Management and consulting firm McKinsey & Company has issued a report from its Periscope series dealing with marketing and sales analytics that shows the Covid-19 pandemic has resulted in three distinct trends among shoppers in the U.S., France, Germany and the United Kingdom.
A survey of consumers showed a surging appetite for using digital methods in shopping with no signs of slowing down, brand loyalty can’t be relied on the way it once was and consumers place a new premium on safety and convenience.
In addition, the report shows a significant gap between what consumers want in shopping experience and what retailers are actually providing.
The survey uses data obtained before and during the business shutdowns caused by the pandemic. It found that consumers want technology to go hand-in-hand with their in-store experiences, including digital tools such as on-screen browsing, easy mobile payments and ordering online with curbside or in-store pickup.
Shoppers clearly want technology to elevate their in-store experience, according to the report. The flight to digital and increased customer expectations have created new challenges for how retailers serve their customers.
More than 35% of shoppers surveyed reported no exposure to even the most basic in-store technologies. In the four countries surveyed, 40% of consumers said they tried new brands or made purchases with a new retailer between March and June 2020. McKinsey found that brand loyalty was particularly vulnerable in the U.S., where 46% of consumers switched brands. Reasons given included competitive pricing and retailers that supported their employees during the pandemic by maintaining payrolls and giving extra sick leave.
In the U.S., 51% of those switching brands said they did so due to competitive pricing. Only 27% said they did so because they felt the brand or retailer was “caring.”
The McKinsey report said that more than 50% of the shoppers surveyed want stores to follow guidelines to help keep shoppers and employees safe, such as the installation of Plexiglas at the checkout, the use of mask, and availability of hand sanitizers, while 59% expressed the opinion that it’s important for stores not to be too crowded.
In the U.S., 65% of the consumers surveyed said they wanted to find what they’re looking for quickly and easily.
The report said that e-commerce spending has surged during the shutdowns, as the appetite for digital and contactless ways of shopping has intensified. In the U.S., it was up more than 30% from the beginning of March through mid-April, compared with the same period the previous year. Categories with the biggest upticks were apparel, children’s products, beauty items and groceries.
Free delivery and returns and fast delivery continue to be the important features for consumers when buying online. Informative product descriptions and clear product images at a time when consumers couldn’t see, feel or test products in a store ranked as one of the top three factors for a great online browsing experience in all the countries surveyed.
“While disruption and fierce competition are certainly nothing new for retailers, the pace and intensity of Covid-19-related change and their effect on consumers is unprecedented,” said Brian Ruwadi, senior partner and global leader of Periscope by McKinsey.
“This is a pivotal time where we’re seeing not only changing loyalties…but an opportunity to really connect with consumers in new ways as they reformulate their habits.”
