive pricing and empathetic retailers that support their employees during the pandemic with initiatives, such as increasing wages, giving extra sick leave or paying for lost wages.
New concerns such as safety and hygiene are now top of mind. More than half of respondents said they want stores to follow guidelines to help keep shoppers and employees safe, such as the installation of plexiglass at the checkout, the use of masks, and availability of hand sanitizers, while 59 per cent said it is important for stores not to be too crowded.
Also, frictionless experience is now even more important. E-commerce spending has surged during the shutdowns, as the appetite for digital and contactless ways of shopping has intensified. In the United States, it was up more than 30 per cent from the beginning of March till mid-April, compared to the same period the previous year.
In all four countries surveyed, the survey observed higher shopping activity in several categories during the shutdowns. Categories with the biggest uptick were apparel (in the United States and the United Kingdom), children's products (US, UK, Germany), beauty (US), and grocery (US).
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