Digital shoppers
purchase at a 40 percent higher rate in-store; 84 percent reach for devices
before or during store visits
Digital
interactions influence 36 cents of every dollar spent in the retail store, or
approximately $1.1 trillion, according to the latest study from Deloitte
Digital. By the end of 2014, that number
will climb to 50 percent, or $1.5 trillion of total store sales.
The study,
"The New Digital Divide," is first-of-its-kind research that
quantifies the extent to which consumers' use of desktop and laptop computers,
tablets, and smartphones influences brick-and-mortar store sales.
"Mobile and
online transactions represent only a sliver of total retail revenue
potential," said Kasey Lobaugh, principal, Deloitte Consulting LLP and
Deloitte Digital's chief retail innovation officer. "Retailers that narrowly focus on
digital commerce – rather than the full journey that leads to a purchase –
often fail to recognize how their customers shop and make decisions in the
store. The result is a digital divide
between what consumers do and what retailers deliver. This gap not only threatens overall revenue,
but requires retailers to reset the way they measure and invest in digital
efforts."
Looking solely
at smartphones, industry estimates put mobile commerce sales at roughly $40
billion today. By comparison,
Deloitte Digital's data indicates that mobile-influenced sales in the store
have reached $593 billion, suggesting that smartphones' influence on store
sales has far surpassed the rate at which consumers make a purchase directly on
their phones.
Fear no
showrooming: Digital shoppers bring higher store traffic, conversion and
spending
Consumers using
a device during their shopping journey convert – meaning they make a purchase
-- at a rate 40 percent higher than those who do not use a device. Additionally, Deloitte Digital found a
dramatic impact on traffic, spending and loyalty from digital shoppers:
- 84 percent of store visitors use their devices before or during a shopping trip.
- 22 percent of consumers spend more as a result of using digital; just over half of these shoppers report spending at least 25 percent more than they had intended.
- 75 percent of respondents said product information found on social channels influenced their shopping behavior and enhanced loyalty.
"Each
interaction is an opportunity for a retailer to enhance the customer experience
and tell its brand story," said Jeff Simpson, director, Deloitte
Consulting LLP and co-author of the study.
"However, retailers often measure success solely on how many widgets
they sell through their web or mobile sites.
For example, retailers might regard online shopping cart abandonment as
a failed conversion when in reality, it may represent a customer who started
their wish list in the online basket, but chose to purchase the items in the
store. In that case, digital engagement
may have led to a sale in the physical store.
This impact is much higher when measured holistically across the organization
and regardless of channels, rather than force-fitted to a single point of
purchase."
Eight in 10
shoppers prefer DIY; specialty stores most digitally-influenced
Currently, more
than 90 percent of retail sales occur in brick-and-mortar stores, but the
surging digital influence calls upon retailers to redefine marketing, the store
associate's role and in-store technology.
Consumers
largely prefer to navigate the aisles and the checkout without a store
associate's help. Eight in 10 (80
percent) respondents in Deloitte Digital's study said they prefer to obtain
product information on their own device or from an in-store device like a
kiosk, rather than ask a sales associate.
However, digital
interactions are not "one-size-fits-all" and vary significantly by
store category, with the highest influence occurring in specialty stores. At the top is the electronics/appliances
category, where devices influence 58 percent of store sales, followed by
furniture (56 percent) and sporting goods (50 percent); the impact falls lower
in categories like health/personal care/drug (35 percent), grocery (29 percent)
and general merchandise/department/warehouse club (23 percent).
About the Study
The survey was
commissioned by Deloitte Digital and conducted online by an independent
research company between November 15 and 22, 2013. The survey polled a national
sample of 2,006 random consumers. Data were collected to be representative of
the U.S. Census for gender, age, income and ethnicity. The national random
sample and samples of smartphone owners and device owners have a margin of
error of plus or minus 2-3 percentage points; the sample of tablet owners has a
margin of error of plus or minus 3-4 percentage points.
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