STAMFORD, Conn.–(BUSINESS WIRE)–When it comes to shopping behavior, price is always a key motivator.
However, to sustain a customer’s loyalty over the long term, retailers
often find it valuable to focus on the customer experience, according to
Synchrony Financial’s 2015 Customer Experience and Impact Study.*
Examining 27 elements of the shopping experience, Synchrony Financial
a premier consumer financial services company with 80 years of retail
heritage, identified the top four experiences that are most valued by
customers and translate into greater spend and loyalty for retailers.
A study sponsored by Synchrony Financial in May 2015 gathered
shopper input on the most and least important elements of their
experience, as well as factors that influence purchase decisions and
loyalty. The study focused on apparel, department store and mass
merchant retailers. Study participants included more than 1,000
consumers nationwide who make household financial decisions, have a
credit card, and shopped at one of 35 retailers in the past 12 months.
More than half of shoppers say they would pay a higher price for the
customer experiences they value most, and 77% of shoppers would be more
loyal to stores that provide their personal top three customer
experiences. Of the 27 retail elements studied, four emerged as most
valuable to consumers and indicate the importance of simplifying and
easing the shopping experience. The top four elements include:
1. Pick your own sale items ranked highest in the survey, with
42% of customers finding this a valuable shopping feature.
2. Hassle free returns was noted by 41% of respondents as
important, with favorite benefits such as no time limit, no need for a
receipt and free postage on returns.
3. No coupons needed to always get the sale price is key for 40%
of participants who automatically want the lowest price without having
to clip or find discounts.
4. Earn points to redeem for extra savings is ranked by 33% of
shoppers as an important benefit and may lead them to spend more with
the retailer when rewards are easy to accumulate and redeem.
“Retailers that build lasting loyalty know their customer’s preferences
and integrate these elements into the shopping experience,” said Toni
White, chief marketing officer, Synchrony Financial. “This study
reinforces the finding that purchase decisions are driven by positive,
practical and personalized experiences, in addition to a compelling
Retail Category Differences
In addition to the four elements that matter most to survey respondents,
aspects that contribute to the “best in-store experience” as described
by shoppers in each retail category include:
Apparel stores: 73% will shop more often as a result of
helpful, attentive associates; clothes they like and a variety of
merchandise; and good value and prices.
Department stores: 62% of shoppers will visit more if there are
helpful, courteous associates; value, affordability and good sales;
and clothes they like in their size.
Mass merchants: 57% of customers want a one-stop shopping
experience and good discounts, deals and prices; the merchandise they
want; and to make one trip with products that are easy to find.
Shopper Segment Preferences
Certain experiences matter more than others to different shopper
segments. The vast majority of millennials (89%) indicate they would be
more loyal to retailers offering the benefits they want most.
Millennials (69%) and Gen Xers (55%) are also more likely to pay more
for the experiences they value.
The Synchrony Financial Market Research team studies trends and customer
behavior to deliver key insights on areas that include consumer
behavior, purchasing trends, the growing use of digital tools, and
consumer shopping and payment preferences. Through the Synchrony Connect
program, Synchrony Financial partners can connect with subject matter
experts to gain knowledge and expertise beyond credit to help them grow,
lead and operate their business. More information can be found at www.SynchronyFinancial.com.
About Synchrony Financial
Synchrony Financial (NYSE: SYF)
is one of the nation’s premier consumer financial services companies.
Our roots in consumer finance trace back to 1932, and today we are the
largest provider of private label credit cards in the United States
based on purchase volume and receivables.** We provide a range of credit
products through programs we have established with a diverse group of
national and regional retailers, local merchants, manufacturers, buying
groups, industry associations and healthcare service providers to help
generate growth for our partners and offer financial flexibility to our
customers. Through our partners’ over 300,000 locations across the
United States and Canada, and their websites and mobile applications, we
offer our customers a variety of credit products to finance the purchase
of goods and services. Synchrony Financial (formerly GE Capital Retail
Finance) offers private label and co-branded Dual Card credit cards,
promotional financing and installment lending, loyalty programs and
FDIC-insured savings products through Synchrony Bank. More information
can be found at www.synchronyfinancial.com
Sources: *Synchrony Financial Customer Experience and Impact Study, May
2015. Research conducted by an independent, third-party firm, RTi
Research, on behalf of Synchrony Financial.
**The Nilson Report (April, 2015, Issue # 1062) – based on 2014 data
Topics: Retail, credit cards, shopping, consumers, loyalty,
Editor Note: Graphic data representations available
©2015 Synchrony Bank/Synchrony Financial, All rights reserved.