It’s a perennial problem that’s poised to get worse: What makes shoppers happy, and why aren’t retailers able to offer it? WSL is getting to the bottom of the challenge by talking to retailers and gathering shopper insights to understand how they can regain their entrepreneurial spirit.
Retailers and Brands, What’s Keeping You From Caring?
Nearly seven in 10 consumers tell us that the top necessity for living a happy life is being with people who care for them. Yet when we calculated the “caring scores” shoppers give retailers, the average was seven out of 10. In fact, no retailer scored better than seven – only one retailer approached an eight. (Can you guess who?)
Does that mean shopping is not a happy place? Depends on where you shop!
- 70% of shoppers told us they have been confronted by locked merchandise that required a sales associate to unlock. One-third told us they avoid these stores in the future. If a store is going to lock merchandise, it should let shoppers know so they can order online for in-store pick-up.
- For many consumers, paying the basic bills and putting gas in the car often means passing up a favorite brand. Nearly two-thirds of shoppers told us they have done so much because of high prices driven by inflation.
- A big brand concern is that more than half of shoppers feel manufacturers no longer care about quality. There are exceptions, but few. Faced with increasing prices, no added value or innovation and shrinkflation, can you blame shoppers for feeling quality has suffered?
The common denominator in these issues is they generate stress that makes the shopping trip harder, when many consumers go to the store to get away from stress.
Why can’t retailers remove the barriers to shopper happiness? We suspect it’s because retailers face their own barriers.
Here’s What We See as Retailer’s Happiness Hurdles
- A culture of caring about the customer should be at the heart of retail. Choosing and training the right store managers is essential to achieving a caring culture in every store.
- If a store locks up merchandise to prevent pilferage, it needs to give shoppers another option so they don’t scratch it off their stores-to-shop list. Listing locked merchandise on the website can allow shoppers to order online for store pick-up.
- Closing self-checkouts, which are used by two-fifths of shoppers, can deter customers from making quick in-and-out trips. (Self-checkouts skew younger, but one-third of Boomers use them, too.)
What We Can Suggest You Do Now:
Make caring a key performance measure.
Consumers have made it clear in our surveys that retail and brand trust is earned through acts of caring. The store manager is key for training and emphasis. A simple in-store shopper survey can help to determine if this is a caring retailer.
Build trust in national brands.
As shoppers weigh the value of their favorite brand vs. the pricing, trust in national brands has declined. In our research, Gen Z and Millennials feel store brands are innovative, well packaged and high quality – for a lot less money. Ask: Have store brands made inroads in your category?
Consider alternate channels for premium pricing.
Consumers appear to shed their money-conscious mindsets while shopping newer, less-traditional channels such as social media and direct-to- consumer. This might be because these channels are so easy to shop. One in four consumers we surveyed said they recently purchased something from a social media channel such as TikTok, Instagram, Snapchat or Facebook, or from a direct-to-consumer site. Two in five are increasing their shopping in these channels.
Reimagine the front end of the store.
Two-thirds of online order customers still run into the store after curbside pickup, with men likely looking for snacks and women for sales items. So retailers that offer this convenience should reconsider what merchandise those customers see if they enter the store. Put discounted goods within the line of site at the front of the store, for example. Meanwhile, retailers can find ways to attract that one-third of pickup customers who do not come in, perhaps with test coupons or similar incentives.
Speak up!
If retailers offer price reductions, easy shopping and a caring experience, they need to shout it out to shoppers. Shoppers don’t read press releases, but they do notice signage and displays in the store.
Happy Customer, Happy Retail
Can a happy shopping space contribute to happier lives? Our ongoing research shows that happy consumers shop in more places, spend more and say they are living their best lives. Our upcoming research results can help retailers and brands create that space, more efficiently.
Contact us for a presentation on how to make your shopping culture become a caring culture. Read our report, “The Impact of TLC (Trust. Loyalty. Caring.) on Retail Sales,” here.