how-changing-shopper-attitudes-and-technology-are-reshaping-retail

and eventually close on the
website. People are buying
and shopping and consuming
potentially every waking
moment of the day.” 3
So it is not surprising that
definitions of e-commerce are
getting murkier. The Harvard
Business Review asked, in
2011, “Is it e-commerce if the
customer goes to a store, finds
the product is out of stock
and uses an in-store terminal
to have another location
ship it to her home? Or if she
finds a lower price through
her smartphone and orders
it electronically for in-store
pickup?” 4
As shopping changes, the
shopper’s experience becomes
more complex, and harder for
retailers and brand owners
to manage. Transactional
costs fall in an ‘everywherecommerce’
world, and so do
knowledge and information
costs. Increasingly, it is the
flattening costs of knowledge
and information that are
making the biggest difference
to the shopper.
From the customers’
perspective, they now expect
access to the whole catalog,
not just the range of goods
in a particular location, and
they also expect the retailer
to keep track of their personal
shopping history with that
retailer, regardless of location
Who do you trust?
25%
Advertising
or platform. In other words,
the customers want the
retailer to manage their “3
Ps” (profile, personal history
and preferences) and let them
have access to it whenever and
wherever they want it.
From the retailers’ perspective,
they are now in a world
where there are far more
intermediaries than there were
before, making it much harder
to communicate directly
with the shopper. Shopping
decisions are now framed
and managed by aggregators,
deal sites, social media and
social recommendations. The
speed of this change has been
remarkable. Only a quarter
of Americans believe that
advertising is a credible source
4
70%
Strangers
with product
experience
Source: Edelman Trust Barometer, US consumer survey, 2010
90%
Friends who
have used
the product
of product information; friends
who have used the product are
mentioned more than three
times more frequently.
But there is an upside here.
Companies that do manage
to make the connection with
their shoppers are rewarded
with permission to have a fuller
relationship than traditional,
mainstream bricks-and-mortar
retailers ever did.
All of this new conversation is
being shaped and enabled by
a surge in personal, portable
digital technologies, mostly
smartphones, but also tablets.
These are already widely used
for shopper R’n’R (research
and recommendation) and
are being used for purchase
The Future Shopper