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Industry Stream

Exploring influencing factors of retail shopping decisions

This project focuses on understanding consumer behavior and preferences in the retail sector to identify the key factors that influence shopping decisions, loyalty, and repeat business. By examining what drives customers to choose one retailer over another and what keeps them loyal, the study aims to provide actionable insights for retailers to enhance their offerings and remain competitive.

Interviews

2

human moderated

From all time

89

AI moderated

From all time

Top themes

Loyalty programs

216

Price

185

Convenience

133

Shopping behavior

126

Discounts

125

Product quality

116

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Insight 1: what factors influence customers' decision to purchase at a retail store

Price sensitivity and value for money

Price is dominant in purchasing decisions, especially during a cost-of-living crisis. Customers often prioritize finding affordable options that align with their budgets while ensuring the product offers reasonable value for its price. Perceived worth, such as durability relative to cost, is significant in assessing value.

Convenience in access and availability

The accessibility of the retail store and the convenience of obtaining products influence purchasing choices. Customers weigh the ease of visiting the store, the availability of desired items, and the delivery or pick-up timelines. Speed and convenience are particularly critical for time-sensitive needs.

Familiarity and trust in the retailer

Customers often prefer stores they have visited before, as familiarity provides a sense of reliability and predictability. Trust in the quality and consistency of products at a known retailer reduces the perceived risk of dissatisfaction.

Sales, discounts, and cost-saving opportunities

Promotions and discounts significantly impact purchasing decisions. Customers actively seek deals and optimize purchases by comparing prices or using bundled offers. Frustrations arise when pricing strategies are confusing, or savings fall short of expectations.

Product selection and availability

Customers value retailers that offer a wide selection of products tailored to their specific preferences, such as style, color, or functionality. They frequently research online beforehand to ensure the store carries what they need, avoiding wasted trips or irrelevant offerings.

Insight 2: how do inclusive platforms and store layouts influence customer retail experience

Accessibility and inclusivity

Store layouts significantly affect shoppers' experience with mobility challenges. Narrow aisles, poorly placed stock, or cluttered walkways can create barriers, making shopping stressful or impossible for individuals using wheelchairs or other mobility aids. Ensuring accessible layouts and staff trained to assist can significantly enhance inclusivity.

Customer service support

The presence of attentive and approachable store staff is crucial. Shoppers value employee assistance for tasks like reaching for items or navigating the store. Negative interactions, such as discriminatory behavior, can alienate and discourage customers from returning.

Clarity and simplicity in online interfaces

Websites and apps with user-friendly designs and straightforward navigation enhance the shopper experience. Features like accurately showing product availability and excluding out-of-stock items from search results simplify shopping, saving customers time and frustration.

Efficient space management

Overcrowded shelves and excessive stock in aisles can detract from the shopping experience. Clear, well-organized layouts prioritizing ease of movement improve customer satisfaction and encourage repeat visits.

Technology integration and optimization

Seamlessly integrated online platforms that prioritize convenience—intuitive search functions and easy-to-use click-and-collect systems—enhance the shopping experience. Simplified processes that minimize time spent navigating or troubleshooting make digital interactions more appealing.

Insight 3: what features do customers prefer in their shopping experience

Mobile apps as central platforms

Apps have become an integral part of the shopping experience, offering convenience, simplicity, and tailored features. Retailers with intuitive, feature-rich apps (e.g., easy navigation, personalized recommendations, and exclusive deals) stand out. Apps like Milk Run demonstrate how streamlined interfaces and curated categories enhance user engagement.

Sensory-friendly shopping

Customers, particularly those sensitive to bright lights or loud noises, are increasingly valued by the integration of sensory-friendly shopping hours. Features like dimmed lighting and reduced noise levels create a more inclusive and calming environment, enhancing in-store experiences.

Seamless click-and-collect options

Click-and-collect services are favored for their cost-effectiveness and convenience. They eliminate the need for delivery fees while allowing shoppers to retrieve items on their schedule. Streamlining this feature through apps and websites adds further appeal.

Simplified navigation and search tools

Ease of navigation is critical whether online or in-store. Digital platforms with clear categories, effective search functions, and full product availability visibility improve the shopping experience. Frustrations arise when users must search extensively for specific items or encounter incomplete listings.

Integrated omnichannel experiences

Offering synchronized online and offline experiences, such as virtual try-ons and physical in-store options, creates a balanced and satisfying shopping journey. Customers value the ability to research or virtually browse while retaining the option to interact with products in person for final purchase decisions.

Insight 4: what is the role of loyalty and rewards on customer shopping experiences

Building customer loyalty

Reward and loyalty programs create a sense of value and appreciation, encouraging repeat business. Customers often remain loyal to retailers that offer tangible benefits, such as discounts, cash back, or exclusive deals—programs perceived as genuine and rewarding foster deeper emotional connections with the brand.

Driving store preference

Shoppers are influenced by the specific benefits of loyalty programs when choosing where to shop. For instance, programs offering discounts at the point of sale or faster points accumulation (e.g., 10% off or redeemable rewards) often sway decisions favoring the retailer providing these perks. Customers prioritize programs that provide immediate and noticeable savings.

Enhancing engagement through exclusivity

Programs that offer personalized experiences, such as birthday discounts, exclusive promotions, or unique event invitations, improve customer engagement. These benefits make customers feel valued and catered to, strengthening their relationship with the retailer.

Promotions and bundle offers

Loyalty programs that include well-timed promotions, bundle offers, and seasonal discounts appeal to deal-seeking customers. These programs encourage customers to delay purchases until they align with promotional opportunities, ensuring value for money and maximizing satisfaction.

Perceived value determines usage

A loyalty program's success is tied to its perceived value. Customers favor programs that are easy to use, offer clear rewards, and provide frequent benefits. Conversely, programs with minimal savings, excessive marketing emails, or vague benefits are less engaging and may lead to disengagement. Customers prioritize programs that offer meaningful and attainable rewards.

What's the future of retail shopping?

Integration of AI and chatbots

AI-powered tools and chatbots are becoming more prevalent in retail, offering 24/7 assistance for customer inquiries. While adequate for simple tasks, these tools need refinement to address complex issues and seamlessly transition to human support when required. The key to their success lies in balancing automation with personalized human interaction.

Streamlined digital checkout experiences

The future of retail will see enhanced checkout systems, such as auto-filled information, one-click payments, and biometric authentication. These innovations aim to make the online and in-store checkout process faster and more convenient, catering to time-sensitive customers.

Personalized shopping journeys

Retailers will increasingly use data-driven insights to offer highly customized shopping experiences. Features like tailored recommendations, customized promotions, and predictive restocking alerts will help create a more engaging and relevant experience for individual shoppers.

Seamless omnichannel integration

As more consumers shift between online and physical stores, retailers will focus on creating cohesive omnichannel experiences. This includes synchronized inventories, smooth transitions between app, website, in-store services, and flexible options like click-and-collect and same-day delivery.

Enhanced self-service and contactless solutions

Self-service kiosks, cashier-less stores, and contactless payment systems are expected to expand, offering faster and more independent shopping experiences. These innovations cater to customers seeking convenience and minimal in-person interaction, especially in post-pandemic retail environments.

Focus on ethical and sustainable practices

Consumers increasingly prioritize brands that align with their values. Future retail experiences will likely emphasize transparent sourcing, sustainable practices, and community engagement to meet the ethical demands of the modern shopper.

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