The FINANCIAL — Recent Cisco research found that U.S. retailers have the ability to grow profits by more than $460 billion over the next 10 years by leveraging the Internet of Everything (IoE), and a new study shows retailers how to begin to capture that value. An emerging class of "tech-savvy shoppers" overwhelmingly looks for ways to use smartphones and the Internet to save time and money while shopping in stores, according to a Zogby Analytics poll commissioned by Cisco.
These tech-savvy shoppers represent nearly half of all Americans. They find it valuable when stores offer free Wi-Fi, apps for smartphones, the ability to order out-of-stock items while in a store and digital couponing. Most important, these shoppers are planning to make purchasing decisions based on the advanced online services offered by retailers.
More than 60 percent of tech-savvy shoppers said that they would be more likely to visit or shop at a store that offers smartphone apps and other in-store online services. And these shoppers have the money to spend. Nearly 30 percent of tech-savvy shoppers live in households that earned more than $100,000 per year – more than double the rate of all other shoppers, according to the report.
"Consumers want the best of both worlds this holiday season – they want the social aspects of in-store shopping coupled with the benefits enabled by the Internet of Everything," said Blair Christie, Cisco senior vice president and chief marketing officer. "This study shows that retailers who make investments in advanced technologies will be rewarded by tech-savvy shoppers with a larger discretionary income as well as build increased brand loyalty with young shoppers," Christie added.
The most tech-savvy of all in-store shoppers are the first generation of smartphone natives: 18-to-24-year-olds. The Zogby poll found that more than 80 percent of 18-to-24-year-olds own a smartphone, yet more than 75 percent plan on doing the majority of their holiday shopping at retail stores, according to the study.
These consumers in particular want to combine the power of their smartphones with their desire to shop in stores. More than 95 percent found it valuable to receive holiday discounts/coupons via text or smartphone apps, and to use their smartphones to quickly check prices and order out-of-stock items with free delivery when shopping in a physical store.
However, retailers are currently missing out on an important way to connect with this coveted demographic, as only 29 percent of young consumers have used a retailer's app on their smartphone. So, why such a small adoption rate from these uber-techies? Almost 40 percent reported that they didn't even know that retailer smartphone apps existed. This implies that retailers have a significant opportunity to increase awareness of or create apps, mobile websites, and other smartphone offerings and to connect with shoppers through technology while they are in the store, according to the study.
Discussion about this post