Does convenience trump price for today’s consumer?
During last week’s annual convention, the National Retail Federation (NRF) released a report showing that 83 percent of consumers say convenience while shopping is more important to them than it was five years ago. The report further states that 97 percent of respondents have backed out of a purchase because of some inconvenience. Ninety-three percent are more likely to shop at a certain retailer based on convenience.
Still, the most important factors to respondents are quality (32 percent) followed closely by the lowest price (30 percent). Convenience is mentioned as most important by just 13 percent, with a brand’s values mentioned by 12 percent and overall brand mentioned by 11 percent.
Two-thirds of consumers are willing to pay more for convenience in the grocery category; 61 percent will pay more in clothing, 59 percent in electronics, and 58 percent in personal care and pet supplies.
NRF says strategies like buy online, pickup in-store (BOPIS) ensure that shoppers have convenient experiences regardless of channel. Indeed, 70 percent of those surveyed said BOPIS improved their shopping experience. Nearly 80 percent have picked up items at in-store registers; over 40 percent have used curbside pickup; 32 percent have tried trunk delivery and 28 percent have used pickup lockers.
For online shopping, convenience matters most during the beginning research portion of the journey, whereas for brick and mortar, convenience matters most at checkout.
Consumer suggestions as to how stores could make the shopping experience still more convenient included asking retailers to place BOPIS items in a pickup area near the front of the store, offering online tools to locate items in stores and providing more staff assistance in locating sizes and trying on items.
- Growing emphasis on convenience for today’s consumers – National Retail Federation
- Consumer View Winter 2020 – National Retail Federation
DISCUSSION QUESTIONS: What specific changes should retailers implement to make the shopping experience more convenient for online, mobile and brick and mortar shoppers? How can retailers best balance the price/convenience mix?