The News: Verint released its Verint Experience Index (XVI) Retail Study, with data showing the in-store shopping experience is still, typically, the start and end of a customer purchasing journey. Sixty-six percent of customers complete their shopping journey this way. But there is still a need for consistent and connected experience across engagement channels. More information on the research can be found in this press release.
In-Store Is Still the Preferred Start and End of a Customer Journey
Analyst Take: Not surprisingly, with the recent NRF event, retail related news, product launches, and data were at the forefront. Verint contributed its newly updated experience index, XVI Retail Study, to the mix, which shows that, in fact, people are still shopping in stores! With all the digital buzz (and empty malls) it is sometimes easy to lose sight of this fact, but it is an important data point as retailers evolve their customer experience (CX) strategies.
Changing Dynamics of Purchase Journey
More than 60% of customers initiate their purchase journeys in physical stores, with an even larger percentage concluding their transactions there. Some consumers visit a physical store to research products, while others make an in-store visit to pick up an online purchase. A substantial 37% of customer journeys commence digitally.
Just because the majority of journeys start and end in a physical store, does not mean that the retail journey is linear and non-complex. There has been a shift from the traditional “walk into a store, buy something” approach, particularly notable among younger consumers. Customers are doing their research, and they are not necessarily doing it in a store or digital channel. Such is particularly true of Gen Z consumers with 80% of that segment basing their purchasing decision on a resource other than in-store or digital channels. Word of mouth and online review sites are popular sources of information for purchasing decisions.
Retail Giants and Customer Satisfaction
Amazon emerges as the leader in the US retail scene, excelling in both Customer Satisfaction (CSAT) and Net Promoter Score (NPS). Other notable performers include Ace Hardware, Publix, Lowes, and Costco.
Verint teased out the drivers of customer satisfaction for the top 25 US retailers and, overall, appeal, quality, and variety of merchandise was a top driver of a positive customer relationship. Having a broad product selection was the number two consideration when consumers were asked about the relative importance of 10 purchase considerations. This focus on product also mirrors data found in a recent report from IBM that reported product variety was an important issue in physical stores.
Other important drivers include the digital experience, price, and the service representative. The importance of each varies according to the type of retailer. As an example, a good digital experience was a high driver of satisfaction in grocery and technology sectors, but knowledgeable service reps were less important. For the higher touch home improvement sector, digital experience and service reps were of equal importance.
Digital CX Needs Improvement
When a customer has a problem, that touchpoint should be simple to interact with and focused on a positive resolution. According to the Verint data, engaging with customer service or handling returns becomes notably more challenging when conducted through digital channels. While in-store interactions benefit from a streamlined process, with 83% successfully completing tasks at the customer service desk, digital CX is not up to par. When customers reach out to customer service or try to return an item, 32%-40% of customers struggle with this task when visiting a company’s website via a computer.
Overall, the data points to the complexity retailers face in trying to meet expectations across what can be a meandering customer journey and the need for a multi-prong and very connected CX strategy. It is also important to note that CX is not a one size fit across verticals, or even within verticals, as evidenced by the different drivers and priorities noted across retail customers.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
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Author Information
As a detail-oriented researcher, Sherril is expert at discovering, gathering and compiling industry and market data to create clear, actionable market and competitive intelligence. With deep experience in market analysis and segmentation she is a consummate collaborator with strong communication skills adept at supporting and forming relationships with cross-functional teams in all levels of organizations.
She brings more than 20 years of experience in technology research and marketing; prior to her current role, she was a Research Analyst at Omdia, authoring market and ecosystem reports on Artificial Intelligence, Robotics, and User Interface technologies. Sherril was previously Manager of Market Research at Intrado Life and Safety, providing competitive analysis and intelligence, business development support, and analyst relations.
Sherril holds a Master of Business Administration in Marketing from University of Colorado, Boulder and a Bachelor of Arts in Psychology from Rutgers University.
