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November 2014

Overview
In the last five years, the retail industry has been primarily focused on driving digital growth. As important as that is, it is also critical not to lose sight of another very important channel—in-store.

The in-store experience is as critical as ever. 

With the abundance of information at their fingertips, shoppers search and gather as much knowledge as they can from the web before visiting a retailer in-store. And once they walk through that door, their expectations are high. Although most shoppers expect retailers to be attentive and experts on their product line, not all shoppers are alike. Research and shopping behaviors can vary according to what consumers purchase, past experiences and comfort level.

“Retailers that are prepared with a deeper understanding of how the in-store shopping experience differs for various customer types have a clear competitive advantage.”
               Glenn Marino, EVP and CEO, Payment Solutions, Chief Commercial Officer

Segmentation research has been used to identify shopper archetypes. Understanding these differences can help guide retailers when considering how to tailor their own in-store experience to engage customers in a more meaningful way. By developing strategies to reduce purchase obstacles in-store, retailers can make progress toward more sales and greater customer loyalty.

Study Background

The Synchrony Financial In-Store Shopper Segmentation Study—consisting of both qualitative and quantitative research—outlines the overall relative importance of understanding how customers look for and want to receive information during their buying process, specifically when it comes to the in-store shopping experience.

IN-STORE SHOPPER SEGMENTATION STUDY

Study conducted by Chadwick Martin Bailey on behalf of Synchrony Financial.

In-store Truths

Even though shoppers are not all created equal and thus should not be treated the same, there are some universal truths with regards to in-store shopping. These commonalities include:

Shoppers are looking for a no-hassle experience and great value.

• 62% of shoppers agree that, “If I have to go to a store, I want to get in and out quickly with no hassle.”
• 50% of shoppers completely agree that, “I will go out of my way to find a great price.”

Associate interaction is critical to delivering the best in-store experience.

Overall, shoppers expect associates to be knowledgeable about the products and services they sell, as well as friendly and helpful. The associates’ ability to distinguish between a shopper who wants/needs help and one that does not is critical. Shoppers say it’s important for the associate to:

In-store signage plays a key role in educating shoppers about the latest deals and promotions.

• 46% of in-store shoppers say it is very important for a store to have the “right amount of signage.”
• 6 out of 10 expect in-store signage to clearly communicate the latest promotions and deals.
• 68% agree that it is important that signage be easy to read and clearly state which products qualify for the promotions being communicated.

The most important in-store elements are:

• Helpful associates
• Easy store navigation
• Clear product details
• Clean store
• Easy return process

Shoppers want information on the store credit card benefits but do not want to feel pressured to sign up.

After a shopper has navigated through the store and narrowed their search, they then look for information on payment options.

53% say it is very important for an associate to be able to confidently speak to the basics of the store credit card program/offers.

56% say it is important to have at least basic store credit information on signage.

76% do not want to feel pressured to apply for store credit offers.

In the majority of categories, shoppers spent more than they intended.

Another consistent theme in the research was that
shoppers ended up spending, on average, more than they expected to spend.

This was often due to incorrect price assumptions, finding something they preferred that cost more, or increased buying power from using a financing promotion on a store specific credit card.

Introducing the in-store shopper segments

The study revealed that there are two main attitudinal dimensions where in-store shoppers tend to diverge. Those are attitudes around the role of the associate and the role of in-store signage; in particular new technology and digital signage.

Role of the associate

The role of the associate is one dynamic where shopper attitudes
start to diverge. Some shoppers expect the associate to be more
of a consultant where others want very little interaction. This white
paper will outline how expectations around associate interaction differ by shopper segment.

Role of in-store signage
In-store signage plays a critical role in the major purchase process;
however, expectations around the use of technology, amount of
signage, and information being conveyed varies by shopper segment.

Segment size varies by product category and will be outlined below.

Segment 1: Advice and Guidance Seekers

Who they are and what to expect