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.

Sears improves home appliance shopping experience by connecting online shoppers with knowledgeable associates in store

New service offers personalized in-store consultative appointments

HOFFMAN ESTATES, Ill., 2015-10-23 — /EPR Retail News/ — Sears, a leading integrated retailer, has introduced “Meet With An Expert” – a free and first-of-its-kind service that improves the home appliance shopping experience by connecting online shoppers with knowledgeable associates in store. The new service is available for home appliance products in Sears stores nationwide.

Sears, which carries all top 10 appliance brands and has been home of Kenmore branded products for more than 100 years, understands how customers shop for appliances – the majority of whom research online prior to purchasing in store.

“Choosing an appliance is a big decision, involving many options,” said Leena Munjal, Senior Vice President, Customer Experience and Integrated Retail, Sears Holdings. “Meet With An Expert gives our members a personalized experience that builds on the research they’ve already done online. Our knowledgeable associate will know the appliances our member is interested in and offer advice specific to their needs.”

How it works:

  1. The member visits Sears.com, finds the appliances they’re interested in and clicks the “Meet with an expert in our store” link. The member selects their store, provides basic contact information, and a preferred appointment day – the request can be in the morning, afternoon or evening in a five-day timeframe.
  2. A Sears appliance expert (a knowledgeable Sears home appliance associate) from their local store calls the member back to set up the specific visit time. If the member has a schedule change, the representative will help them reschedule.
  3. On the appointed day, the member arrives at the selected store and goes to the marked Meet With An Expert spot in the home appliances department where their assigned appliance expert will be ready to help them compare models, answer their questions, and highlight product features.

Since launching buy online, pickup in-store 14 years ago, Sears has introduced a series of services that connect the online and in-store shopping experience. The new Meet With An Expert service joins a growing list of Sears’ convenient and time-saving integrated retail options created by Sears’ iRLabs team, including:

  • In-Vehicle Pickup, Return and Exchange in Five – a game-changer and retail industry first on this scale. Using the Sears or Shop Your Way mobile app members can pick up, return or exchange their purchases for free – guaranteed in five minutes or less – without ever leaving their vehicle.
  • Expanded Free Store Pickup – an online/in-store collaboration that allows members to pick up Sears.com or Kmart.com orders at any of each other’s stores – more than 2,000 locations total nationwide.
  • Shopping Recaps – in consultative departments like appliances, members can request an email that recaps information they discussed with a Sears associate in store and includes model numbers and other details. The member can pick up where they left off at their convenience later online.
  • Reserve It – a timesaving service that allows members to reserve apparel items online for them to quickly try on in store.

Meet With An Expert is currently available for the home appliance categories including refrigerators, washers and dryers, stoves, microwaves, dishwashers, vacuums, small kitchen appliances and more, from top brands like Kenmore. To learn more about Meet With An Expert, visitsears.com/expertadvice or view the informational video at https://youtu.be/sCvgE3cPHTA. Meet With An Expert is available in all stores with the exception of Hometown, Outlet and Puerto Ricolocations.

About Sears, Roebuck and Co.
Sears, Roebuck and Co., a wholly owned subsidiary of Sears Holdings Corporation (NASDAQ: SHLD), is a leading integrated retailer providing merchandise and related services and is part of Shop Your Way, a social shopping experience where members have the ability to earn points and receive benefits across a wide variety of physical and digital formats through shopyourway.com. Sears, Roebuck offers its wide range of home merchandise, apparel and automotive products and services through Sears-branded and affiliated full-line and specialty retail stores in the United States. Sears, Roebuck also offers a variety of merchandise and services through sears.com, landsend.com and specialty catalogs. Sears, Roebuck offers consumers leading proprietary brands including Kenmore, Craftsman, and DieHard – among the most trusted and preferred brands in the U.S. The company is the nation’s largest provider of home services, with more than 14 million service and installation calls made annually. For more information, visit the Sears, Roebuck website at www.sears.com or the Sears Holdings Corporation website at www.searsholdings.com.

MEDIA CONTACTS:
Brian Hanover John Arango
Sears PR Zeno Group for Sears
847-286-6080 312-396-9750
Brian.Hanover@searshc.com John.Arango@zenogroup.com

SOURCE Sears