Here is some information that CRM pros might find useful: Younger consumers
are relatively accepting of e-commerce personalization strategies.
Members of their parents" generation, on the other hand, prefer
traditional advertising.
Women are interested in technology only if
it makes their shopping experience more convenient. Men, however, tend
to be interested in technology for technology's sake. Older people
prefer information in verbal or written form. Younger people, by
contrast, are more interested in visual information.
Are you curious to know more? Probably so, but this stuff does not come
from any market research firm. This kind of data requires primary
research -- with precise methodologies and sophisticated statistical
analyses. It often requires collaboration between academic specialists
and industry experts. That is why the Indiana University Center for
Education and Research in Retailing is continuing its research into
customer behavior.
Raymond Burke, director of the Center's Customer
Interface Lab, told CRMDaily.com that the Center was established four
years ago with funding from a collection of retailers, including Sears and
Target Stores, and companies like KPMG.
Ideal Shopping Experience
In a recent survey conducted in conjunction with KPMG, the Center
attempted to describe the "ideal shopping experience" from the point of
view of various segments of the consumer audience. Researchers asked
shoppers to evaluate 128 characteristics of the shopping experience,
including 58 online and 70 in-store attributes.
When prompted to rate shopping elements on a five-level scale ranging from "must
have" to "prefer not to have," consumers were adamant
about several important customer service offerings of online shopping.
For instance, a majority of respondents rated toll-free telephone access
to a customer service representative and e-mail order confirmation as
"must haves."
The researchers found that the ideal shopping experience varies by product
category. Consumers shopping for appliances and electronic equipment
require in-depth facts and figures as they consider purchases. More than
30 percent of furniture shoppers prefer a three-dimensional visual
representation of the item on the Web site so they can view it from all angles.
Multichannel Customer Experience
When offered the option of obtaining information and service through
various channels, the Center's study showed that customers will choose
different channels for different purposes. For example, 90 percent of
respondents said they prefer to use the Internet to research product
information. Fewer than 10 percent, however, said they like to use a cell
phone or mobile handheld device to do so.
The study also found that 59 percent of respondents prefer to
receive a purchased product either through the mail or by
picking it up at a store. If a product must be returned, 39 percent said
they would like to have the choice of returning it through a store or
through the mail.
This multichannel preference does not hold for
frequently purchased items -- and in categories like groceries and health
and beauty aids, the researchers found that consumers prefer one channel only.
Weeding Out Ideas
Burke told CRMDaily that his lab conducts four different kinds of
research. The first, and least flashy, is background -- aka secondary --
research. In this stage, investigators look at what retailers are
doing and how they are doing it.
Then, the Center might put together a survey like the one
discussed above. This is a second layer of investigation, in which
researchers might find promising trends to be explored further.
A third stage of research brings consumers directly into the laboratory.
Investigators observe them interacting with various technologies, such as
speech recognition software and personalized online interfaces. At this
point, researchers also might record the reactions of focus groups.
Finally, the Center might partner with a retailer to do field research
on a particular facet of the customer relationship. For instance, a
company might wish to study the impact of its point-of-sale computer
system. Since mistakes at this stage of the game can be costly both in
dollars and in researchers" time, Burke noted that ideas are fairly well
refined by this point.
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