Consumers are Willing to Give Loyalty for an Omnichannel Experience

Australian retailers’ ongoing lack of technological proficiency, particularly as it relates to offering an omnichannel experience, is beginning to seriously disenfranchise local consumers, according to IBM research.

The Australian findings released from IBM’s global consumer study reveals a downward trend in consumer advocacy as shoppers continue to become more disaffected by technologically deficient retail experiences.

The statistics show that advocacy has called from 32 percent in 2013 to just 13 percent in 2014, while consumer antagonists have surged from five percent to 24 percent in the same timeframe. What’s the deal?

The annual study includes more than 1,800 Australian consumers who were asked questions regarding their shopping habits. Unsurprisingly, the online sales channels seems to be the only winner in this negative atmosphere, with 15 percent of respondents saying their last purchase was made online – up from just five percent in 2013.

Highlights of the Report:

  • More people are shopping online – 15 percent today said their last purchase was online compared to 5 percent in 2013
  • A seamless omnichannel experience is essential to drive shopper loyalty and business performance
  • Consumers are more willing to provide all types of information in return for personalised service
  • 34 percent of consumers will share location based information, 18 percent in 2012
  • 32 percent of consumers posted about a retailer they had shopped with
  • Friends’ posts or pins about items purchased (51 percent) are the most influential

Ian Wong, ANZ Retail Industry Leader for IBM Global Business Services, highlights the rapid adoption of technology among consumers as driving an increase in dissatisfaction with poor quality retail experiences across multiple channels.

“With customers’ rapid adoption of technology, and the use of this technology to engage, endorse and buy with retailers, the need for retailers to invest has never been so vital to their survival.

“Retailers need to focus their investment on energising the store experience using mobile and social combined with location based technologies; deliver on the promise of omnichannel – a seamless and consistent offering across in-store and online; and finally act quickly to meet the expectations of customers, benchmarking against the trailblazer shopper.”

For a breakdown of the findings at-a-glance, IBM has prepared the following infographic:

IBM Consumer Study

Infographic courtesy of IBM.

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