The latest customer behavior survey from Oracle highlights new in-store and omnichannel shopping trends
The 2020 holiday season is turning out to be very different from the past. Customer expectations have transformed in the wake of a global pandemic to give way to new shopping behaviors. The year brings many surprises and continues to redefine the benchmark for customer experience.
“The holidays promise to test a retailer’s ability to serve customers how and where they want to shop,†said Mike Webster, senior vice president, and general manager, Oracle Retail. “With customers shopping both online and in-store, and taking advantage of new retrieval options such as curbside pick-up and ‘buy online pick-up in-store,’ retailers are going to have to be firing on all cylinders to meet customer expectations in an already difficult environment.â€
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While we have witnessed a spike in ecommerce, a new study from Oracle Retail shows that customers are equally eager to head back into stores this holiday season. The study surveyed over 5,143 customers across the U.S., U.K., Australia, China, Mexico, Brazil, Italy, France, Germany, and the U.A.E. in September 2020 about their COVID-19 shopping preferences.
The study found that globally, 65% of all adults have shopped at a nonessential store at least once since reopening, with younger shoppers leading the way. Customers also report that their shopping habits will remain the same as last year. This includes 64% of baby boomers who said they have plans to head back into stores for holiday shopping.
How Have Customer Experience Expectations Changed for in-Store Shoppers
The survey highlights that a majority of customers (71%) still value the speed of service, checkout experience, and delivery options as integral to their loyalty to a retailer. While many customers appear eager to revert to their regular shopping habits, safety is top of mind for both customers and retailers. Low or no-contact delivery is an important part of the experience. Customers are also looking to reduce the amount of time spent in-store. It is no surprise then that home delivery is still preferred by 66% of customers. Only 18% opted for in-store pick-up, and 16% preferred curbside pick-up.
Also read: 4 Ways Retailers Can Bring the Joy of Holiday Shopping To Ecommerce
About 33% of customers said that negative experience, like low stock and limited product availability, creates a bad shopping experience.
This is also driving changed customer behavior, opening the door for customers to try new brands and even new stores. Over 63% of customers reported trying new stores to meet their needs for essential goods. More than half plan to continue shopping at these new stores moving forward. On the other hand, 82% of global grocery shoppers said they were trying private-label or store-owned brands, along with 62% of shoppers searching for nonessential goods.
Social Media Drives Discovery
The study also found that social media use is becoming a key driver of purchase behavior for customers this holiday season. With people staying home, social media use has spiked. People are turning to social media to connect with friends, share news, and talk. And where customers go, retailers must follow. As digital emerges as the dominant purchase channel, retailers expand their visibility on social channels to entice new customers and capture new shoppers as behaviors continue to change.
The customer journey is shaped by Facebook, Instagram, and TikTok, with 88% of customers in China finding new brands on TikTok, and 30% of customers discovering new brands on YouTube, 26% on Facebook, and 18% on Instagram.
Holiday shoppers are also planning a mix of online and offline shopping, with 47% of customers planning to shop virtually and in-person—just 19% plan to shop exclusively in-store. With heavy demand across digital channels, retailers are looking to leverage physical proximity and inventory solutions to meet customer demands. December 18th was the magic deadline for online shopping to ensure Santa’s gifts arrive on time. Similarly, with higher volumes and extended delivery windows, procrastinators will be forces to run into stores to secure last-minute gifts.
Also read: How Ecommerce Can Help Retailers Succeed in the 2020 Holiday Season: Survey Reveals
“With more customers avoiding returns, redeeming gift cards will be the next big opportunity for retailers to engage customers and extend sales post-holiday,†noted Webster.
As the holidays get closer, all data points to a busy season for retailers and, of course, an unusual one with customers choosing both online and offline channels to complete their purchase journeys. Customer experience remains a key factor. With better insights into their inventories, retailers can ensure that customer expectations are met regardless of the channel.