• by Ray Schultz , Columnist, September 30, 2022

Email is the most popular engagement channel among mass-market retailers. But it is not the fastest-growing during this inflationary period, judging by the Verint Guide To Customer Engagement in the Retail Industry, a two-part study released Friday.

The study shows that retailers are using these channels to connect with their customers: 

• Email — 88%
• Phone — 82%
• In-Person — 76%
• Customer Website, Online Community or Discussion Forum — 62% 
• Messaging — 56% 
• Social — 51% 
• Chat — 41% 
• Fax/Mail — 32%

However, email volume is not growing as quickly that of some other channels:

• Social — 61%
• Chat — 56%
• Messaging — 56%
• Customer Website, Online Community or Discussion Forum — 54%
• Email — 41% 
• Phone — 40% 
• In Person — 40%
• Fax/Mail — 22%

Yet email is in a three-way tie for first place among channels that have been automated:

• Email — 66% 
• Messaging — 66% 
• Chat — 66%
• Customer Website, Online Community or Discussion Forum — 65%
• Phone — 61%
• Social — 55%
• Fax/Mail — 43%

This is happening as consumers express economic uncertainty. Of those polled, 62% are less confident in the current state of the economy. 

Among those in the 55-74 age range, that figure rises to 78%. But only 47% of people aged 18-24 are less confident. 

What are consumers doing about it? Of those who are less confident, 88% are spending less/saving more.  

Specifically, they are cutting back on:

• Recreation — 91% 
• Clothing — 80%
• Food — 53% 
• Gasoline — 42%
• Paying off debts — 17% 
• Spending less — 76% 
• Spending more — 34%

Loyalty is critical in this climate — 91% of consumers regularly buy from their favorite mass market retailers, 33% weekly. And 42% spend at least $100. 

But only 23% buy from new retailers at least once a week. Moreover, a mere 22% have purchased from a mass-market retailer for the first time. But 76% of those that have returned for additional buys.  

What drives retail loyalty? Consumers want: 

• Value for money — 56% 
• Product quality — 34% 
• Selection/product assortment — 30% 
• Easy Purchase Process — 25% 
• Easy Returns Process — 18%
• Good Overall Customer Experience — 13%

That last number is surprising, for 88% also say they are likely to make repeat purchases following a positive experiences, and 82% to recommend the company to friends or family.  

How are retailers staying in touch? These channels are experiencing the following volumes: 

• In person — 40% 
• Phone — 23%
• Email — 23% 
• Social — 15% 
• Customer Website, Online Community or Discussion Forum — 14%
• Messaging — 14%
• Fax/Mail — 11% 
• Chat — 9%

Here are the channels retailers plan to add in the next 12 months. Perhaps because it is already so widely used, email does not appear in this list: 

• Social — 50% 
• Customer Website, Online Community or Discussion Forum — 42% 
• In Person — 39% 
• Chat — 34%
• Messaging — 33%
• Phone — 33%
• Fax/Mail — 18% 
• Not Planning To Add Any Channels — 27% 

Verint surveyed 2,000 U.S. consumers and 200 businesses in July, 2022.