‘This is age of smarter consumers’

By Mia E. Abellana

Wednesday, February 1, 2012

WHEN it comes to purchasing products, most consumers trust the feedback of their family and friends rather than trust the claims of their local retailer.

A 2010 IBM Institute for Business Values study done on consumers from developed and emerging markets showed that only 18 percent of consumers would trust the word of a retailer while 45 percent believe in honest feedback from their family and friends.

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IBM Asean retail industry manager Richard Moy, who presented the figures to reporters yesterday, said retailers can learn a lot about what consumers want with technology. He said retailers can benefit from the information they gather.

Social networks

“This is the age of the smarter consumer. Consumers these days are instrumented, interconnected and intelligent,” he said.

He said 26 million Filipinos are active users on Facebook, comprising 26 percent of the population, while two million in the country are users of Twitter and send some of the 95 million tweets sent globally each day.

Moy said social media trends have also changed how e-commerce is defined. In its early days, e-commerce meant using the Internet to make transactions.

These days, Moy said e-commerce is the journey a consumer makes from learning about the product until making a decision whether to purchase it or not.

For retailers, the challenge is how to respond to such a market.

He noted that consumers want to be served, listened to, known and empowered. “If you notice, there is no ‘sell to me’ here.”

To adjust, Moy said retailers should be able to understand that “the future is digital.” He pointed out that users of devices grow each year and that mobility grows 92 percent globally, which means more people having access to tablet computers and smartphones and getting their information instantly.

He said retailers should be able to use technology to reinforce their brand strategies and know which type of technology their customers prefer to use. They should also be able to evaluate new technology and determine how to use it.

He said retailers should also realize that social media is an important tool in finding out who their customers are. He showed that the participants of the study took opinions of their family and friends seriously when deciding on purchasing grocery items, apparel, personal care, home decor, appliances, consumer electronics and luxury brands.

He said decisions to purchase items extend beyond the household, which means buyers make sure the gifts they buy for those close to them also have positive feedback.

Aside from the 45 percent who listen to the opinions of their family and friends, 21 percent of the survey respondents also consider reviews made by other customers while 16 percent listen to product experts.

With this, Moy said retailers should be able to find a way to monitor what others are saying about them. They will also know if their advertising campaigns are working and how their customers are being influenced.

Before, when shopping meant going to a store and leaving with the item after payment, the shopping process was much simpler. These days, retailers are expected to be more flexible.

Moy cited that Best Buy managed to integrate its call center with its online stores and actual stores using IBM solutions, which can help the customer pay online and pick up the merchandise at a store of his choosing or have it delivered at a specific date.

Integrate channels

Some customers also prefer to do everything online and have it delivered while others want to be sure the item they want to buy is available at the store as soon as they pay a visit.

Moy said customers expect one brand to integrate all its channels for their convenience.

He said that even point of sale (POS) systems can be used to make better solutions for retailers. As an example, he said they can include information about a valued client that will reflect on the POS system, allowing the store to give the client a gift that is personalized to the client’s preferences.

“Retailers must provide consumers what they demand--a seamless shopping experience that delivers the merchandise they want, where they want it, at a price they are willing to pay.”

Published in the Sun.Star Cebu newspaper on February 02, 2012.