Here at Leapfrogg, we have a panel of more than 800 premium retail consumers that we engage with on a regular basis to help us understand customer needs and expectations from the brands and retailers they buy from.
Every month, we question them on a range of areas from buying behaviours and brand opinion, to emotional purchase triggers and their recent shopping experiences. The Insight Edit is our weekly bite size edit of the insight we gain from our panel in our search to truly understand the mind of the premium customer.
With the wealth of large established retailers in every sector online, it has become increasingly difficult for new brands to break through and compete. Here at Leapfrogg, we often work with start-up brands and helping them find their voice and place against the likes of ASOS, John Lewis and Amazon etc. and we wanted to understand why consumers might choose shop with a new retailer or brand or go elsewhere.
We asked our panel their thoughts on shopping with new brands and retailers and found that a large percentage of our panel only shop with established retailers they have shopped with before.
We then asked the panel what their biggest concerns are when shopping with a new brands and retailers.
The worry of payment security was felt to be the biggest barrier with 54.9% of stating that this would stop them purchasing from a new retailer. This drives home the need for new brands and retailers to make their security and fraud precautions clear on their website, and build up reviews from customers who have had a secure purchases. This information will reassure potential customers that they can shop safely.
Following payment security, the next biggest barrier was worries around the level of customer service the customer will receive if there are any problems (16.9%). A key piece of advice for new brands is to ensure they are offering the exceptional customer service right from the start.
A personalised service is often easier for new brand as they have a smaller pool of customers to communicate with. Invest in this area right from the start and give customers an exceptional experience that they will want to shout about!
Ability to return an item was the next biggest issue with 14.8% of the vote. Ease of returns plays a huge part in the creating a good customer experience retailer, so again, make sure you invest in the infrastructure to provide a quick and efficient returns process for your customers.
If the above are the barriers to purchasing – what will encourage and inspire consumers to buy from a new brand or retailer?
Our survey found that a new brand or retailer that can offer products that can’t be found elsewhere, will stand a much better chance of success in the short term.
If a new retailer is unable to offer exclusive products then make the experience you offer exclusive. Invest in creating the ultimate shopping experience for your customers that can’t be found elsewhere!
28.8% of consumers are drawn to new retailers by price and special offers. This may be the case, but it is dangerous to go into the market by discounting as it will be very difficult to sell products at full price in the future.
Our advice to any new brands or retailers entering any sector is to differentiate yourselves, shout about your payment security and ensure your customers’ first experience shopping with you is amazing!