Shoppers more willing to share data for a better omnichannel experience

New global IBM report into omnichannel retailing finds showrooming threat to retailers is lessening as more shoppers choose to make purchases directly online

Increasing numbers of shoppers are choosing to make purchases online and are happy to share their location and mobile phone details with retailers in exchange for value.

The new global IBM Institute Business Value Global Consumer Study found 27 per cent of respondents last shopped using an online channel, double that recorded in the previous year’s survey. By contrast, physical store shopping declined from 85 per cent to 72 per cent between 2012 and 2013.

While showrooming, or the practice of consumers checking out goods in-store only to then purchase them online, has previously been cited as a major danger to bricks-and-mortar retailers, IBM claimed the nature of online purchasing today has downgraded the threat. Research by Google in May last year found 84 per cent of shoppers are using their smartphone to help make purchases while in-store, with just over 50 per cent doing price comparisons.

Although the percentage of IBM's respondents engaged in showrooming activities grew 2 per cent year-on-year, only 30 per cent of all online purchases resulted from such activity, a drop of 20 per cent compared to 2012. Instead, 70 per cent of line purchases were made by shoppers that went directly to the Web, IBM stated.

The IBM survey of 30,554 consumers across 16 countries was aimed at understanding attitudes towards omnichannel retailing as well as how willing individuals are to share information such as their social handle, location and mobile number (SoLoMo) with retailers.

According to the results, 36 per cent would share their current location via GPS with retailers, nearly double the number from last year’s survey, while 32 per cent would share their social handles. Thirty-eight per cent of consumers would also provide their mobile number for the purpose of receiving text messages.

Based on the results, IBM devised with four groups of shoppers: ‘Traditional’, or those using the least amount of technology while shopping; ‘transitioning’, or those using technology mostly to gather research and information; ‘tech-intrigued’, using SoLoMo from browsing to buying; and ‘trailblazers’, or those using SoLoMo extensively including as a retail evaluation tool.

The biggest percentage of survey respondents (40 per cent) are ‘transitioning’, IBM said, while 29 per cent are ‘tech-intrigued’.

“Today’s consumer has been conditioned by multiple industries – from healthcare to travel – to expect personalised interactions across different channels,” IBM Retail Global Industry Leader, Jill Puleri, commented.

“IBM’s study shows consumers are willing to share details about themselves, particularly if they receive a personalised experience in return. It’s imperative that retailers enact a big data and analytics strategy that ensure they use consumer information wisely, gaining their customers’ trust and loyalty by providing value in exchange.”

Big data analytics: The new black magic of marketing?
Marketing predictions 2014: 5 analytics trends to watch
new data analytics approach helps retailers improve customer delivery

When it comes to the most important omnichannel capabilities to consumers, price consistency across shopping channels was the most highly prized attribute, followed by the ability to ship items that are out of stock in-store directly to their home.

Rounding out the top five in IBM’s survey were the option to track the status of an order; consistent product assortment across channels; and the ability to return online purchases in-store.

“While omnichannel retailing – the practice or providing consumers a connected, personalised experience across online, mobile and in-store channels – is the stated goal of nearly every retailer, consumers aren’t asking for it per se,” IBM stated. “They simply expect to be able to use their technology in all aspects of their life, including how they shop.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Data has the power to build or burn brands

A brand can be severely wounded by use or misuse of any of its assets and you could say data has the greatest power of all to inflict damage.

Lucy Acheson

Head of data strategy and customer experience, LIDA

Totto and your inorganic future

At Cannes Lions this year we’ve been treated to many artificial intelligence (AI) insights. It’s one of the major discourses of our time.

Richard Brett

CEO, opr

Personas of one and the rise of ‘always there’ marketing

I’ve got some bad news. The ‘always on’ marketing approach that many companies have only just fully implemented is already out of date.

Nigel Roberts

Founding partner and strategy lead, Yell

Promotion is difficult. You should be able to do it. Sometimes it turns out bad, and when you turn to professionals, it turns out well - ...

Jordan Samuil

Village Roadshow partners with Lion for pourage rights and promotional partnership

Read more

This is very good news for Australian SMEs as ActiveCampaign is an very powerful marketing automation / email marketing tool that costs a...

Lawrence

SMB marketing automation provider sets up Asia Pac HQ in Sydney

Read more

Thanks for the info! If you are looking for commercial real estate in Mumbai, visit us at Jagaha.com! We have over 20,000 verified proper...

Gizelle

Salesforce ups the Marketing Cloud ante with Datorama acquisition

Read more

Completely agree! For the best commercial properties in Mumbai, visit our website - Jagaha!

Gizelle

Salesforce ups the Marketing Cloud ante with Datorama acquisition

Read more

Carisoprodol is used for treatment of pain.so it has some amount of drug use it carefully . Get its complete usage and prescription from ...

jensons henry

CMO profile: The strategy behind Cash Converters brand and customer experience reboot

Read more

Latest Podcast

More podcasts

Sign in