A new shopper research study conducted by parago
, a Lewsiville, TX-based company specializing in customized incentive and engagement solutions, finds that consumers can be persuaded to shop more both online and in stores with the use of incentives. The parago "2014 Shopper Study" shows that consumers are most motivated by convenience and price, and shows what types of incentives can be used to lure shoppers from online shopping to brick-and-mortar retail.
While online shopping and showrooming continue to cut into brick-and-mortar traffic and spend, the study found that consumers can be persuaded to shop in store, and that many are open to buying online and picking up their online orders in the store.
"Online retail is growing, but not as fast as offline brick-and-mortar is contracting," said Rodney Mason, CMO of parago. "Many customers who shop online don't come in store much, and they tend to expect greater selection, cheaper prices and free shipping, which erode margins already battered by price-match strategies. The good news for retailers is that shoppers are willing to change their behaviors in ways that are more advantageous to the industry. Shoppers just need -- and in most cases are not being offered -- the right incentives to do so."
Key finding of the study included the following:
Incentives accelerate buying online and picking up in store. Sicty-three percent of shoppers will do that at least a few times per year but 82 percent would consider doing so to receive a $10 repate on a $50 item.
Prepaid gift card rewards that can be spent anywhere are the top incentive for changing shopper behavior. Branding these gift cards with the store brand and coupling them with an offer drives significant double-digit spendback in a store.
The survey of 1,992 adults representative of the U.S. consumer population was conducted in July 2014.