Commentary

Worldwide Digital Engagement Up, Social Media Suspect For Shoppers

According to a new global report by Capgemini, consumers consider social media (from awareness, through to post-sale activity) a less important part of their customer journey compared to two years ago, suggesting that the social media hype in the consumer goods and retail sector has not materialized. The second edition of the global report, which surveyed over 18,000 digital shoppers from 18 countries to provide insight into the changing nature of shoppers’ online retail habits, shows that smartphone shopping has grown in importance over the same period. The report highlights that 75% of consumers say that the internet is important or very important to shopping research, and the globally preferred channel to inform retail decisions (over all other channels, including stores),

According to the report, compared to 2012, less importance is being placed on following retailers on social media (such as Twitter and Facebook), finding out about new products through blogs, and participating in online retail customer communities. The responses of global shoppers demonstrate that social media is less important to the shopper journey compared with conventional retail store experiences, web, smartphone, email or the use of technologies in-store.

Kees Jacobs, Capgemini Global Digital Proposition Lead, comments: "… there is definitely a question mark over where and how ‘social’ fits into the shopper journey… social media is most relevant in the ‘awareness’ and ‘choice’ phases of shopping journeys… but much less in ‘transaction, delivery and post-sales’…

The survey shows that for point-of-sale the physical store is still the favored destination for global shoppers, with the Internet trailing slightly. For retail transactions:

  • 72% of shoppers see the store as important or very important compared to
  • 67% for the Internet
  • 14% of shoppers strongly indicate that physical stores have become less important for them
  • 51% say they will spend more money online than in-store in the future

High growth markets all show a significantly stronger preference for digital technologies than mature markets, says the report. Brazil, Mexico, India and China all place a much greater importance on the smartphone, social media and in-store technology when it comes to searching for product information, doing price-comparisons and purchasing products than all of the mature markets polled.

High-growth markets are also significantly more interested in receiving personalized offers and recommendations, with India (46%), Mexico (40%) and Brazil (38%) rating them as ‘extremely important’, in stark contrast to the equivalent statistics for the UK (13%), France (15%) and Germany (24%).  

Importance of Select Channels/locations When Making Purchase (% of Respondents; Digital Shoppers Worldwide; Users in Previous Three Months)

Experience

Important

Neutral

Not Important

Traditional store

72%

18%

9%

Internet site

67

19

14

In-store technology (e.g. Kiosks)

53

23

24

Email (newsletters, offers)

48

23

29

Smartphones (mobile websites & apps

42

20

39

Social media

36

19

44

Phone (call center)

31

20

39

Source: Capgemni/ORC I’ntl, September 2014

Other key findings from the report include:

  • Sector-wise, the fashion industry has registered a 9% growth in online purchasing preference
  • 72% of consumers agree or strongly agree that the online price will be lower than in-store or even in catalogues, consistent across all markets
  • 65% expect the option of ordering direct, or via an app (53%), from brand manufacturers to increase in the coming years.
  • 30% of consumers rate the traditional contact center ‘not at all important’ in tracking an order, and a quarter see it adding little value when seeking help with a new product.
  • 45% of shoppers agree that QR codes, Internet of Things (44%), and Wearable Devices such as Google Glass or Apple Watch (42%) will grow in importance in the shopping journey

Capgemini’s research highlighted seven categories of shoppers across the mature and high-growth markets, who use digital channels in different ways during their shopping journey:

 Mature Markets (Australia, Canada, Finland, France, Germany, Italy, Japan, Netherlands, Portugal, Spain, Sweden, the United Kingdom and the United States)

  • Reluctant Digital Shoppers… 11% of the sample…not comfortable using technology… prefer purchasing from physical stores… shun social media and smartphone as shopping channels
  • Value-Conscious Digital Shoppers… 29% of the sample… prefer in-store shopping… less comfortable using smartphones, tablets and social media
  • Socially-Engaged Digital Shoppers… 41% of the sample… Heavy users of digital technologies and comfortable using social media
  • True Digital Shoppers… 19% of the total sample… purchases online the most frequently of any other in the mature market segment… use apps to compare products, track delivery, sacrifice personal data for customized deals

High-growth Markets (Brazil, China, India, Mexico and Russia)

  • Digitally-Indifferent Shoppers… 23% of the sample..  apathetic towards digital technologies like smartphone and mobile apps… prefer stores
  • Interactive Digital Shoppers… 50% of the sample… comfortable shopping across all digital technologies…
  • Regular online shoppers… prefer retailers that embrace QR codes and mobile apps
  • Technophile Digital Shoppers… 27% of the sample… willingly adopted digital technology and makes online purchases regularly

Brian Girouard, Vice President, Capgemini Consumer Products, concludes: “… most companies are already on their ‘digital journey’ in some shape or form… many are uncertain whether… addressing the changing needs of their consumers…  the right priorities…  the right initiatives…”  

For additional information about the Capgemini study, please visit here.

 

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