Understanding the five omnichannel shopping journeys that have taken root during COVID-19 Jo Bowman Source: Event Reports, ARF SHOPPERxSCIENCE, March 2021 Downloaded from WARC Store closures, interruptions to supply chains and shifting consumer priorities have together transformed the way people shop – and that means retailers have to transform the way they operate. Fully 82% of people have changed their shopping habits in some way since the start of the COVID-19 pandemic. Four in ten consumers are now regularly buying things online that they would have bought in a physical store pre-COVID-19. Almost half of consumers who are shopping online for the first time because of the pandemic prefer e-commerce to brick-and-mortar stores. Why it matters It’s not just that more people are shopping online than before; the interplay between physical and digital shopping is in flux, new shopper journeys are emerging, and retailers need to know how to make the most of new opportunities. Takeaways Digital technology is empowering shoppers across online, offline and on omnichannel shopping journeys. Journeys are evolving around specific shopper needs, linking online and offline services in nuanced ways. There’s still a strong desire among shoppers to use physical retail stores, but in new ways. Five omnichannel shopping journeys have emerged as consumers hack the retail experience to find the right balance of value, confidence, enjoyment, efficiency and safety during the COVID-19 pandemic. Nils Wagner, global lead for consumer research/retail at Facebook, the social networking giant, explained that shoppers are using a mix of online and in-store touchpoints to achieve their goals, which have been changed – likely for the long term – by the spread of the coronavirus. He cited a few statistics in support of this claim: 82% of people had changed their shopping habits since COVID-19 began; four in ten are purchasing items online that they would normally have acquired in a store; and 48% of first-time online shoppers prefer this channel to physical stores. Over half of consumers, continued Wagner, would like to spend less money when shopping, while one-third want to spend less time on this activity, around half want ways they can be more confident in their own decisionmaking, and 42% want shopping to be more enjoyable. Large numbers also want to minimize their exposure to COVID-19 when they shop, which affects not just their willingness to spend time in physical stores, but also levels of interest in services such as curb-side collection. The five omnichannel journeys In helping marketers navigate this changing environment, Wagner identified five omnichannel journeys in a session at SHOPPERxSCIENCE 2021, an online conference held by the Advertising Research Foundation (ARF), the trade body. 1) Webrooming, part one This is when people do their research online, figure out what they actually want to buy, and then go into a physical store and make a purchase. It helps them feel more confident that they’re making the right decision and also helps them feel they’ve saved money by checking out the best deals in advance. 2) Webrooming, part two A variation on journey one, this approach sees shoppers tapping away on their smartphones while they’re in a physical store, finding out more about a product online before they make the purchase in store. Again, this is about getting a good deal but also feeling confident that the purchase is the right one. “With shoppers unable to visit stores, webrooming is down across categories,” noted Wagner. 3) Showrooming, part one This is the approach that used to send retailers into a spin, as shoppers browsed in a physical store, touched and tested what was available, then whipped out their phone and made a purchase online, often from another retailer, simply because the online option was cheaper. It was – and is – all about saving money. 4) Showrooming, part two This version of showrooming is potentially less of a disadvantage to physical retailers: people are still touching and testing items in-store without making a purchase at the checkout but, in this instance, they’re leaving the store and buying online later. That might be about finding a better price but might also have more to do with reluctance to join a line or to carry the item home. They could well be buying from the physical store’s own website, too. “Showrooming behaviors have increased across beauty, household supplies, and food – with shoppers unable to find their favorite products in-store, they are heading online,” Wagner told the ARF assembly. 5) Buy online, pickup in-store (BOPIS) This approach has seen rapid growth during the pandemic, because it helps shoppers save time and addresses their safety concerns by minimising the amount of time spent in-store. Facebook’s research shows that, in mid-2020, it accounted for around 12% to 15% of all purchases made across a range of categories, from apparel and electronics to furniture and beauty. “BOPIS adoption has increased significantly in certain product categories,” explained Wagner. In the durable goods category, for instance, it has grown by more than 50%. Five tips for the future Despite the amount of browsing and buying that’s shifted online, there’s still a strong role for the store in people’s lives. Wagner pointed to Facebook research showing that over half of shoppers in mid-2020 said they missed shopping in stores, and 49% said shopping was one of the things that helped the world feel ‘normal.’ However, given the COVID-related constraints on shopping and the need to be cautious about exposure to the virus, it seems shopping has become less enjoyable. While, pre-pandemic, 42% of people said they liked shopping “to a considerable extent”, that proportion had dropped to 32% by August 2020. Looking ahead, Wagner outlined five ways in which retailers could maximise consumer engagement, loyalty and purchasing by optimising their omnichannel shopping options. 1) Use technology to aid discovery As browsing and product discovery moves online, brands should leverage technology to recommend items that meet shoppers’ needs in the moment. A study commissioned by Facebook found that two thirds of shoppers globally believe technology can drive tailored product recommendations, while three quarters say they get shopping ideas from Facebook apps. Moreover, two thirds agree that social media is as important as other sources of information in helping them make purchase decisions. 2) Make online shopping more seamless Wagner says that once people discover products they like online, they want to be able to buy them with the least amount of friction or fuss. Around half of shoppers in the GfK study said they wanted to be able to buy directly from a Facebook or Instagram post, or through instant messaging, and many also wanted to be able to pay without leaving a social media app. 3) Ease the pain Shifting from ‘real world’ shopping to e-commerce is not without its challenges, Wagner said, especially for older consumers who may have made the move out of necessity in the past year rather than pure choice. Keeping these shoppers happy and loyal means identifying what they’re struggling with or find to be off-putting, and removing these pain points. Newcomers to online shopping, for instance, are more concerned than experienced e-shoppers about the difficulty of assessing product quality, having too much or too little choice, things being out of stock, prices being higher, there being fewer promotions online, and about potentially inconvenient delivery and returns. 4) Innovate to serve a growing need for convenience Younger shoppers are on the hunt for convenient ways to shop – and to take possession of the goods they’ve bought While there’s widespread interest across age groups in ways to collect items or have them delivered, this is particularly strong among Gen Z shoppers, who want to know whether they can get curb-side pick-up, delivery to the trunk of their car, or to a locker. 5) Use live chat and messaging This is the online equivalent of face-to-face shopping in a store, and, again, is something that’s in particularly high demand among young consumers – namely, the ability to speak to someone directly and get an answer right away. Analysis by research firm Kantar for Facebook, for example, shows that of people who use Facebook’s platforms weekly, 40% are already using messaging services to contact businesses. About the author Jo Bowman Freelance Journalist jo@rjbmedia.net Jo Bowman writes on marketing and research for specialist magazines in Europe and Asia, as well as on broader business issues and trends. She has worked in Australia, Hong Kong and Italy, and is now based in the UK. © Copyright Ascential Events (Europe) Limited 2021 Ascential Events (Europe) Limited Americas: 229 West 43rd Street, 7th Floor, New York, NY 10036, United States - Tel: +1 212 201 2800 APAC: 5 Shenton Way, UIC Building #10-01, Singapore 068808 - Tel: +65 3157 6200 EMEA: 33 Kingsway, London, WC2B 6UF, United Kingdom - Tel: +44 (0)20 7467 8100 www.warc.com All rights reserved including database rights. This electronic file is for the personal use of authorised users based at the subscribing company's office location. 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