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U.S. Shoppers' "Want It Here, Expect It Fast" Mentality Impacts Non-Digital Retail Sales

Omnico Group's Latest Research Demonstrates How Long Checkout Lines Increase Checkout Attrition and Negatively Impact Customers Likelihood to Return


News provided by

Omnico Group, Inc.

Feb 25, 2014, 08:15 ET

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DULUTH, Ga., Feb. 25, 2014 /PRNewswire/ -- Revealing that market pressures for the digitalization of the retail sector are stronger than ever, global retail technology expert Omnico Group today released results from its latest national primary research campaign. Findings include more than 77 percent of Americans would be less likely to return to a store if they experienced long checkout lines, supporting the perception that consumers who "want it here" expect to get it fast.

The Omnico study looked at how U.S. retailers are currently offering consumer-facing technology to aid retail decision-making and improve the customer experience. It found that after eight minutes, Americans are likely to abandon the checkout line and leave the store with no purchase. Although more patient than their British counterparts, who leave after six minutes, Americans are more likely to never return to that store as a result of the negative experience than their British counterparts.

"Although we have known for some time that retailers who actively focus on preventing abandoned baskets and checkout attrition see compelling benefits to their bottom line, the impact of long lines on longer term customer loyalty is alarming," said Bill Henry, Omnico Group's chief executive officer. "The retail landscape is changing as more retailers move to an omni-channel's approach of embracing mobile POS technology.  These are powerful tools to improve the customer experience and retailer performance."

With 74 percent of shoppers in the study owning a smartphone, the study also looked at smartphone adoption and how mobile technology is changing shopping behavior.  It found that retailers need to bridge the gap between what consumers expect and what can actually be delivered.  Similarly, the report picks up on the current big themes of the modern retail debate such as whether to introduce line-busting mobile technology; how to deliver voucher and loyalty programs using the customers' smartphone; and whether to embrace show rooming.

The findings also highlighted the high cost to retailers in terms of sales lost thanks to long checkout lines resulting from too few registers and underscored the need for retailers to introduce digital solutions that nurture loyalty. 

"Customers want technology solutions that join up the channels and transform the customer experience," Henry said.  "Omni-channel solutions enable brick and mortar retailers to accelerate their growth in challenging conditions and provide new opportunities to win back customers from pure-play online shops. Retailers that embrace omni-channel technology and offer seamless customer journeys to the shopper have a very bright future."

A more detailed analysis of these results is available as a whitepaper. Some highlights include:

  • The top three technologies that will improve the average customer's in-store experience are self-checkout, free Wi-Fi and "click and collect" (order online, pick up in-store) technology.
  • Controlling for price and reward programs are the best to encourage Americans to be loyal customers. Coupons are also well received.
  • Millennials, between the ages of 25-34, lead the way in mobile use, particularly when comparing prices and shopping on competitive retailers' websites while in the store.

Notes to Editor

Omnico Group, analyzed data collected by US-based research agency Ideas Collide through both qualitative and quantitative research. An omnibus online survey of 1,000 U.S. adults 18 years of age and older, living in private households and evenly split among gender included five multiple choice questions as well as closed-ended questions designed to explore shoppers' attitudes towards queuing (register lines). In addition, 41 intercept interviews were conducted with store managers along Fifth Avenue in New York City. These interviews included a quantitative checklist to record the technologies currently in place within these retail locations. A full report is available on the Omnico website.

About Omnico Group, Inc.

Omnico Group helps businesses worldwide offer a complete retail experience, joining up stores, e-commerce and mobile, and providing a better understanding of the customer to drive engagement and loyalty. Bringing over 20 years' experience and forging the combined know-how of Digipos and Clarity, Omnico Group works with brands in the US such as Safeway, Catalina, Price Smart, Melrose Family Fashion and theme parks such as Six Flags to offer solutions that can be deployed rapidly and help to reduce total cost of ownership.

Omnico serves the complete retail market, from high street retailers to hospitality, leisure and entertainment businesses. With US office headquarters in Duluth GA Omnico has a presence in 28 countries and a turnover of over $100 million. For more information about Omnico, please visit the company's website www.omnicogroup.com, follow @omnicogroup on Twitter or watch http://www.youtube.com/user/omnicotv.

Media Contact: Linda Capcara

Email: [email protected]

SOURCE Omnico Group, Inc.

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