1、Retail reimagined: The new era for customer experience August 2020 2PeriscopebyMcKinsey In a matter of 90 days, we have vaulted forward ten years in US e-commerce penetration. Immersed almost exclusively in the immediacy, convenience, availability, and safety of digital experiences for those twelve

2、weeks, consumers reset their expectations and preferences, and forced retailers to change their trajectory, priorities, and operating model. Yet even as an economic downturn has put increased pressure on retailers, this generation- shaping event has opened up entirely new fronts in the competition f

3、or customers. McKinsey research has shown that in past recessions, companies that invest in and deliver superior customer experience during a downturn emerge far stronger than their peers once the economy rebounds, producing shareholder returns three times larger than average. To help retailers prio

4、ritize these efforts, Periscope by McKinsey surveyed more than 2,500 consumers in the US, the UK, France, and Germany to understand how consumer behavior is changing. We compiled this research both prior to and during the shutdowns, looking at what changed and what trends will likely stick in the ne

5、xt two months. Several core themes have become evident among consumers: a flight to online and omnichannel, a shock to loyalty, and convenience redefined with technology. The key highlights of our findings appear in the following pages. Aamer Baig, Bryce Hall, Paul Jenkins, Eric Lamarre, and Brian M

6、cCarthy, “The COVID-19 recovery will be digital: A plan forthe first 90 days,” May 2020, McK. Richard Dobbs, Tomas Karakolev, and Rishi Raj, “Preparing for the next downturn,” April 2007, McK. The COVID-19 pandemic is first and foremost a global humanitarian crisis that has overstretched health syst

7、ems, challenged governments, and upended lives and livelihoods. As the response and recovery to the pandemic continues, it has become clear that the crisis has also ushered in a new reality for consumers and retailers. The blow has been swift and vast, upending lives and livelihoods and upsetting ec

8、onomies. Some of the most dramatic effects have been to consumer behaviorhow people buy, what they buy, and where they buy it. In a matterof 90 days, we have vaulted forward 10years in consumerand business digital adoption Executive Summary US Respondents: 1,014 France Respondents: 512 Germany Respo

9、ndents: 527 UK Respondents: 504 46% 44% 32% 38% During the last 2 months, when shopping for a specific category or product, have you switched from brands or retailers where you previously shopped? Switching behavior 3PeriscopebyMcKinsey An end to normal shopping decisions 40% of respondents said the

10、y tried new brands ormade purchases with a new retailer During the shutdown, with normal habits and routines knocked off course, consumers changed the way they made purchasing decisions. In the four countries we surveyed, 40 percent of respondents said they tried new brands or made purchases with a

11、new retailer. This was especially prevalent in the US, where 46 percent of consumers made a switch. 4PeriscopebyMcKinsey US Respondents: 619 Germany Respondents: 292 UK Respondents:314 France Respondents: 317 51% 41% 48% 36% 46% 45% 52% 45% 27%22%21% 21%21%19% 19%15%14% 26%19%18% Reasons for switchi

12、ng brands/retailers during shutdown While switching, you have shopped more from retailers/brands that. Other answer choices included: special hours for high-risk groups. The importance ofthis choice remained below 20% across regions. Offer lower prices Offer better price/value ratio Support employee

13、s Repurposing facilities Offer relevant promotions and messaging Offers ways to maintain social connections Donates to COVID-19 relief efforts Communicates in preferred channel In a moment of great uncertainty, ratherthan sticking to familiarity and brands they had used, consumers did the opposite.

14、This had a lot to do with competitive pricing, what was in stock, and how brands responded during this big moment. For instance, one ofthe biggest drivers for abandoning loyalty during the shutdown was items being out of stock. Shoppers were also drawn to brands or retailers that supported their emp

15、loyees during the pandemic, such as by increasing their wages, giving extra sick leave, or paying employees for lost wages. In Germany and the US, consumers also switched to brands and retailers that repurposed theirfacilities to help slow the spread ofthe virus as well as those that led socially re

16、sponsible COVID-19 initiatives. The North American apparel company Lululemon, for instance, responded to the crisis by setting up a $2 million financial assistance fund for brand ambassadors who own a fitness studio. In the US, the Midwestern grocer Hy-Vee partnered with DoorDash to offerfree grocer

17、y deliveries to senior citizens, expectant mothers, and those considered at high risk for COVID-19. We see such purpose and branding fundamentals as an increasingly important element for driving future growth. 5PeriscopebyMcKinsey New e-commerce experience expectations As expected, e-commerce spendi

18、ng experienced a major boost during the shutdowns even as overall spending went down. In the US, it was up more than 30 percent from the beginning of March through mid-April, compared to the same period the previous year. In all four countries surveyed, we observed higher shopping activity in severa

19、l categories during shutdown. Categories with the biggest uptick were apparel (in the US and UK), childrens products (US, UK, Germany), beauty (US), and grocery (US). Some pre-crisis shopping features continued to be important, such as free delivery and returns as well as fast delivery (one ortwo da

20、ys). But a number of other attributes skyrocketed in importance during the crisis. The need for informative product descriptions and clear product images at a time when consumers couldnt see, feel, ortest products in a store ranked as one ofthe top three factors for a great online browsing experienc

21、e in all the countries we surveyed, increasing in importance by 12 to 23 percent, from pre- to post-shutdown. Quick website loading also became critical. As millions of consumers started spending so much of their lives online, they became even less tolerant of sites or apps that were slow to load or

