Shoping Habits The Generation Gap CONSUMER Sponsored by BRP Consulting | brpconsulting Consumer Shoping Habits The Generation Gap | 2 UNDERSTANDING THE CUSTOMER JOURNEY Todays consumers want to shop whenever, wherever and however they want. The customer journey is evolving as consumers move acros channels to research, purchase and review products with easy aces to merchandise and information right in the palm of their hands. These additional customer capabilities have helped to establish even higher expectations from each and every part of the customer journey. Each step along the shopping journey ofers retailers another opportunity to engage with the customer and strengthen the personal relationship to drive sales and customer loyalty. While the shopping journey varies depending on the customer, product and even season, there are similarities within generational groups. Digital Consumers have higher expectations for the retail experience than Traditional Consumers and love to use almost any technology that might make their research and buying proces more convenient. 18-37 Years Old 38+ Years Old Research Shop Purchase Delivery Feedback Digital Consumer Traditional Consumer The Customer Journey BRP Consulting | brpconsulting Consumer Shoping Habits The Generation Gap | 3 RESEARCH The means available for customers to research brands and products has never been more varied, from simple web searches, to consumer reviews, to asking “Alexa.” 97% of Digital Consumers and 90% of Traditional Consumers do online research before they visit a store. Every platform for research provides a diferent perspective, and retailers must adapt to these outlets to kep up with the evolving customer journey. 42%VS Compare Prices Check Consumer Reviews Build a Shoping List 59%49%62%Compare Prices Look for Offers/Coupons Build a Shoping List 64%57%49%Digital Consumer Traditional Consumer 18-37 Years Old 38+ Years Old $Driven by Knowledge Driven by Discounts While consumers of al ages research prices before they visit a store, Traditional Consumers are more focused on discounts while Digital Consumers prepare for purchases by reading reviews and prioritizing the organization of their shopping list. Activities conducted online before visiting a store 44%Look for Offers/Coupons % OFFOFF % OFFOFF Look up Product Information BRP Consulting | brpconsulting Consumer Shoping Habits The Generation Gap | 4 SHOP Digital Consumers have higher expectations of customer service and personalized recomendations than Traditional Consumers. Digital Consumers want and use technology to make the shopping proces easier and more personalized. Traditional Consumers are more concerned with finding the product they want and having it available in the store they shop. Digital Consumer Traditional Consumer 18-37 Years Old 38+ Years Old Driven by Personalization Driven by Product Availability I want personalized recomendations 65%I want a curated selction of products from trained stylists 61%I want recomendations based on what is in my closet 60%63%60%I want the ability for an asociate to order out of stock products for me I want the ability to search in-store inventory availability Technology as an Enabler Self-service options allow me to control my own experience 87%I like automated pick-up and returns proceses 71%Self-service options alow me to control my own experience 60%An automated returns proces is nice, but not necesary 49%Automated pick-up proces may be nice, but not necesary 41%Digital Consumers have higher expectations of customer service and personalized recomendations and want to use technology to control their experience, while Traditional Consumers are more concerned with finding the product they want easily and efectively, and technology is not always the answer. Likelihod of consumer choosing a store based on services or in-store technology BRP Consulting | brpconsulting Consumer Shoping Habits The Generation Gap | 5 PURCHASE The store is stil a primary focal point in the customer journey so the technology necesary to provide customers with the best service is critical. With an increased focus on customer engagement and the convergence of the physical and digital retail environments, the point of sale plays a key role in shaping the customer experience. Making the checkout proces as frictionles as posible is key to satisfying customers. Digital Consumer Traditional Consumer Driven by Self-Sufficiency Driven by Ease of Use Mobile Point of Sale Used by Store Asociates Self-Checkout Ability to Pay via Mobile Walet or Retailer Ap 30% 45% 33% 59% 75% 65% Digital Consumers are more comfortable with technology and wiling to handle the checkout proces themselves. Traditional Consumers tend to be les interested in technology at the checkout unless it is easy to use. 18-37 Years Old 38+ Years Old Likelihod of consumer chosing a store based on check-out technology BRP Consulting | brpconsulting Consumer Shoping Habits The Generation Gap | 6 DELIVERY Consumers of al ages have high expectations for omni-channel fulfilment services with these services now table stakes for