STORES Magazine - October 2008 - (Page 33)

a flexible returns policy. Compared to the findings reported in 2007, the most dramatic change is linked to low prices: A year ago, 66 percent of those polled considered them to be very important; that figure jumped to 73 percent this year. With many consumers sensing that their disposable income is shrinking, the value they assign to a retailer’s pricing strategy and to services such as free shipping has increased incrementally. In many instances, the price may be the same online as it is in the store, but if they don’t have to drive to the mall to get it – and it ships for free – shoppers are elated. It’s important for online retailers to keep in mind how much time shoppers spend conducting research prior to making a buying decision and what effect that has on in-store purchases. BIGresearch found that 44 percent “regularly” conduct online research before making a purchase; 47 percent do so “occasionally.” What types of products are shoppers most likely to research prior to buying? Survey data shows that electronics, apparel, appliances, home improvement items and shoes top the list. deem 77% of womenof theirlow prices to be very important. As CEOs households, their mindset is downright crucial for retailers. LOW PRICES – AVERAGE: 4.6 2% 1% 7% 17% 42% 73% 20% 21% 48% 15% 26% 7% 10% 6% 5% Nothing is more important to shoppers these days, and 77 percent of women deem low prices to be very important. As CEOs of their households, their mindset is downright crucial for retailers. Still, managing a low-price strategy against the backdrop of the rising costs of doing business is not going to be easy. The desire for low prices is likely to drive shoppers to the plethora of price-comparison websites. BIGresearch finds that 44 percent of shoppers “regularly” research products online before buying; they know what a fair price is for the item they intend to purchase. Will shoppers abandon a retailer they know and trust in favor of a lesser-known competitor that’s pricing goods a few dollars cheaper? Time will tell. Still, many acknowledge that low prices often mean a trade-off on other product attributes. They’ll make that trade-off for some items; in other instances they won’t. A real person to speak with as they shop online . . . you can almost hear shoppers sighing collectively. Being able to ask a question, clarify a policy – or merely enjoy the companionship (and anonymity) of live customer service is a valuable piece of the online puzzle. Women are especially drawn to the “live” customer service feature on many websites, especially those 55 and older. There’s a convenience factor, to be sure, and users generally like the more relaxed conversation versus speaking with a call center operator who is more eager to take an order and move on. There are other benefits, too – especially for the online retailer. Experts report that potential customers are more than twice as likely to purchase products and services after using a “live” help service: they say it builds customer trust and confidence in the online retailer’s business. Live chat solutions can also be used to build long-term customer relationships if retailers are savvy enough to listen and respond to shopper feedback. How easy you make it for shoppers to use your website, find what they want and complete a purchase can make all the difference when it comes to converting browsers into buyers. Women (54 percent) are more inclined than men (41) to rate this feature very important, and shoppers 35 and older consider website usability vital. Confusing or mislabeled links can be the kiss of death, and making it difficult for shoppers to locate vital information is akin to ushering them out the door. Shoppers expect a website to load quickly; they’re annoyed by popups and frustrated when they can’t find a price or see details on a certain item. When an online retailer gets it right, however, an easy-to-use website can play a sizeable role in increasing sales, reducing customer service calls and boosting customer satisfaction and loyalty. WWW.STORES.ORG STORES / OCTOBER 2008 33 Source: BIGresearch/STORES LIVE TOLL-FREE CUSTOMER SERVICE – AVERAGE: 3.8 WEBSITE EASY TO USE – AVERAGE: 4.0 http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - October 2008

STORES Magazine - October 2008 Contents Executive Editor's Page President's Page Force of a Different Collar What Shoppers Think Bagging the Competition 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Favorite 50 Sticky Strategies for Retention Concept2Watch Kiosks Online Business Intelligence RFID NRFtech Wrap-up E-Commerce Credit Warehouse Systems Logistics Selling Tools Supply Chain LOEB Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - October 2008

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