22、 unresponsive. The importance ofthis factor rose between 10 to 15 percent, with UK shoppers least tolerant of slow sites. As brands vie for consumer attention in increasingly competitive digital environments, it is more important than ever to build real engagement with customers and offer real value

23、. Nike China, for example, activated its digital community by offering virtual workouts and saw an 80 percent increase in weekly active users of its app. Market research firm Rakuten Intelligence 6PeriscopebyMcKinsey Clear description and images 47 70 23% Works fast/ loads quickly 42 57 15% Product

24、reviews 33 52 18% Visually appealing 24 33 9% Easyto navigate 41 45 3% Easyto navigate 40 49 10% Product reviews 39 42 3% Works fast/ loads quickly 29 41 12% Clear description and images 38 51 13% Easyto navigate 43 42 -2% Clear description and images 43 56 13% Works fast/ loads quickly 39 53 15% Vi

25、sually appealing 17 30 13% Product reviews 41 45 4% Clear description and images 45 57 12% Product reviews 37 43 6% Works fast/ loads quickly 32 43 10% Availability/ stock issues N/A 37 N/A Availability/ stock issues N/A 30 N/A Easy to navigate 35 54 19% Great online browsing experience US Responden

26、ts: 922 Germany Respondents: 464 UK Respondents:478 France Respondents: 459 1st run: Think about browsing/researching products in the online stores or mobile apps in the last 3 months. In your opinion, which factors create a great online browsing experience? 2nd run: Think about browsing/researching

27、 products in the online commerce sites in the last 2 months. In your opinion, which factors create a great online browsing experience? Other answer choices included: customer service phone/email, recognize me as returning user, product recommendations, consistent across channels, product videos, vir

28、tual sampling/testing, other. The importance ofthese choices remained below 20% across regions. Percentage point change values may have -/+1pp error because of rounding 1st run early March 2020 2nd run earlyJune 2020 7PeriscopebyMcKinsey 58 55 Free delivery and return -3% Range of payment options 45

29、 38 -7% Fast delivery 41 30 -11% Seamless purchase/ checkout N/A 27 N/A No-questions- asked return policy N/A 39 N/A 62 60 Free delivery and return -3% 45 49 Fast delivery 3% 39 38 Loyalty card offers -1% 28 27 Fast checkout -2% 23 25 Ability to save basket 2% Great online purchasing experience Free

30、 delivery and return 67 65 -2% Free delivery and return 63 62 -1% Fast delivery 38 41 3% Fast delivery 41 48 6% Loyalty card offers 37 28 -9% Fast checkout 34 27 -6% No-questions- asked return policy N/A 25 N/A Loyalty card offers 34 28 -6% Seamless purchase/ checkout N/A 27 N/A Range of payment opt

31、ions 28 24 -4% US Respondents: 922 Germany Respondents: 461 UK Respondents:478 France Respondents: 459 1st it also gives retailers access to valuable data that can feed into personalization algorithms or be used to optimize prices and promotions. Stores can also optimize their experience not just fo

32、r consumers, but for the growing number of online order pickers, for example by featuring “fast zones” of popular online items at the front of the store. Yet this store of the future cant wait until tomorrow. Retailers should consider moving quickly to start reinventing the customer experience now.

33、Consumers have been wrestling with uncertainty through the COVID-19 crisis. But their expectations for their retail experienceboth online and in-storecontinue to be high. Retailers that can adapt quickly enough will be well positioned when the recovery comes. 18PeriscopebyMcKinsey About our surveys

34、In early March, Periscope by McKinsey fielded consumer surveys across the US, UK, Germany, and France with more than 2,500 consumers to understand what they value most in digital and in-store experiences, as well as among the retail technologies that tie the two together. To see the impact of COVID-

35、19 on consumer preferences and behavior, the survey was repeated in mid-June. The surveys were conducted online in local languages. In each country, results are sampled and weighted for a representative balance of the consuming class, based on variables including age and socioeconomic status. About

36、Periscopeby McKinsey Founded in 2007, the Periscope by McKinsey platform combines world-leading intellectual property, prescriptive analytics, and cloud-based tools with expert support and training. It is a unique combination that drives revenue growth, both now and into the future. The platform off

37、ers a suite of Marketing & Sales solutions that accelerate and sustain commercial transformation for businesses. Periscope leverages its world-leading IP (especially from McKinsey but also from other partners) and best-in-class technology to enable transparency into big data, actionable insights, an

38、d new ways of working that drive lasting performance improvement and a sustainable 27% increase in Contributors: Brian Elliott, Sajal Kohli, Kelsey Robinson, and Jamie Wilkie return on sales (ROS). With a truly global reach, the portfolio of solutions comprises Insight Solutions, Marketing Solutions

39、, Customer Experience Solutions, Category Solutions, Pricing Solutions, Performance Solutions, and Sales Solutions. These are complemented by ongoing client service and custom capability-building programs. To learn more about how Periscopes solutions and experts are helping businesses continually dr

40、ive better performance, visit McK or contact us at contactperiscope-. Kelly Ungerman Drives transformations for sales and marketing organizations byfinding long-term potential. Brian Ruwadi Advises large-scale performance transformations that drives growth. Eric Hazan Brings extensive knowledge of strategic marketing and digital transformations. Lars Fiedler Brings innovative marketing solutions and strategies to companies across B2C sectors. The authors