As digital disruption revolutionises the retail market, Dentsu Aegis Network has revisited its 2016 Retail DNA report to trace the evolution of shopping behaviours over the three intervening years.
Retail DNA 2.0, in collaboration with Canvas8, the leading behavioural insights consultancy, finds out what drives today’s savvy, demanding and sceptical shoppers. It maps emerging behaviours from 2016 that became mainstream - and identifies what is new as the retail context has evolved and transformed.
Dentsu Aegis Network and Canvas8 conducted a large-scale survey, speaking to retail and behavioural experts and the shoppers themselves. This provided actionable and relevant insights, exploring the impacts and differences across the categories of health and beauty, technology, fashion, and home.
Retail DNA 2.0 points out that while we have lost big high street brands, retail in the UK is still a £360 billion sector and grew by around two per cent in 2018.
However, 80 per cent of consumers insist retailers do not know what they like with 72 per cent demanding they do more to improve the shopping experience. This report provides context and solutions for brands.
Motivations and behaviours
The report examines four behaviours influencing the consumer journey today and how brands can meet the demands of the savvy, demanding and sceptical shopper.
Data Divas
People see their data as currency for personalisation – with a value of £254 a year. Prescriptive Perfection has shifted from people happily sharing data for personalised services, to people realising the value of their data and expecting in return an experience that feels considered and premium.
This is, in part, being driven by an increasing desire to feel unique. And this doesn’t just apply to products – 56% of customers are more likely to shop at stores that recognise them by name. From brand communications to promotions, this expectation is now present in all aspects of the shopping journey.
Auto-mates
People are looking to new technologies and subscription boxes to automate their purchases. Stopwatch Shopping has evolved from people not wanting to shop for basics, to them looking to streamline all stages of the shopping journey.
Trusted Influence
Buying Influence has moved from people wanting products promoted by peers, to people seeking authentic sources of recommendation. Peer recommendations only work if they are from authentic trusted sources – the micro-influencers.
Brick and Pixel Stores
The normalisation of omnichannel shopping and technological developments in the last three years means people now expect brands to offer the benefits of online and offline shopping, at all times.
Liz Lavelle, Chief Insight Officer and Head of Growth Consultancy PDIQ at Dentsu Aegis Network, said: “Retail DNA 2.0 offers up challenges but also clues towards solutions around personalisation and authenticity informed by technology. The three tips for staying ahead of the curve?
“Promotions and advertising are coming under increased scrutiny and customers are now seeking authentic sources of recommendation, and value. Consumers are becoming increasingly attuned to retailer sleight of hand and sustained growth will increasingly rely on consumers believing that the discounts being offered are genuine.
“Truly own the experience. Customers want more, and retailers are adapting to these increasing expectations. Retailers need to give a positive experience but in doing so avoid the trap of building in complexity or irrelevance.
“Enhance transparency. It builds customer loyalty and can be a distinctive stance the market. People want brands not only to be more transparent about how they use their personal data and how it benefits them.
“Embrace innovative technology particularly when it comes to harnessing everyday technologies to streamline the path to purchase and enhance personalisation.
“Overall, while the future of retail remains unpredictable, we expect to see retailers continue to innovate and invest in technology to enhance their offerings. However, customer needs and expectations must be at the forefront of these developments.”
Rebecca Smith, Behavioural Analyst at Canvas8, said: “The trends highlighted in this report reflect the dynamic and changing nature of the retail landscape and the challenges it faces due to a combination of economic and technological factors. Customer needs are at the forefront of these factors and in lots of ways show that retailers must do more to ensure they are well positioned to serve today’s shopper – when, where and how they want to be served.”
