The Retail Doctor Group has released its 2021 Consumer & Retailer Sentiment Report, detailing the changing consumer behaviour, the gap between consumers and retailers and the next steps for retailers.
After a tough 16 months with constant restrictions and snap lockdowns, retailer confidence is still strong with 78 per cent stating they are optimistic about their trading. However, consumers are less confident with only 40 per cent saying they are confident for the next 12 months.
So what does this mean for retailers?
“Retailers should ensure they stay in close contact with their consumers to ensure they understand their needs and concerns,” the report states.
“Talk to your customers regularly through research, social media and instore to understand their mindset and build their trust. Your brand needs to have cues of trust and security for consumers during this period.”
When it comes to bricks and mortar, one in two retailers say their store network will increase by 2022 and 83 per cent of retailers predict their online sales will continue to rise. However, consumers still prefer instore shopping as online shopping growth slows down.
“Whilst the growth in online retail has been significant, physical retail is still paramount in the mind of the consumer and we expect to see the rate of online growth slow,” says the report.
“Retailers should evaluate their customer journey, what are the touch points both on and offline and are these experiences excellent? It will move to be more about the brand and the channels are the enablers, being in contact with consumers 24/7.”
Loyalty has become more important than ever in the post-pandemic world, with one in five consumers influenced by loyalty schemes when selecting a retailer―in homewares, women are more influenced by loyalty schemes than men, while 25 to 34 year olds are significantly more interested by homewares loyalty schemes than other consumers.
“Loyalty is an integral part of consumer behaviour. Whilst the majority of retailers are focusing on it during the next 12 months, 41 per cent are not. Given it influences more than 75 per cent of consumer behaviour, this should be a focus for all.”
Some last minute thoughts:
● Know your consumer―understand why they interact with you.
● Understand their purchase journey to align online and instore experience.
● Loyalty is a must―determine your loyalty offer in line with consumer personalities.
● Back to basics―ensure you are excellent at all retail skills from measuring stock turn to fulfillment.
● Staff are at the centre―consumers are looking to build relationships with staff, ensure you have appropriate training in place to build emotions rather than just ‘sell’.
