Research commissioned by Webloyalty looks at the impact of mobile on multichannel retail. This section looks evolution of the consumer.

1. The evolution of the consumer
Over the last few decades the emergence of a multitude of new channels has played
directly into consumers’ hands giving them the opportunity to shop how, when and where
they want
The evolution of the consumer and the drivers
Over the past 20 years consumers have evolved and adapted to new methods
of shopping and interacting with retailers. Developments have been fast and Drivers Pre 1990’s
changed the retail landscape so dramatically that the days when the average
consumer would just use a physical store are a dim and distant memory. Traditional shopper 1990
The first challenge to the store came from the internet. Online saw rapid
growth in the noughties as consumers gained confidence in the channel and it
The Internet
proved itself as an effective tool for research and information gathering. As
internet penetration increased and as security made people more confident in Online shopper 1999
making purchases the influence of the internet as a transaction channel grew.
As the internet became more influential it redefined the meaning of Information
convenience and choice in retail. The internet today has moved well beyond
just a convenient channel for research. Today, websites interact more with Multichannel 2008
consumers through adopting social features from websites such as Twitter and
Facebook. This has made them an important source of inspiration and ideas.
Convenience
Retail is now a multichannel environment in which the consumer has an
enormous choice over where to undertake different aspects of their shopping.
To a degree the theme today is very much about the channels coming Social 2010
together. Services such as click and collect and order in store for home
delivery are becoming more popular and improving convenience for
multichannel shoppers.
m-commerce
The downside of this is that consumers are increasingly demanding a seamless Future
and consistent shopping experience, often requiring a more personalised level
of service. Delivering on such demands is far from easy for retailers. 2020 and
beyond
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2. Consumers use multiple channels
Consumer shopping patterns have evolved and now multiple channels are used as part of
the purchasing process
Traditional channels continue to play a pivotal role at all stages of the The percentage of consumers using various channels at any
purchase process. Indeed, almost 93% of customers regularly visit physical
stores; and a majority of consumers still use stores for the act of buying. stage of the purchasing process
For many, using catalogues combined with physical stores was the first Traditional
experience of using multiple channels and the catalogue remains influential retail 92.9%
today. This is especially so when it comes to browsing and ideas gathering.
Retailers like Jack Wills and White Company have strong catalogues that help
to inspire consumers and supports both the brands and physical stores.
Physical shops
32.2%
Online shops are the most commonly used channel with just over 95%
shoppers regularly using the internet for any stage of the purchasing process.
Online is most frequently used in combination with other channels. For 53.9%
23.8% Newspapers 7.8%
example, a large number of consumers research on the internet and then buy
in store; others prefer to order online and collect in store through click and & magazines
collect type schemes. John Lewis has seen rapid growth in their click and Catalogues
collect offer since its initial launch. Retailer Telephone/
magazines call centres
With consumers now used to shopping online and using multiple channels
mobile commerce is growing in influence. Although used by 52% of 85.1%
consumers, this number is rising strongly and over the next five years we
expect around 80% of the population to use mobile as part of the purchasing 95.2%
process. Internet sites
Online shops
Physical stores remain the central hub of most multi
channel businesses. Online drives the innovation and m-
commerce is emerging as the channel that keeps 52.0%
everything connected.
The Future Mobile
8 commerce

3. New channels create new shopping experiences
M-commerce gives the consumer information on the go and evokes a different kind of
shopping experience
The smart phone is empowering consumers by giving them instant
access to information while they’re ‘on the go’
If it is about anything, m-commerce and smart phone technology is about empowering customers and
about giving them a more engaging shopping experience.
Price comparison
Applications like RedLaser allow customers to scan in a barcode and access detailed product
information on the fly. Importantly, the details include price comparisons which means a consumer
standing in store can see where the item is also available and at what price it is being sold. This can be
combined with GPS location data meaning that consumers are just shown retailers in the vicinity. Such
tools bring a dangerous (for the retailer) level of price transparency to the market.
Location
Through applications such as FourSquare, shoppers can ‘log in’ when they visit stores. This potentially
enables retailers to target them with special offers. Other applications, such as Voucher Cloud, allow
consumers to search for special deals and offers in their current location. Taking this a step further,
online maps can be used to help the consumer find the location of the nearest store and obtain
directions, but also to find a product’s specific location within a store.
Reviews and Opinion
As sites such as Amazon and iTunes have proved, consumers often enjoy giving product reviews and
many now see this as an integral part of the shopping process. In turn, this feedback enhances the
buying decisions of other consumers.
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4. The future of shopping trips
M-commerce technology enables consumers to have a personalised shopping experience,
mobile phones increase social interaction between the consumer and the retailer and can
act as a self service tool
A future shopping trip
The diagram shows how a future shopping trip,
involving the use of a physical store, may look
Online In-store
in the future
Customer logs into
Research products, availability Message from retailer store, receives
Find product in a shop
and prices online with recommendations update of deals and
personalised product
Mobile used to scan products suggestions
Product selection and details
for price comparison and
sent to mobile phone
product information
Customer reviews
Go to shop to view the product Customer locates Customer finds online
product and asks for
nearest shop with best is cheaper, uses mobile
opinion
price and availability to go online and buy
Order product in store and using GPS map the product
track delivery
Physical stores are still a vital channel for retail. However, the role of the store is changing
and, today, is much more variable than it was in the past. It is vital that retailers understand
how their stores fit into the whole purchase decision making process and, indeed, Mobile used to reserve item at
understand the role they play in consumer’s consumption experiences. chosen store
Mobile used to download or
One of the keys to ensuring the continued relevance of the store is to make sure it is
redeem mobile coupon
embedded within the new processes mobile technology is enabling. For example, in large
stores shoppers should be able to use their phone to locate particular products. Equally, Once payment is made,
retailers should encourage consumers to scan information or barcode tags next to customer receives mobile
products to access more information about a particular product. coupon via text to redeem
against next online purchase
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