Klarna UK Consumer Survey: Retailers must develop emotional intelligence to win over new generation of online shoppers

Millennial generation three times more likely to feel excitement while adding items to their online basket, compared to older shoppers

Negative emotions also play a role in decision-making – with millennials more than five times as likely as over 55s to feel guilt at the point of payment

LONDON, 2017-Oct-06 — /EPR Retail News/ — Retailers must develop emotional intelligence (EQ) and alter their customer journey accordingly to nudge shoppers to a better online experience

A consumer research study recently put out by Klarna UK also shows that 16 – 34-year olds are more likely than older generations to be influenced by emotional factors when shopping online.

The millennial emotional rollercoaster of the millennial customer journey

For the millennial generation – the largest group of online shoppers – the traditional linear customer journey is more akin to a rollercoaster, marked by highs and lows of emotion. According to Klarna UK’s consumer research, millennials experience higher levels of anxiety, impulsiveness and impatience than their older counterparts. Klarna UK’s consumer research shows two thirds (68 percent) of millennials reported feeling excitement when adding items to their online basket, compared to less than a quarter (24 percent) of people over 55.

The flip side of this excitement is lows caused by anxiety and guilt, with 52 percent of millennials saying that they worry that they can’t afford the purchase during checkout, compared to only 16 percent of over 55s. One in five millennials have abandoned a purchase because of worry about regretting it later.

Increasing merchant EQ

The extremes of emotion experienced by millennials must be navigated carefully so retailers can effectively guide this group through the purchase process.

Allowing shoppers to try before they buy is an easy way to build brand loyalty – findings from Klarna UK’s consumer research shows that 20 percent of millennials would feel less guilty if they were offered deferred payment options, and one in five would be more likely to complete a purchase if they knew they could spread the cost over time. It’s vital that merchants offer these choices at the checkout – so millennials can be reassured a transaction is achievable.

The buzz of the basket

The consumer research debunks the myth that items added to a basket show a clear intention to purchase. In fact a significant 89 percent of millennials use the basket as a tool to review costs, while more than three quarters often use their basket as a wish list, compared with only 29 percent of over 55s. Meanwhile, nearly three quarters (74 percent) admit to indulging in ‘buzz browsing’ – adding items to a basket with no clear intention to buy.

Crucially, 58 percent of millennials are more likely to complete a purchase if an online offer is going to expire, so tapping into this fear of missing out by offering time bound incentives and educating shoppers about pay after delivery or consumer finance options can encourage customers to complete their purchase. Simple website features such as showing stock levels and displaying expert advice from social influencers can all help retailers nudge this important group of consumers to checkout.

Luke Griffiths, UK General Manager, Klarna, said: “Our insight proves that the online customer journey is more complex than ever, with shoppers being driven by emotional factors. Retailers must develop EQ to deliver a positive online customer experience that smooths the highs and lows.

“Payment is still a sticking point for many consumers – with one in four feeling frustrated when the checkout doesn’t remember their details and one in four millennials saying that they are more likely to complete a purchase if one-click payments are in place. Competition in the marketplace is fierce, winners will be retailers that build shopper affinity by offering a fast, easy checkout with flexible payment options.”

And new analysis by the University of Reading, commissioned by KLARNA UK, offers advice for retailers on how to engage hearts as well as minds to reach today’s online shopper, while offering academic insight into future commerce trends.

Dr. Julia Vogt, assistant professor in Psychology at the University of Reading, commented: “Applying behavioural psychology can help us understand what consumers love and hate about online shopping. Emotional factors can cause hesitation in the process which can derail a purchase right up until the final payment. By understanding the role of heart as well as the head, retailers can create effective customer engagement strategies to nudge consumers to conversion.”

Visit www.klarna.com/uk/emotion to find more data and insight, including:

  • Analysis and advisory report for merchants – Emotional eCommerce – from Klarna UK and Reading University
  • Infographics on the generational and gender differences of online shoppers
  • Infographic on millennial emotions at each stage of the online buying journey
  • Animation summarising millennial shopping behaviour and advice for merchants

 

About Klarna

Klarna is Europe’s leading payments provider, that aims to make the payment process simple, smooth and safe for customers and merchants. The company, founded in 2005, was recently named as one of the top disrupter companies in the world by CNBC. Klarna works together with 70,000 merchants to offer payment solutions to more than 60 million users in Europe and North America. Klarna has 1,500 employees and is active in 18 countries.

Disney named the “Most Intimate Brand” among millennials in MBLM’s Brand Intimacy 2017 Report

GLENDALE, Calif, 2017-Jan-14 — /EPR Retail News/ — Disney has been named the “Most Intimate Brand” among millennials in MBLM’s Brand Intimacy 2017 Report—the largest study of brands based on emotion—an increase from MBLM’s 2015 list, on which Disney was ranked No. 6. The full report will be released on January 17, 2017.

In compiling its study, MLBM looked at responses from 6,000 consumers and 54,000 brand evaluations in the U.S., Mexico and UAE to understand better how emotions help to drive the relationship between consumers and brands, as well as to measure which brands are most successful at creating these strong bonds.