retailers. Delivering merchandise to consumers quickly and cost-efectively becomes a diferentiator for retailers as they try to win customer loyalty. Same Day Delivery Digital Consumer Traditional Consumer Driven by Sped Driven by Cost 77%84%Fre Delivery 60%86%Traditional Consumers dont fel the same urgency to have merchandise delivered immediately as Digital Consumers do, but everyone wants it delivered fre. 18-37 Years Old 38+ Years Old Likelihod of consumer chosing a store based on services offered BRP Consulting | brpconsulting Consumer Shoping Habits The Generation Gap | 7 FEEDBACK In a world where consumers have easy aces to public forums to air their grievances, it is even more critical to ensure customer satisfaction at each point of the customer journey. Retailers must continuously listen and enrich customer engagement opportunities that enhance the customer experience and increase brand loyalty. Contact the retailer to share their experience Share experience on social media Contact the retailer to share their experience Share experience on social media Stop shoping at this retailer Comunication Based on an Unsatisfactory Shoping Experience Comunication Based on an Exceptional Shoping Experience Digital Consumer Traditional Consumer Driven by Influence Driven by Satisfaction Digital Consumers want to share both god and bad experiences, most likely because this is information they look for when they shop, however, Traditional Consumers are not likely to comunicate with the retailer UNLES it is a bad experience, then they wil complain to the retailer. RETAILERSTAKE NOTE:Nearly two-thirds ofALL consumers wil stopshoping ata retaileraftera bad experience 65% 61% 6% 56% 6% 64% 27% 61% 29% 49% 18-37 Years Old 38+ Years Old BRP Consulting | brpconsulting Consumer Shoping Habits The Generation Gap | 8 DIGITAL CONSUMER DRIVERS STEPS IN THE SHOPING JOURNEY TRADITIONAL CONSUMER DRIVERS Knowledge RESEARCH Discounts Personalization SHOP Product Availability Self-suficiency PURCHASE Ease of Use Sped DELIVERY Cost Influence FEEDBACK Satisfaction SUMMARY Traditional Consumer Digital Consumer VS As Digital Consumers research products, they sek out consumer reviews to make more educated purchase decisions. When chosing a store, 65% want the ability to receive personalized recomendations and 65% prefer the ability to pay via a mobile wallet or retailer ap. Receiving merchandise quickly is important with same day delivery a reason to chose a store for 7% of these consumers. Digital Consumers are more likely than Traditional Consumers to share feedback on social media for both exceptional and unsatisfactory shoping experiences. Overal, Digital Consumers value knowledge and technology tols to assist them as they move throughout their shoping journey. Traditional Consumers focus on the basics when they shop product availability and competitive pricing. While shoping for products, 63% chose a store based on the asociates ability to order out of stock products. While they dont fel strongly about how long it takes for a product to arive, 86% wil choose a store with fre delivery over one that doesnt ofer this service. Traditional Consumers rarely share feedback on social media for any shoping experience, but for unsatisfactory experiences, 64% wil speak up by contacting the retailer to share their disatisfaction. Overal, Traditional Consumers value the ability to find the right product at the right price throughout their shoping journey. Research Feedback Shop Purchase Delivery The Customer Journey BRP Consulting | brpconsulting Consumer Shoping Habits The Generation Gap | 9 SURVEY METHODOLOGY The BRP Consumer Survey was fielded in December 2018 via an online survey to 1,298 consumers. The survey findings have a 95% confidence level with a +/- 3% margin of eror. Demographic details of the respondents are outlined below. Gender Generation Location 46% 54% 22% 23% 37% 18% Gen Z (18-21)5%Milenials (22-37)30%Gen X (38-54)24%Baby Boomers (54-72)35%Silent Generation (73+)7%Digital Consumer Traditional Consumer BRP Consulting | brpconsulting Consumer Shoping Habits The Generation Gap | 10 ABOUT BRP BRP is an innovative retail management consulting firm dedicated to providing superior service and enduring value to our clients. BRP combines its consultants' deep retail busines knowledge and cros-functional capabilities to deliver superior design and implementation of strategy, technology, and proces solutions. The firm's unique combination of industry focus, knowledge-based approach, and rapid, end-to-end solution deployment helps clients to achieve their busines potential. BRPs consulting services include: For more information or asistance on any of the topics covered in this report, please contact: BRP Atlanta | Boston | Chicago | Dalas | Denver | San Francisco ww.brpconsulting ©2019 BRP. Al rights reserved No part of this publication may be reproduced or transmited in any form or for any purpose without the expresed permision of BRP. The information contained herein may be changed without prior notice. 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