Poor Customer Service and Out-of-Stock Products Driving U.K. Shoppers from Stores to the Internet, Accenture Survey Finds
Source: www.businesswire.com
LONDON--(BUSINESS WIRE)--Poor customer service and out-of-stock products are driving U.K. shoppers out of shops and onto the Internet, according to an Accenture (NYSE: ACN) survey of nearly 1,000 U.K. consumers released today.
The research into consumer attitudes found that 55 percent of respondents said that shops often did not have enough tills open and nearly half (49 percent) said that stores are frequently out of stock of the products they want.
Worryingly for retailers, the survey results make clear that if consumers do not find what they are looking for in one store, they do not hesitate to go to other stores. This is particularly true of shoppers for entertainment equipment and devices (91 percent) and for furniture (90 percent). “Retailers know that issues such as poor customer service and out-of-stock products frustrate their customers, but what is shocking is that only a small number of successful retailers translate this customer insight into meaningful operational customer service improvements across their retail and product channels,” said Richard Wildman, head of Accenture’s Retail practice in the United Kingdom.
The Internet’s growing influence Internet-savvy retailers appear to be benefiting from these disgruntled consumers. The survey found that more than half of male shoppers (56 percent) said they prefer to buy via the Internet than in traditional bricks-and-mortar stores, and 44 percent of all respondents — both men and women — expressed a preference for online shopping over in-store shopping.
The Internet is also becoming an integral part of the shopping experience for those visiting traditional high street stores. Almost three-quarters (71 percent) of respondents said they use the Internet to compare prices and then go to the store with the lowest price, and nearly half (44 percent) said they go online to determine if a product is in stock before starting their shopping trip. In addition, two-thirds (67 percent) of respondents said they research products via the Internet before shopping in a physical store.
“The Internet has become an extension of the in-store shopping experience,” said Wildman. “UK consumers are making wide use of it to not only buy products, but to check availability and find the best prices. Retailers need to make sure that if their website says they have a product, it really is on their shelves and not out of stock.”
New products not hitting the mark
New products appear to be having only a limited impact on consumers. More than one-third (36 percent) of respondents said that new products were introduced that they do not need, while just over half (51 percent) said that new products were introduced before consumers realize they need them. Only half (50 percent) of all respondents said they are more efficient today than they were two years ago because of new products.
“It’s critical to understand customers’ wants and needs so that new-product launches can be as effective as possible,” said Keith Barringer, managing director of Accenture’s Consumer Goods & Services practice. “A keener understanding of the customer can help manufacturers time new-product launches for maximum impact and help retailers know when to offer promotions to increase revenue and customer loyalty.”
Awareness and loyalty
When asked to identify the factors that have the most powerful influence on purchase decisions, the greatest number of respondents -- 48 percent -- cited word-of-mouth, followed by traditional advertising (31 percent). Nearly half (47 percent) said special promotions are the best way to retain their business, while 40 percent said improved customer service is the key to making them loyal shoppers.
Among the survey’s other findings:
Consumers say price and product selection matter most. The key criteria respondents cited for deciding where to shop are: price (87 percent), product selection (62 percent) and proximity to home or office (53 percent).
The top three places or ways respondents said they would like to learn about new products are: TV, word-of-mouth and Internet search engines, cited by 59 percent, 55 percent and 44 percent of respondents, respectively.
Women are more likely than men to shop at five or more stores for clothing (46 percent vs. 37 percent), while men are more likely than women to shop at five or more stores for consumer electronics (38 percent vs. 27 percent).
About the research
The Web-based survey of 977 U.K. consumers over age 18 was fielded in August 2007.
This research is part of a global study Accenture is conducting of consumers in the United States, United Kingdom, Germany, Brazil, Mexico, China, Japan and India, sponsored by Accenture’s Retail and Consumer Goods & Services practices along with the Accenture Customer Innovation Network.
About Accenture
Accenture is a global management consulting, technology services and outsourcing company. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. With more than 175,000 people in 49 countries, the company generated net revenues of USD 19.70 billion for the fiscal year ended Aug. 31, 2007. Its home page is http://www.accenture.com/.
Contacts
Accenture UK Press Office
Kirsty Whitehead, 020 7844 9267
kirsty.whitehead@accenture.com
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