The Branding Agency studied the emotional connection between consumers and brands, as well as the character and strength of the bond. Among other factors, the study took into account the nostalgia consumers have for a brand, how the brand exceeds consumer expectation, and the degree to which consumers feel connected and committed to it.

“Disney resonates with this age group because they grew up with the brand. It has kept up with their changing interests and now includes popular franchises like Star Wars and Marvel. Disney is also a mainstay for young families,” stated Mario Natarelli, MBLM’s managing partner, adding that the strong representation by media and entertainment companies in the upper ranks of the list reflect a “prevailing mood of escapism and the need for respite” among the millennials surveyed.

Source: Disney

ICSC survey: Consumers will visit a shopping center on average 6.5 times a week this holiday season

ICSC Consumer Survey affirms significance of Omni-channel experience this holiday season: Millennials between the ages of 18-24, visit shopping centers 10-times a week.

NEW YORK, 2015-12-9 — /EPR Retail News/ — With the holiday season well underway, consumers will be flocking to their local shopping centers for all the essentials they need to make their season bright according to a consumer survey by the International Council of Shopping Centers (ICSC).  Between now and Christmas Day consumers will visit a shopping center on average 6.5 times a week for goods and services spending on average $147.00 a week. This translates into a whopping $4.3 billion dollars a day in sales or $30 billion dollars a week in sales.

“Whether it’s to find the perfect gift, take the kids to see Santa, support a charitable activity, get the ingredients needed for the holiday cookies, or simply enjoy a meal with friends and family shopping centers are truly the hub of the holiday shopping season,”  asserted ICSC President and CEO, Thomas McGee.

While mobile technology has greatly changed the way consumers shop, what has remained constant is the fact that consumer do the vast majority of their shopping at shopping centers with 83 percent of U.S. consumers visiting a shopping center at least once a week, including 92 percent of the most tech-savvy consumers, 18-24 year olds. These young consumers visit shopping centers on average 10.8 times a week.

“Although it may seem counter-intuitive that the most wired consumer, Millennials between the ages of 18-24, spend the most time at shopping centers, today’s shopping centers are more than places to simply buy goods and services as they have incorporated a multitude of dining and entertainment venues into their tenant mix. Combined with the fact that shopping is no longer a choice between clicks and bricks but rather an omni-channel journey that often leads to fulfillment at a physical store, it is not surprising that consumers visit shopping centers so often,” explained Mr. McGee.

An earlier survey conducted by ICSC over the Black Friday weekend substantiates the importance of the physical store to the omni-channel shopping experience. The survey found that 40 percent of Thanksgiving Day shoppers made a purchase online from a retailer with a physical presence and picked up that item in store. Nearly one-third (32 percent) of Black Friday shoppers did the same, which gives a combined 34 percent for both days. More importantly, about 6 in 10 shoppers bought more items once on the premises.

One of the reasons for the high in-store conversion rates could be shoppers’ online research prior to their visits with slightly more than two-thirds (68 percent) of these shoppers who purchased in store researched online before visiting the location. Technology has altered in-store behavior as well. On Thanksgiving Day and Black Friday, about 62 percent of shoppers used their smartphones or tablets while in stores for shopping-related purposes. Usage is identical by gender and about the same by income group but varies widely by age. This use ranges from 78 percent among 18-24 year-olds to 32 percent for those 65 and older.

The top reasons these shoppers gave for in-store mobile use were to:

  • Compare prices (33 percent)
  • Check availability (23 percent)
  • Get digital coupons (21 percent)
  • View ratings (18 percent)
  • Email or text friends and family for opinion (18 percent)
  • Buy items online while in-store (18 percent)

These figures demonstrate that the use of smartphones and tablets is already well integrated into consumer behavior and the overall shopping center experience. Mobile technology users employed their devices not just for comparison and research purposes, but also for affirmation of their buying inclinations. An astounding 93 percent of those shoppers who used their mobile device in store made purchases. “Overall what our research confirms is that today’s tech-savvy consumer is more knowledgeable than ever about the goods and services they desire. Armed with this information, consumers’ holiday shopping journeys are productive and efficient with the shopping center positioned at the heart of their total experience,” Mr. McGee noted.

Founded in 1957, ICSC is the global trade association of the shopping center industry. Its more than 70,000 members in over 100 countries include shopping center owners, developers, managers, investors, retailers, brokers, academics, and public officials. The shopping center industry is essential to economic development and opportunity. They are a significant job creator, driver of GDP, and critical revenue source for the communities they serve through the generation of sales taxes and the payment of property taxes. These taxes fund important municipal services like firefighters, police officers, school services, and infrastructure like roadways and parks. Shopping centers aren’t only fiscal engines however; they are integral to the social fabric of their communities by providing a central place to congregate with friends and family, discuss community matters, and participate in and encourage philanthropic endeavors. For more information about ICSC visit www.icsc.org and for the latest news from ICSC and the industry go to www.thecenterofshopping.com.

SOURCE: International Council of Shopping Centers
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ICSC survey: Millennials between the ages of 18-24 visit shopping centers 10-times a week

ICSC survey: Millennials between the ages of 18-24 visit shopping centers 10-times a week