As retailers map out their spending strategy for the rest of 2015, a big question is: What have we learned over the last 12 months that can help them tailor their budget investments?
Midway through 2014, Mindtree conducted a survey of 2,400 shoppers in the U.S., to try to better understand what’s driving their continued disruption of the retail world. We discovered that 60% of U.S. shoppers saying they combine online and in-store experiences in whatever way is most convenient or efficient for them. This is the “phy-gital shopper” — our term for the new wave of connected consumers who leverage the power of smart devices and the internet to make their shopping experiences easier, cheaper, more flexible and tailored to their individual needs.
But if phy-gital is the new norm, how should retailers respond to win the hearts and minds of these shoppers? There are multiple ways to do that, of course, and no one-size-fits-all approach. But following are a few of the key areas retailers should focus on throughout 2015.
It’s no secret to retailers that the rise of the phy-gital shopper has corresponded with a decline in the effectiveness and influence of promotions on sales and consumer behavior. Shoppers are tuning out the “noise” from the flood of promotions that fill their screens, mailboxes and inboxes. Instead, they want fewer promotions but deeper cuts, with 25% as the minimum suggested discount. With a better discounting regime and more discipline, retailers can pave the way for improved shopper satisfaction.